Akkas & Associates Turkish company formation lawyers are prepared to assist you to form a company in Turkey. Our company formation lawyers are experienced in LLC establishment, joint stock company, holding company, branch office, liaison office, and free trade zone company incorporation, and company management and governance. Our company lawyers ready to inform you on How to Setup a Liaison Office in Turkey? fast and cost less. Today, clients are faced with unprecedented challenges as new laws and regulations are changing the way the corporate world works. Akkas & Associates has one of the preeminent corporate governance practices in Turkey, drawing upon the expertise of our corporate, securities, governance, litigation, and compensation specialists to provide our clients with the information and analysis needed to respond to a rapidly changing regulatory environment.
How to Setup a Liaison Office in Turkey?
Our attorneys are experienced in formation and governance of;
- Branch Offices
- Liaison Offices
- Limited Liability Companies
- Joint Stock Companies
- Free Trade Zone Companies
- Joint Ventures
in Turkey. We maintain a unsurpassed practice counseling and representing large and small companies and boards of directors regarding entity formation and corporate governance matters. We advise our public and private clients on all matters concerning formation of new entities from corporate formalities to tax issues. We regularly advise clients with respect to the formation of companies. Our services with respect to company formation include advising and drafting documents in connection with the formation of corporations, limited liability companies, and liaison offices. We provide targeted advice with respect to both the choice of entity and Turkish laws under the entity is to be organized. We also advise our company clients on a full range of new laws and related matters, as well as other corporate governance rules. Our clients range from small private companies with no internal legal staff to medium size companies with their own internal legal staff. For each of our clients we tailor our approach to that client’s unique requirements.
Setup a Liaison Office in Turkey
Companies established in accordance with laws of foreign countries can open liaison offices in Turkey provided that those offices do not carry out any commercial activities in Turkey. So as to open a liaison office in Turkey, the relevant company has to apply to the Directorate General of Foreign Investments of the Undersecretariat of Treasury. Applications for establishment and extension are to be finalized within 5 days following the application provided that the necessary documents are complete and proper. 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 authorities.
Liaison Office Formation Documents
The following documents have to be submitted to the Directorate General for establishing a liaison office in Turkey:
- The original copy of Certificate of Activity approved by the related Turkish Consulate or approved in accordance with the provisions of the Convention on the Abolishing the Requirement of Legalization for Foreign Official Documents Approval Obligation, prepared on the basis of the Hague Conference on International Private Law,
- Operational report or balance sheet and income statement of the main company,
- The original copy of power of authority issued to the name of the person who is appointed to carry out the operations of the liaison office,
- The original copy of power of attorney in case that another person will carry out the establishment transactions of the liaison office.
After an establishment permit is granted by the Directorate General of Foreign Investments, the relevant Liaison office is supposed to register to the local tax office and to send a copy of the tax office registration document to the Directorate General latest within 1 month.
Periodically Informing the Undersecreariat of Treasury
Liaison offices are supposed to provide the Directorate General with the followings every year latest until end of May so as to inform the authority about their activities of previous years. Documents certifying that the previous years expenses of the office have been covered by foreign currency transferred from abroad have to be enclosed as well.
Duration of Operation Permits and the Extensions
Liaison offices are granted operation permits for 3 years at most. For extensions, successive extensions of maximum 3 years each may be granted by taking into consideration the activities of previous years and plans and objectives for the future.
Termination of Activities
In case a liaison office terminates its activities, the termination and examination of business note to be received from the related tax office has to be submitted to the Directorate General of Foreign Investments. Liaison offices cannot claim any money transfer except the residue arising due to termination or liquidation. The Undersecretariat might cancel the permits of liaison offices in case the offices are found to have violated the legislation.
Setup a Liaison Office in Turkey Free Zone
A Turkish Free Trade Zone is a specially designed production site which aims at increasing export-oriented investment and production in Turkey, accelerating the entry of foreign capital and technology into Turkey, enhancing the productivity and economies of scale and increasing the utilization of external financial sources and trade opportunities. Although an Free Trade Zone is within the boundaries of the Republic of Turkey, it is treated as if it were a territory abroad. National regulations relating to foreign trade, financial and economic areas are partially applicable to Free Trade Zones. There are 20 Free Trade Zones in Turkey and their annual trade volume amounted to more than $ 23 billion in year 2005.
We maintain a unsurpassed practice counseling and representing large and small companies and boards of directors regarding company formation in a Turkish Free Trade Zone and governance matters. We advise our clients on all matters concerning formation of new entities from corporate formalities to tax issues. We regularly advise clients with respect to the formation of companies. Our services with respect to company formation include advising and drafting documents in connection with the formation of corporations, limited liability companies, and Turkish liaison and branch offices. We provide targeted advice with respect to both the choice of entity and Turkish laws under the entity is to be organized. Our clients range from small private companies with no internal legal staff to large companies with their own internal compliance teams. For each of our clients we tailor our approach to that client’s unique requirements.
Free Zone Company Tax Incentives
- Production companies in a Free Trade Zone are exempt from both corporate and income taxes.
- Goods imported from abroad are exempt from customs duty. In addition, there are no restrictions on the age/model of machinery to be imported from abroad, and these items are exempt from both VAT and customs duty.
- Goods purchased in Turkey by companies located in a Free Trade Zone are exempt from VAT.
- Companies based in a Free Trade Zone can keep their products in a designated duty-free storage area for an indefinite period of time and they can export the products in lots at any time (at the time of export, a customs duty for the lots is paid).
- Energy, water and telephone utilities supplied within a zone are all exempt from special consumption tax (OTV) and VAT
Free Zone Company Operating License
In order to operate in a Turkish Free Trade Zone, companies need an Operating License which is granted by the Regulator mentioned above. The firms which are found appropriate to get an Operating License and which intend to rent an open area must sign a rental contract with the Zone Operator, or Founder & Operator. Firms intending to rent a closed area must sign a rental contract with one of the users holding Renting Operating License. Upon the submission of a copy of the rental contract approved by the related Zone Directorate to the regulator, operating license is granted to the applicant.
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