Frequently Asked Questions About Liaison Offices in Turkey

What is a liaison office in Turkey and what is its purpose?
Can a foreign company establish a liaison office in Turkey?
What is the legal basis for establishing a liaison office in Turkey?
In which activities can a liaison office operate in Turkey?
What documents are required to establish a liaison office in Turkey?
From which authority must permission be obtained for a foreign company to open a liaison office in Turkey?
How long does the process of establishing a liaison office in Turkey take?
Does a liaison office pay taxes in Turkey?
Can a liaison office generate income in Turkey?
What is the duration of the activity period of a liaison office in Turkey?
How is the activity period of a liaison office in Turkey extended?
How is a liaison office closed in Turkey?
What procedures must be carried out for the closure of a liaison office in Turkey?
Is a work permit required for liaison office employees in Turkey?
Is it possible to employ foreign personnel in a liaison office in Turkey?
What are the advantages of opening a liaison office in Turkey?
What is the difference between a liaison office and a branch in Turkey?
Is it necessary to obtain legal consultancy when establishing a liaison office in Turkey?
Can a liaison office engage in trade in Turkey?
Why is attorney support important in the establishment of a liaison office in Turkey?
Are apostille and notary approvals mandatory for documents in liaison office applications in Turkey?
Do companies establishing liaison offices in Turkey have annual reporting obligations?
Which institutions audit the activities of liaison offices in Turkey?
What happens if a liaison office engages in commercial activities in Turkey?

What is a Liaison Office in Turkey and What is Its Legal Basis?

On which legal regulations is the establishment of a liaison office in Turkey based?

A liaison office in Turkey is a representation established by a foreign company to carry out limited activities such as marketing, promotion, information gathering, and technical support without engaging in commercial activities in Turkey. These structures serve as an initial step for foreign capital companies that want to understand the Turkish market, connect with business partners, and conduct feasibility studies prior to investment.

The establishment of a liaison office in Turkey is regulated under Law No. 4875 on Foreign Direct Investments and the Regulation on the Employment of Foreign National Personnel in Direct Foreign Investments enacted based on this law. Applications are conducted through the Investment Office authorized by the Ministry of Treasury and Finance. During this process, documents obtained from the Turkish representative office in the foreign company’s country of headquarters must be presented with notary approval and apostille certification.

The most important criterion in establishing a liaison office is the prohibition of commercial activities. This office is prohibited from generating income, issuing invoices, entering into contracts, or selling products or services in Turkey. Otherwise, the structure may be closed by the tax office and relevant supervisory bodies on the grounds of conducting commercial activities. At this point, clearly understanding the differences between a "liaison office," a "branch," or a "joint-stock/limited company" is of great importance.

Within this framework, consultancy obtained from experts in the field such as a Turkey immigration law lawyer or Izmir immigration law lawyer will ensure that the opening of the liaison office is carried out both legally and in compliance with regulations. Moreover, professional support in tracking legal changes and preparing documents completely plays a critical role in the healthy progress of the process.

What Are the Purposes of Foreign Companies Establishing Liaison Offices in Turkey?

What types of activities can foreign companies perform by establishing a liaison office in Turkey?

The decision of foreign companies to establish liaison offices in Turkey generally aims to understand the Turkish market, conduct market analyses before investment, and connect with the local business environment. These structures serve as a strategic transition point for companies wishing to develop market entry strategies without engaging in direct commercial activities.

Liaison offices may operate only with activities limited to promotion, market research, information gathering, coordination of regional activities, and technical support in Turkey. The main purpose of this office is to evaluate potential business opportunities of the parent company in Turkey, establish business partnerships, or prepare in advance for a possible future branch or company.

However, liaison offices established in Turkey are prohibited from earning income, signing contracts, selling goods and services, or issuing invoices as direct commercial activities. This restriction is imposed to ensure that Turkey offers a reliable environment for foreign direct investments and to guarantee that investment decisions are made consciously.

When the activities of such offices are carried out under the guidance of a Turkey immigration law lawyer or Karşıyaka immigration law lawyer, it becomes possible for the company to plan its activities without encountering legal problems. Staying within legal boundaries in terms of activity scope, extending activity permits, and avoiding problems during tax inspections are of critical importance.

What Are the Requirements for Establishing a Liaison Office in Turkey?

What conditions must foreign companies meet to establish a liaison office in Turkey?

Foreign companies wishing to establish a liaison office in Turkey must meet certain basic requirements. These conditions are determined to ensure that the liaison office is used only for non-commercial functions such as promotion and market research.

The first and most fundamental condition is that the applying company must be a legal entity established abroad and currently active. It is essential that the company does not conduct commercial activities in Turkey and applies solely for liaison purposes. The office to be established in Turkey must act as the representative of the parent company and must not engage in economic activity; this is a legal obligation.

The second important condition is that the company’s registration with the trade registry in its country of operation must be documented, and this registration must be proven with a notarized and apostilled document. Additionally, it is mandatory to submit the balance sheet and income statement for the last fiscal year. These documents demonstrate that the company is genuinely active and has established the liaison office solely for representation and promotion purposes.

Moreover, the authorized representative of the liaison office, including their identity information, residence address in Turkey, and contact details, must be included in the application file. The location of the office to be established, the lease contract, and the date the office will start operating must also be clearly specified.

To manage this process correctly, consultancy from experts such as an Izmir immigration law lawyer or Karşıyaka immigration law lawyer provides great convenience in preparing documents in compliance with legislation and in the flawless execution of notary and apostille procedures. Thus, negative outcomes such as application rejection or delays in the process can be prevented.

Application Process and Required Documents for Establishing a Liaison Office in Turkey

What documents do foreign companies need to establish a liaison office in Turkey?

Applications by foreign companies wishing to establish liaison offices in Turkey are evaluated by the Republic of Turkey Ministry of Trade – Directorate General of Incentive Implementation and Foreign Capital. Applications can be made directly to the Ministry or through authorized intermediary institutions or consultancy firms.

The application process is completed on average within 15–20 business days if the documents are prepared completely and in accordance with procedures. However, if there are deficiencies or formal errors in the documents, the process may be prolonged. Therefore, the application process must be conducted with utmost care.

The required documents include:

Application petition (signed by the person authorized to represent the company)
Notarized power of attorney of the applicant
Foreign company’s trade registry certificate (issued within the last three months, notarized and apostilled)
Activity certificate of the foreign company
Signature circular of the foreign company
Balance sheet and income statement for the last year
Curriculum vitae and identity information of the liaison office representative
Address details and lease contract of the office that will operate in Turkey
Explanatory note regarding the activities to be carried out in the office

All documents must be translated into Turkish by a sworn translator and notarized.

A small mistake during the application may lead to rejection or delay of the process. At this point, the guidance of a Turkey immigration law lawyer or Izmir immigration law lawyer plays a critical role in ensuring the file is prepared legally and in compliance with laws. Additionally, lawyer support provides significant advantages in speeding up the process and managing document traffic smoothly.

Activity Areas and Restrictions of Liaison Offices in Turkey

Which activities can liaison offices in Turkey perform and which are prohibited?

Liaison offices are representations that foreign companies can establish in Turkey for limited purposes without conducting commercial activities. Their fields of activity are strictly limited, and it is absolutely forbidden for them to engage in any activity that will generate direct commercial income in Turkey.

The permitted activity areas of liaison offices are:

Conducting market research
Collecting information about the Turkish market
Contacting potential business partners
Planning the parent company’s investments related to Turkey
Engaging in promotion and public relations activities
Providing technical support services (provided that these do not have a commercial nature)
Organizing training and seminars

Conversely, the activities liaison offices are strictly prohibited from performing include:

Selling products or services
Signing commercial contracts
Issuing invoices
Generating income
Engaging in buying and selling activities
Operating as a commercial enterprise in Turkey

These restrictions are based on the idea that foreigners who will conduct commercial activities in Turkey should establish a direct company or branch without neglecting obligations such as tax, work permit, and company establishment.

If it is determined that a liaison office conducts commercial activities, its activity permit is revoked and the institution is closed. This situation may have serious consequences both with the tax administration and the immigration authorities.

Therefore, legal consultancy provided by a Turkey immigration law lawyer or Karşıyaka immigration law lawyer to ensure correct understanding and non-violation of activity limits will secure the company's representation on a legal basis.

Tax Status of Foreign Companies' Liaison Offices in Turkey

Are liaison offices subject to taxation in Turkey?

Liaison offices established in Turkey are not considered income and corporate tax payers as long as they do not conduct direct commercial activities. According to tax legislation, liaison offices are regarded as entities that do not earn income and operate only with limited activities such as promotion, marketing, and information gathering. Therefore, they are not taxed in Turkey as long as they do not carry out profit-generating transactions.

However, this does not mean that liaison offices are completely exempt from tax obligations. They are subject to certain notification and declaration obligations within the scope of their activities. Among these, submitting annual activity reports to the Ministry of Trade is the primary obligation. Additionally, payments made to personnel working at the office may give rise to obligations regarding withholding tax declarations, stamp tax, and social security premiums.

The rental expenses, salary payments, and other operating costs of the liaison office are borne by the parent company. These payments are usually transferred from abroad to Turkey in foreign currency. No tax is levied on these funds transferred to Turkey; however, bank transfers and payment transactions must be recorded and documented.

Tax authorities may occasionally audit liaison offices. In these audits, whether the office is genuinely engaged in commercial activities, the number of employees, transactions conducted, and financial movements are examined. Therefore, establishing a legally compliant structure and continuing activities within this framework is essential.

At this stage, rather than a Turkey citizenship lawyer, it is of great importance to work directly with a Turkey immigration law lawyer or a consultant knowledgeable in tax law to avoid possible risks.

Work Permit Requirements for Liaison Office Personnel in Turkey

Is a work permit required for personnel working in liaison offices of foreign companies in Turkey?

The status of personnel working in liaison offices operating in Turkey differs depending on whether they are Turkish citizens or foreign nationals. No special permit is required for Turkish citizens working in liaison offices. However, in the case of foreign personnel, obtaining a work permit is a legal obligation.

Work permit applications for foreign personnel working in liaison offices are evaluated under Law No. 6735 on International Workforce and related regulations. The application is made to the Ministry of Labor and Social Security together with the activity permit document obtained from the Ministry of Trade to which the liaison office is affiliated. At this point, it is mandatory that the liaison office already has an activity permit.

The foreign personnel must have a valid residence permit in Turkey, and the employment contract must be submitted. The application process is completed online via the e-Government portal by both employer and employee. The approval process usually concludes within 30 days.

Employing foreign personnel without obtaining a work permit by the liaison office may result in serious administrative fines and even deportation sanctions for both the office and the employee. Therefore, compliance with the legislation is essential.

Even small mistakes in this process may lead to rejection of the application. Therefore, obtaining support from an expert consultant such as an Izmir work permit lawyer or Turkey immigration law lawyer is critically important for quick, accurate, and complete processing of procedures.

Activity Period and Extension Procedure of Liaison Offices in Turkey

What is the duration of the activity period of a liaison office and how is it extended?

Activity permits given to liaison offices established by foreign companies in Turkey are time-limited and usually set as 3 years at the initial stage. This period is determined by the Ministry of Trade according to the activity plan submitted by the company and the subject of activities in Turkey. The liaison office does not need to be closed at the end of the period; the activity permit can be renewed by applying for an extension.

Extension applications must be made at least 1 month before the expiration of the current permit. Late applications may be negatively evaluated by the Ministry and may result in the cancellation of the activity permit. Therefore, managing the period is one of the most important steps of the process.

Documents to be submitted during the extension application include:

Application petition
Detailed activity report for the previous activity period
Documents regarding current and planned activities of the parent company
Personnel, address, and activity information of the liaison office in Turkey
Financial information related to the office (rental expenses, salary payments, etc.)

The Ministry of Trade audits whether the liaison office is conducting commercial activities in Turkey or remains limited to representation and promotional activities through these documents. If evidence of commercial activity is found, the extension request is rejected.

Therefore, careful preparation of the extension application and arranging the documents legally and limited to activities is of great importance. At this point, conducting the process flawlessly with the support of a Karşıyaka immigration law lawyer or Turkey immigration law lawyer will secure the liaison office’s presence in Turkey.

Closure and Notification Obligations of Liaison Offices in Turkey

How is a liaison office closed in Turkey and which authorities must be notified?

Foreign companies wishing to terminate liaison office activities must carry out this process in accordance with relevant legislation. Closure procedures are not merely administrative decisions but also include official notifications to the Ministry of Trade and other relevant institutions.

The closure process begins with a petition submitted to the Directorate General of Incentive Implementation and Foreign Capital of the Ministry of Trade to which the liaison office is affiliated. This petition must include the reason for termination and a report on the last activity period. Additionally, documents related to all activities carried out by the office must be submitted.

As of the date the liaison office ceases its activities:

Bank accounts belonging to the office must be closed
The lease agreement must be terminated
Letters of termination must be obtained from the Social Security Institution (SGK) and tax offices regarding employees in Turkey
Closure notification must be made to the tax office
Workplace closure notification must be submitted to the relevant social security center
All documents must be submitted to the Ministry

Deficiencies in closure procedures may later be evaluated as issues by the tax office or Social Security Institution. Particularly, eliminating the suspicion that the liaison office conducted commercial activities is one of the most critical aspects of closure.

To ensure timely and complete legal notifications, conducting the process with the support of an Izmir immigration law lawyer or Turkey immigration law lawyer will remove the company’s legal liabilities and prevent possible future tax penalties and other adverse consequences.

Importance of Attorney Support in the Process of Establishing Liaison Offices by Foreign Companies in Turkey

What are the advantages of obtaining expert attorney support during the establishment process of liaison offices?

Establishing liaison offices by foreign companies in Turkey is a legally technical and meticulous process. Even a small mistake during this process can lead to rejection of the application, cancellation of the activity permit, or administrative and tax sanctions in later periods. Therefore, working with an expert attorney from the beginning of the application process ensures that the company is represented strongly and securely within the legal framework.

The establishment of a liaison office involves many details such as document preparation, notary certifications, apostille procedures, Turkish translations, preparation of the Ministry application file, and representative authorization procedures. Acting with the support of a Turkey immigration law lawyer or Izmir immigration law lawyer in all these stages provides savings in time and cost while guaranteeing legal security.

Additionally, expert legal consultancy is necessary for annual notifications, extension applications, obtaining work permits for foreign personnel, and possible closure of the office after activities begin. Otherwise, activities carried out through the liaison office may be subject to audits and sanctions on the grounds that they have commercial character.

You can obtain professional consultancy from KL Legal Consultancy during the establishment process of liaison offices by foreign companies in Turkey. By contacting our expert attorneys, you can benefit from the advantages of representing your company with legal security in Turkey.

Liaison Office Setup in Turkey