Opening the Branch of a Foreign Corporation in Turkey
Foreign companies may also operate through branches in Turkey. For establishing a branch, a permit from the Undersecretariat of Treasury Foreign Investment Department (FID) must be obtained before the registration to the Commercial Registry Office.
The registration and establishment of a branch can be completed in a period of two week after required documentations are completed. In addition to the documents afore-listed, the following documents are also needed to obtain permission from the Ministry of Industry and Trade. Branches can start to operate their businesses activity after the approval and registration of the Trade Register.
Company’s resolution to open a branch
Original copy of the company’s articles of association
Establishment and current status documents showing the registration and current legal status of the company
Power of attorney drawn by the company in favor of its resident representative, assigning full representation and accountability.
Furthermore, after the establishment, an establishment notification has to be sent to the Treasury. A data form regarding the branch’s operations and information on payments made to the equity accounts of the branch have to be submitted periodically to the Treasury as well.
The legal representative of the branch is required to be the resident in Turkey.
The income of a branch derived in Turkey is taxed in the same way as resident corporations.
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