Liaison Office in Turkey
Foreign Companies can open liaison offices in Turkey which are have no permission for trade activity. Liaison Offices only represent a company in Turkey, but all of activites should be done by main body.
For a liasion office permission in Turkey, the relevant company has to apply to the Secretary of Treasury, Foreign Investments Division, Ankara.
Generally, with proper documents, applications for establishment or extension of permission are to be finalized within 5 days. Applications of foreign companies to establish liaison offices so as to operate in sectors subject to special legislation such as money and capital markets, insurance, etc. are assessed by the relevant regulatory and supervisory authoritiesThe following documents have to submitted to the Treasury for establishing a liaison office in Turkey are as follows;
a) The original copy of Certificate of Activity approved by the related Consulate or approved in accordance withthe provisions of the Convention on the Abolishing Requirement of Legalization for Foreign Official Documents Approval Obligation, prepared on the basis the Hague Conference on International Private Law
b) Operational report or balance sheet and income statement of the main company for past two years,
c) The original copy of power of attorney issued to the name of the person who is appointed to carry out the operations of the liaison office in Turkey (Please ask for details )
d) The original copy of power of attorney in case that another person will carry out the establishment transactions of the liaison office (Please ask for details)
Compliance After Permission
After an establishment permit is granted by the Foreign Investments Division, Secretary of Treasury, the relevant Liaison office is supposed to register to the local tax office and to send a copy of the tax office registration document back to relevant division of Treasury latest within 1 month Annually, informing the Secretary of Treasury, Foreign Investments Division, Liaison offices should provide Foreign Investments Division with the followings every year latest until end of May, so as to inform the authority about their activities of past year. Documents should certify that the previous year expenses of the office, workers or expat have been covered by foreign currency transferred from abroad have to be enclosed as well. For Liaison Offices permission for operation are granted for 3 years, and after that 3 years succesfull extension is depend on consideration of past years activities, plans and objectives for future.
Termination Of Activity
In case activity termination, the termination of business note to should be received from the related tax office and has to be submitted to the Secretary of Treasury. Liaison offices could not transfer any money except the residue arising due to liquidation. Secretary of Treasury might cancel the permission in case of legislation violation.For further details, please contact with us