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How Can You Open a Branch in Turkey with Your Foreign Company?
Companies headquartered abroad can invoice, hire staff and bid for tenders in Turkey by registering a branch, without incorporating a separate legal entity. The legal basis of branch registration, the required documents, 2026 registry fees, corporate tax and profit remittance withholding, and post-registration obligations are set out step by step below.
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Companies headquartered abroad can invoice, hire staff and bid for tenders in Turkey by registering a branch, without incorporating a separate legal entity. The legal basis of branch registration, the required documents, 2026 registry fees, corporate tax and profit remittance withholding, and post-registration obligations are set out step by step below.
Branch Registration in Turkey for Foreign Companies: Law and 2026 Practice
Table of Contents
- What Is a Branch? Legal Status of a Foreign Company Branch
- Branch, Liaison Office or Subsidiary: Which One Fits?
- Requirements for Opening a Branch in Turkey
- Documents Required for Branch Registration
- How to Open a Branch in Turkey Step by Step
- Cost of Opening a Branch in Turkey (2026)
- Taxation of a Foreign Company Branch
- Obligations After Registration
- Subsequent Filings, Sub-Branches and Closure
- Sources
For a company headquartered abroad, registering a branch in Turkey is the most direct route into the local market without incorporating a separate legal entity. The branch carries the parent company's name and legal personality, yet it holds its own trade registry record, its own tax number and its own accounting books in Turkey. That dual character preserves the head office's corporate identity while creating a clearly defined counterparty under Turkish law.
What Is a Branch? Legal Status of a Foreign Company Branch
A branch has no legal personality separate from its parent. The head office remains liable for the branch's debts and undertakings. Article 40/4 of the Turkish Commercial Code sets out the framework: branches in Turkey of commercial enterprises headquartered abroad are registered in the same way as domestic enterprises, subject to the trade name rules of their own country, and a fully authorised commercial representative resident in Turkey must be appointed for each branch.
The residence requirement is frequently misread. The law does not ask for Turkish citizenship; it asks for residence in Turkey. A foreign national executive holding a valid residence permit and a Turkish address can be appointed as branch representative.
The branch trade name is equally regulated. It must reproduce the parent company's registered name and add its location in Turkey, following the pattern "Parent Company Name + Country of Head Office + Province Head Branch". This detail is one of the most common reasons registry offices return an application for correction.
Branch, Liaison Office or Subsidiary: Which One Fits?
The first real decision in a Turkish market entry is the choice of structure. The three options differ not only in formation procedure but in permitted activity and tax burden.
| Criterion | Branch | Liaison Office | Subsidiary (LLC / JSC) |
|---|---|---|---|
| Legal basis | TCC art. 40/4, Trade Registry Regulation art. 122 | Law no. 4875 art. 3(h) and its implementing regulation | General provisions of the TCC |
| Authority | Trade Registry Directorate | Ministry of Industry and Technology | Trade Registry Directorate |
| Commercial activity | Permitted | Prohibited | Permitted |
| Legal personality | None, parent is liable | None | Separate and independent |
| Minimum capital | No statutory minimum, allocated capital must be declared | None, expenses funded in foreign currency by the parent | Statutory minimum applies by company type |
| Corporate tax | 25% as a limited taxpayer | Not a corporate taxpayer | 25% as a full taxpayer |
| Duration | Indefinite, tied to the parent | First permit up to 3 years, extendable by activity type | Indefinite |
A liaison office is sufficient for market research, supplier quality control or technical support provided on behalf of the head office. Any structure that will issue invoices, bid for tenders, hire staff and generate revenue needs a branch or a subsidiary. Liaison permits are granted for a maximum of three years initially; regional management centres may be extended up to ten years, while market research and product promotion activities cannot be extended at all.
Requirements for Opening a Branch in Turkey
Is There a Minimum Capital Requirement?
No statutory minimum capital applies to the Turkish branch of a foreign company. Saying that "no capital is needed" is nevertheless an incomplete reading: under article 122 of the Trade Registry Regulation, the foreign branch declaration must state the capital allocated to the branch. In practice this figure is set at a level that covers first-period operating expenses and any guarantee requirements. Regulated sectors such as banking and insurance bring their own capital thresholds and supervisory approvals.
Who Can Be the Fully Authorised Commercial Representative?
The person who will conduct all commercial transactions of the branch in Turkey is the fully authorised commercial representative appointed by resolution of the parent company. The more precisely the scope of authority is drafted in that resolution, the smoother every later step becomes, from opening a bank account to signing customer contracts. More than one representative may be appointed, and a separate registration fee arises for each.
How Is the Branch Trade Name Determined?
The name must contain the parent company's full registered name. It cannot be translated or abbreviated; the country of the head office and the province designation are appended to it. A second branch of the same parent in another province follows a comparable pattern.
Documents Required for Branch Registration
The contents of the application file are listed item by item in article 122 of the Trade Registry Regulation, and chamber of commerce registration guides refer to the same provision.
| Document | Provision |
|---|---|
| Letter from the competent authority of the home country showing the conditions sought for branch registration | art. 122/1-a |
| All other documents required by home country legislation | art. 122/1-b |
| Current registry records and certified articles of association of the parent | art. 122/1-c |
| Parent resolution to open the branch and appoint the representative | art. 122/1-ç |
| Foreign branch declaration (name, type, allocated capital, representative and address details) | art. 122/1-d |
| Power of attorney, where the resolution does not grant full authority | art. 122/1-e |
| Signature declaration of the representative | art. 122/1-f |
| Ministerial or regulatory approval where required | art. 122/1-g |
A petition, an establishment notification form, a chamber registration declaration and a copy of the representative's identity document or passport are also filed.
Apostille, Consular Certification and Sworn Translation
Every document issued abroad must complete the certification chain before it becomes valid in Turkey. An apostille is sufficient for countries party to the Hague Convention; for other jurisdictions the documents must be certified by the relevant Turkish consulate. Certified documents are then translated into Turkish by a sworn translator and notarised. Skipping any of these three stages sends the file back at registration stage and typically adds more than two weeks to the timeline.
How to Open a Branch in Turkey Step by Step
Branch Registration Flow
1 Resolution and documentation — The parent adopts the branch resolution; registry extracts and articles of association are obtained.
2 Certification and translation — Documents pass apostille or consular certification, then sworn translation and notarisation.
3 Appointment of representative — A fully authorised commercial representative resident in Turkey is named and files a signature declaration.
4 MERSIS application — The application is created in the system, a request number is issued and a registry appointment is booked.
5 Registration and announcement — The registry directorate completes the entry and it is published in the Turkish Trade Registry Gazette.
6 Tax and operations — Tax office registration, certification of books, bank account and social security employer file are completed.
Total duration depends on how complete the file is. Apostille and translation are usually the longest items; registration itself is completed quickly once the file is in order.
Cost of Opening a Branch in Turkey (2026)
Registry fees are revalued annually and chamber service charges differ by province. The figures below follow the 2026 tariff of the Istanbul Chamber of Commerce.
| Item | 2026 Amount |
|---|---|
| Branch registration fee — capital companies (JSC / LLC) | TRY 35,354.50 |
| Branch registration fee — sole proprietorships | TRY 5,466.10 |
| Representative registration fee — capital companies, per person | TRY 8,598.80 |
| Registry certificate | TRY 895.80 |
| Trade Registry Gazette announcement | Calculated per word under the tariff |
| Apostille, sworn translation, notary and power of attorney | Varies by document count and jurisdiction |
Law no. 492 on Fees states expressly that branches of foreign enterprises in Turkey are subject to the same fee. A branch of a foreign capital company is therefore charged under the same tariff as a domestic capital company.
Taxation of a Foreign Company Branch
Corporate Income Tax and Limited Liability to Tax
Turkish branches of entities whose legal and business centres are abroad are treated as limited taxpayers and are taxed only on income sourced in Turkey. The general corporate income tax rate for 2026 is 25%. Banks, financial leasing companies, insurance and pension companies and capital market institutions are taxed at 30%.
What Is the Withholding Tax on Profit Remittance?
Profit transferred by the branch to its head office triggers a further withholding. The rate under article 30/6 of the Corporate Income Tax Law was increased from 10% to 15% by Presidential Decree no. 9286 dated 22 December 2024.
| Stage | Calculation | Amount |
|---|---|---|
| Branch profit | — | 100 |
| Corporate income tax | 100 × 25% | 25 |
| Amount available for remittance | 100 − 25 | 75 |
| Profit remittance withholding | 75 × 15% | 11.25 |
| Effective total burden | 25 + 11.25 | 36.25% |
Effect of Double Taxation Treaties
Where a double taxation treaty exists between Turkey and the country of the head office, the 15% withholding may fall to the lower rate provided in that treaty. The treaty text of the parent jurisdiction should therefore be reviewed while the structure is still being designed. For a case that comes up constantly in Gulf-based group structures, see the double taxation avoidance agreement between Turkey and the UAE.
Value Added Tax
Goods delivered and services rendered by the branch in Turkey are subject to VAT. The general rate is 20%, with reduced rates of 10% and 1%. The branch registers for VAT and files returns monthly.
Obligations After Registration
Registration is the start of the process rather than its end. The obligations that arise once the branch becomes operational are the ones most often overlooked, and they carry administrative penalties.
- E-TUYS reporting: Structures with foreign capital must file information through the Ministry of Industry and Technology's electronic incentive and foreign capital information system. Obtaining user authorisation is one of the first steps to complete after registration.
- e-Invoice and e-Archive: Under General Communiqué no. 509 on the Tax Procedure Law, taxpayers with gross sales revenue of TRY 3 million or more must move to the e-Invoice system. The scope of e-Archive invoicing was widened as of 1 January 2026.
- Books and filings: The branch keeps its own books and files advance corporate tax returns as well as the annual corporate tax return.
- Social security file: An employer file must be opened before any staff are hired.
Getting specialist support on bookkeeping, transfer pricing documentation and head office cost allocation prevents later disputes over the taxable base. Our accounting and finance services and international legal consultancy cover both the compliance calendar and the corporate structuring side.
Subsequent Filings, Sub-Branches and Closure
Registrable events continue after the branch is established. A change of representative, relocation, an increase in allocated capital and any widening of the scope of activity are each notified to the trade registry. Changes to the parent company's name or articles of association must also be reflected in the Turkish branch record.
The same parent may open a second branch in another province; in practice this is registered as a sub-branch linked to the first entry. If operations are wound down, closure is completed by deregistration from the trade registry and closure of the tax file, and the parent's closure resolution again passes through the certification and translation chain.
Groups weighing a Turkish branch alongside a wider restructuring often start from the trade framework between the two jurisdictions; the CEPA agreement between the United Arab Emirates and Turkey sets out the tariff and market access background.
World Company Setup manages Turkish branch registration for companies headquartered abroad as a single file, from document preparation through to tax office registration. Experience drawn from our operations in Dubai, Estonia, Hong Kong, Singapore and Saudi Arabia keeps the branch model correctly positioned inside multi-jurisdiction group structures.
Sources
- Turkish Commercial Code no. 6102, article 40/4
- Istanbul Chamber of Commerce — branch registration guide for foreign-headquartered enterprises
- Istanbul Chamber of Commerce — 2026 trade registry fees and service charges
- Turkish Revenue Administration — corporate tax rates and Communiqué no. 509
- Invest in Türkiye — establishing a business guide
- Ministry of Industry and Technology — liaison office permits and E-TUYS
Fee and tax figures on this page reflect the official tariffs in force as of 28 August 2026. Amounts may be revised during the year, so the current tariff of the relevant authority should be confirmed before filing.
Expert Support for Branch Registration in Turkey
We manage Turkish branch registration for foreign-headquartered companies as a single file, from document preparation through to tax office registration. Reach our team before you start, to settle the choice of structure and the cost plan.
Frequently Asked Questions
How does a foreign company open a branch in Turkey?
The parent company's governing body adopts a resolution to open the branch and appoint a representative. Registry extracts, articles of association and the resolution are apostilled or certified by a Turkish consulate, then translated by a sworn translator and notarised. The application is created in MERSIS and completed at the trade registry directorate. After the entry is announced, the tax office registration, certification of books and the social security employer file follow.
Is there a minimum capital requirement to open a branch in Turkey?
No statutory minimum capital applies. However, article 122 of the Trade Registry Regulation requires the foreign branch declaration to state the capital allocated to the branch. Regulated sectors such as banking and insurance apply their own capital thresholds and supervisory approvals.
What is the difference between a branch and a liaison office?
A branch may carry out commercial activity, issue invoices and is subject to corporate income tax as a limited taxpayer; it is registered by the trade registry directorate. A liaison office may not trade or generate revenue and is not a corporate taxpayer; its permit is granted by the Ministry of Industry and Technology for a maximum of three years initially.
Must the branch representative be a Turkish citizen?
No. Article 40/4 of the Turkish Commercial Code requires a fully authorised commercial representative resident in Turkey. There is no citizenship condition, so a foreign national holding a valid residence permit and a Turkish address may be appointed.
Which taxes does a foreign company branch pay in Turkey?
The branch is a limited taxpayer and pays corporate income tax at 25% for 2026 on Turkish-sourced income; banks, insurance and capital market institutions are taxed at 30%. VAT applies to its deliveries and services, with a general rate of 20%. Remitting profit to the head office triggers a separate withholding tax.
What is the withholding tax rate on branch profit remittance?
The rate under article 30/6 of the Corporate Income Tax Law was increased from 10% to 15% by Presidential Decree no. 9286 dated 22 December 2024. It is calculated on the amount remaining after corporate income tax, bringing the effective total burden to roughly 36.25%. A double taxation treaty between Turkey and the head office jurisdiction may reduce this rate.
How much does it cost to open a branch in Turkey?
Under the 2026 tariff of the Istanbul Chamber of Commerce, the branch registration fee is TRY 35,354.50 for capital companies and TRY 5,466.10 for sole proprietorships. A further TRY 8,598.80 registration fee arises for each representative. Trade Registry Gazette announcement costs plus apostille, sworn translation and notary fees are added on top. Fees are revalued every year.
Which documents are required for branch registration?
Under article 122 of the Trade Registry Regulation: a letter from the competent authority of the home country, any documents required by home country legislation, current registry records and certified articles of association of the parent, the resolution to open the branch and appoint a representative, the foreign branch declaration, a power of attorney where needed, the representative's signature declaration and, where applicable, ministerial approval. A petition, establishment notification form and chamber registration declaration complete the file.