Foreign Company Branch in Turkey | Registration & Legal Requirements

Why Open a Branch in Turkey?

Foreign companies often prefer establishing a branch in Turkey rather than a new legal entity when:

• They want to expand quickly without creating a separate corporation,
• They wish to operate under the same trade name,
• They plan to maintain full control over the branch.

In Turkey, a branch is treated as a domestic commercial enterprise, but it is not an independent legal entity — it operates under the foreign company’s identity.

Legal Framework

• Branches of foreign companies are governed by the Turkish Commercial Code (TCC).
• Registration takes place at the Trade Registry Directorate in the location of the branch.
• The branch must appoint a fully authorised legal representative who is resident in Turkey.

Related reading: Company Formation in Turkey.

Required Documents for Branch Registration

When registering a foreign branch in Turkey, the following must be submitted (with notarised Turkish translations):

1. Letter from competent authority of the home country confirming compliance with its law.
2. Certified copies of the company’s registry records and articles of association.
3. Board resolution approving branch opening and appointing a fully authorised Turkish resident representative.
4. Declaration including:
   • Trade name, legal form, and registration number,
   • Capital and activity scope,
   • Headquarters details,
   • Branch title and allocated capital,
   • Information of authorised representative(s).
5. Power of attorney (if not already included in the branch resolution).
6. Signature declarations of branch representatives.
7. Approvals from the Ministry of Trade or other official institutions (if required by sector).

Key Features of a Branch

• No separate legal personality: Acts directly on behalf of the parent company.
• Full liability: Parent company remains fully responsible for the branch’s debts.
• Commercial title: Must include the foreign company’s trade name and “Turkey Branch”.
• Taxation: Treated as a permanent establishment for tax purposes in Turkey.

Advantages of Branches

• Quick setup compared to establishing a new company.
• Full parent company control.
• Easier for temporary or project-based operations.

Limitations

• Lack of independence: Branch cannot act beyond the authority of the parent company.
• Some investors and partners prefer dealing with locally incorporated companies.
• Requires permanent representation in Turkey by a local resident.

Alternative option: Transfer of Company Headquarters to Turkey.

Practical Considerations for Foreign Investors

• All foreign documents must be notarised, apostilled, and translated into Turkish.
• Sector-specific approvals may be needed (e.g., finance, insurance).
• Tax registration and Social Security registration must follow Trade Registry registration.

Key Takeaways

• Branch = extension of the parent company, not a new entity.
• Requires a fully authorised Turkish resident representative.
• Subject to Trade Registry registration and Ministry of Trade oversight.
• Parent company remains fully liable for the branch’s obligations.

Professional Guidance

MFY Legal supports foreign companies in preparing branch applications, managing translations and notarisation, liaising with the Trade Registry, and ensuring compliance with Turkish corporate law.

Contact us today to open your branch in Turkey smoothly and legally.