Opening a branch office in Turkey is an effective way for business owners to promote and represent their already-existing company without establishing a physical corporation. Firstly, it is necessary to mention what branch office actually is. A branch office is a corporation’s location or, more broadly, an institution that does not have its own legal structure and is physically separated from the organization’s main office.
Moreover, a branch formation reveals the owning company to full taxability and legal liability for the activities of the branch office. As a result of this, establishing a branch office is another option for starting a physical business entity of a company that already exists in another realm of authority.
In basic terms, a branch office enables foreign owners to represent their company in Turkey rather than setting up a whole new stock company or a limited liability company which are one of the same ways in the process of starting a business in Turkey.
To not get distracted and accomplish all the required steps, business owners who are on the way to opening a branch office can consult ERAI Turkey that can offer its professional help and guidebook for required future steps.
In this article, all the subheadings regarding the process of opening a branch office in Turkey are listed below with the aim of enlightening foreign business owners:
- Why open a branch office in Turkey?
- How to open a branch office in Turkey?
- Essential documents required for opening a branch office in Turkey
- Advantages of opening a branch office in Turkey
WHY OPEN A BRANCH OFFICE IN TURKEY?
Business owners often think about the process and whether it is beneficial and has advantages or not while deciding on the issue of setting up a branch office in Turkey. It is, in fact, has a bunch of positive points for business professionals taking this step for their company.
Because of its geopolitical location and dramatically growing economic environment, including local and international companies, Turkey is becoming one of the most suitable countries to open a branch office. Thus, the country attracts foreign investors from all over the world due to its growing economy, geopolitical place, promising growth opportunities, the hardworking business community, and young population.
For these reasons, there are numerous advantages for foreign investors who wish to establish a business in Turkey. Turkey is an exciting market because of its strategic location as the trading hub for Europe and the Middle East.
HOW TO OPEN A BRANCH OFFICE IN TURKEY?
To open a branch office in Turkey, business owners need to follow some required steps and accomplish the whole process by filling in some required documents. The first action in the branch establishment process can be applied online through MERSIS. Branches, like corporations, must be recorded in the trade register. To do so, owners ought to apply to the Trade Registry Office along with the request number obtained from MERSIS and the necessary documents.
ESSENTIAL DOCUMENTS REQUIRED FOR OPENING A BRANCH OFFICE IN TURKEY
To accomplish the branch corporation establishment process, some required documents are needed to be filled with detail and applied to the necessary institutions by the board management professionals. However, different institutions may require you to apply to several official organizations to wrap up the whole process.
If business owners collaborate with ERAI Turkey, the entire process of establishing the branch office will be easier and more precise as ERAI Turkey offers its professional help and guides you without any errors.
Foreign investors should submit the following documents to the Trade Registry Office for starting a branch office in Turkey:
- Director’s resolution concerning the establishment of a branch office in Turkey
- Passport copy of the person authorized to represent and bind the branch (copy of the identity and residence certificate for Turkish citizens)
- A notary certified signature of the persons authorized to represent the branch
Also, owners should apply to the Ministry of Industry and Trade to open a branch, signed by the director of the company and must include:
- Company title, nationality, date of establishment, address and capital
- Name, nationality and address of the authorized representative residing in Turkey
- Business activities of the branch
- Letter of Commitment in accordance with Article 29 of the Trade Registry Regulation
After submitting the documents, the next step for the directors is to accomplish the Trade Registry procedure that includes the following documents:
- Branch opening permit obtained from the Ministry of Industry and Trade
- An application in the Turkish language signed by an authorized person
- Two notarized and legalized copies of the Power of Attorney
- Turkish document – Müzeyyel Beyanname
- If the branch representative is a Turkish national, a notarized copy of his ID card – if not, a notarized copy of the passport of the foreign authorized representative.
- Company signature authority showing the representative’s signature specimen and title
- Letter of Commitment in accordance with Article 29 of the Trade Registry Regulation
- A Chamber Registry Declaration Form, obtained from Trade Registry Office
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ADVANTAGES OF OPENING A BRANCH OFFICE IN TURKEY
Turkey has become an excellent choice for investors in the past few years with its geographical, financial, and cultural structure. Current business policies are centred on encouraging and supporting foreign investment.
Because of the economic and legal changes, foreign investors can now conduct almost all of their business remotely by assigning a proxy in Turkey and eliminating the need to visit Turkey in person. Also, it is capable of performing some processing steps online via the internet. It is possible to set up a branch office in Turkey in much less time and at a lower cost, without having to travel frequently and coping with bureaucratic procedures.
Rather than forming a new corporation in Turkey, an international organization can invest in its commercial operations by opening a Turkish branch. In fact, it is frequently simpler and less expensive. The minimum capital necessary for the formation of joint-stock and limited liability companies does not apply to branches.
Through establishing a branch, the investor gains the ability to begin business activities in Turkey in a shorter period of time. Another benefit is that units are dependent on the parent company and are simple to manage.
