SETTING UP A LIAISON OFFICE
Companies based abroad can promote their business by opening Liaison Offices in Turkey. The main difference between a Branch and a Liaison Office is that the Liaison Offices cannot carry out any activity through their offices in Turkey to generate revenue. Another difference is that the expenditures of a liaison office must be met entirely from foreign currency brought in from abroad. Liaison Office permits are granted for a period up to three years, and extension applications must be made at the end of each period or permit.
The permit issuing authority for opening a Liaison Office in Turkey is the Directorate General of Foreign Investments, Turkish Treasury. If the application procedure is in order and documents completed, the permit will be issued within five days.
SETTING UP PROCEDURE
The documents and forms listed below must be submitted to the permit issuing authority.
– Original copy of ” Certificate of Activity ” showing the number of employees and the annual expenditure estimate
– Operational report or balance sheet and income statement of the main company
– The original copy of Power of Authority issued to the representative authorised to manage the office
– The original copy of Power of Attorney issued to the person authorised to carry out the establishment transactions of the liaison office.
AFTER ESTABLISHMENT OBLIGATIONS
– Following the obtaining of the permit, the Liaison Office must register with the local tax office. Within one month from the date of establishment, the office must submit a copy of the Tax Office Registration Document to the Directorate General.
– Forms and documents must be supplied to the Directorate General each year about their activities (Data Form for Liaison Office Activities) and all expenditures have been paid with the transferred foreign currency.
– In case of winding up of the Liaison Office, “Termination and Examination of Business Note” issued by the tax office must be submitted to the Directorate.
|Field Of Activity||Duration|
|Representation and Hosting (Representation of the foreign company at sectoral institutions and relevant organizations, coordination of business contacts of the company officers, meeting the office demands of those officers)||
|Control, Inspection and Provision of Local Suppliers (Provision of local producers and products for the foreign company and inspection of those suppliers in terms of the quality standards of the foreign company)||
|Technical Support (Provision of training and technical support services for distributors, supporting local suppliers for their enhancement of quality standards)||
|Communication and Transfer of Information (Collection and transmission of information to the foreign company having business contacts in Turkey such as the market conditions, consumption trends, sales of competitors and distributors, performance of distributors)||
|Regional Management Headquarter (Particularly oriented to other units of the foreign company in foreign countries; coordination and management of some operations such as formulation of investment and management strategies, planning, promotion, sales, after sales services, brand management, financial management, technical support, R&D, external supply, testing of newly developed products, laboratory services, research and analysis, training of personnel)||