November 8, 2010, 2:11 pm
There are many ways in which a foreign entrepreneur can do business in Turkey. Setting up a company, usually Limited Liability Company may turn out to be a profitable activity, as the economic environment is stable and the workforce qualified. However already existing foreign companies may establish branches on the territory of Turkey. A Turkish branch is not a separate legal entity from its parent company, which is fully liable for its debts and obligations.
Preliminary activities prior to registering a Turkish branch
In order for a company branch to be able to commence its commercial activity it must register with the Trade Registry Office, but prior to that some procedures need to be completed. The company branch must be incorporate by a representative. Preparing and notarizing the articles of association and documentation of the branch is mandatory in order to submit it along with the registration application. After drafting all the required documents the branch may apply for registration.
Obtaining permit for opening a Turkish branch with the Ministry of Industry and Trade approval
The Ministry of Industry and Trade is the authority for opening a branch based in Turkey. In order to register an application signed by the authorized representative of the company must be filed with the Ministry of Industry and Trade. The application has to be posted to the Ministry Directorate and must include the date of establishment of the company, the address and capital, information of the authorized representative, business activities of the branch, Turkish translations and a proof of existence of the foreign parent company.
Registering a Turkish branch with the Trade Registry Office
After obtaining the permit from the Turkish Ministry of Industry and Trade the branch must register with the Trade Registry Office. The documents required for registration include an application in Turkish language signed by the authorized representative, notarized and legalized copied of the Power of Attorney and Articles of Association, and specimen signatures of the managing board and representative. Upon a few days from submitting the application, the registration certificate is issued.
Setting up a Turkish company branch from abroad
The state of Turkey does not impose restrictions for fully owned companies, and therefore setting up a foreign company branch In Turkey is welcomed. However a registered office must be provided for the company branch and an authorized representative must carry out the incorporation procedures.
How long does it take to establish a Turkish branch?
Most of the incorporation procedures are completed in one day, but the time period might vary depending on many factors. Preparing and notarizing the articles of association and other documents might take up to two, three days, depending on the notary's schedule. Obtaining the permit from the Ministry and Trade Approval also takes a few days, same as obtaining the registration certificate from the Trade Registration Office. Usually a company branch in Turkey is ready to function in approximately two weeks.
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BridgeWest provides a wide range of legal services in Turkey through our affiliated Turkish lawyers and Law Firms in Istanbul, Ankara and other major cities in Turkey. We are mainly specialized in th ... [More]