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Turkey is a dynamic market that attracts foreign investors for new business opportunities. To further encourage investors, Turkish law envisages the possibility of establishing a liaison office in Turkey for foreign companies. Liaison offices provide foreign investors with various financial and legal benefits. The motivation behind such benefits is to familiarize foreign investors with the dynamics of Turkish market.<\/p>\n
The legal framework regarding the establishment and operation of liaison offices in Turkey is regulated under the Foreign Direct Investment Act No. 4875 and the Regulation on Implementation of the Foreign Direct Investment Act (\u201cRegulation<\/strong>\u201d).<\/p>\n It is set out under the said legislation that companies incorporated pursuant to the laws of foreign countries may open liaison offices in Turkey, provided that they obtain permission from the Ministry of Industry and Technology and do not engage in commercial activities.<\/strong><\/p>\n It is worth mentioning that liaison offices do not have a separate legal personality from their parent company. For the sake of example, liaison offices may be considered as a department or a room within their parent companies\u2019 headquarters. Accordingly, the parent company is fully liable for the actions, debts and obligations of its liaison office.<\/p>\n Certain permitted fields of activity that liaison offices may carry out under Turkish law are as follows:<\/p>\n <\/p>\n For the first application to obtain permission from the Ministry, liaison offices are granted with a maximum of three-year-period. Any application for establishment of a liaison office is finalized by the Ministry within fifteen business days<\/u> following the application, provided that the requested information and documents are complete.<\/p>\n The application documents to be submitted to the Ministry in order to establish a liaison office are as follows:<\/p>\n After obtaining their permits, liaison offices must submit a copy of their tax office registration document and the lease agreement for their office space to the General Directorate of Incentive Practices and Foreign Capital (\u201cDirectorate<\/strong>\u201d). Such submission must be made within a month.<\/p>\n Towards the expiration of their operation permit, liaison offices may apply to the Directorate for extension (except for liaison offices that carry out market research or engage in promotion). The Directorate finalizes any application for establishment or extension within fifteen business days<\/u> following the application, provided that the requested information and documents are complete.<\/p>\n <\/p>\n Liaison offices provide great convenience for foreign investors, especially in terms of taxation. For ease of reference, legal and financial advantages provided for liaison offices are listed below:<\/p>\n <\/p>\n In conclusion, foreign investors intending to enter the Turkish market may prefer to establish a liaison office in Turkey to familiarize themselves with the business environment of the country. Thanks to this alternative model, foreign investors may carry out market research regarding Turkey while enjoying various financial and legal advantages.<\/p>\n Please kindly note that it requires technical knowledge to establish and maintain a liaison office. Therefore, it is advised to seek legal advice before submitting an application to establish a liaison office in Turkey.[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":" [vc_row][vc_column][vc_column_text] Liaison Offices under Turkish Law 1.\u00a0\u00a0\u00a0\u00a0\u00a0 Overview Turkey is a dynamic market that attracts foreign investors for new business opportunities. To further encourage investors, Turkish law envisages the possibility of establishing a liaison office in Turkey for foreign companies. Liaison offices provide foreign investors with various financial and legal benefits. The motivation behind…<\/p>\n","protected":false},"author":2,"featured_media":1883,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[44,45,43,42,40,39,41],"class_list":["post-1874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-commercial-law","tag-advantages-of-liaison-offices-in-turkey","tag-benefits-of-liaison-offices-in-turkey","tag-establishing-a-liaison-office-in-turkey","tag-how-to-open-a-liaison-office-in-turkey","tag-liaison-office","tag-liaison-office-in-turkey","tag-liaison-office-under-turkish-law","category-38","description-off"],"yoast_head":"\n\n
2.\u00a0\u00a0\u00a0\u00a0\u00a0 Incorporation of a Liaison Office in Turkey<\/h5>\n
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3.\u00a0\u00a0\u00a0\u00a0\u00a0 Advantages of Liaison Offices<\/h5>\n
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4.\u00a0\u00a0\u00a0\u00a0\u00a0 Conclusion<\/h5>\n