Investment Office of Turkey prepared a guidance related to establishment of Branch office in Turkey. As law office, we thought the best guidance would be the source that the government provide to its citizens and its potentional foreign investors regarding branch in Turkey.
Not an independent legal entity. Its duration is limited to the duration of the parent company.
No capital requirement, however, it would be wise to allocate a budget for the operations of a branch office.
A branch office may be incorporated only for the same purposes as those of the parent company.
Repatriation of branch profit is allowed. The branch profit transferred to the headquarters is subject to dividend withholding tax at a rate of 15 percent, which may be reduced by Double Taxation Prevention Treaties.
An application with the following documents must be submitted to the relevant Trade Registry Office for the registration of a branch:
Petition (must be signed either by an authorized signatory under the company seal or by proxy; if signed by the latter, then the original or the notarized copy of the power of attorney must be attached to the petition)
The resolution of the competent organ of the parent company to open a branch
A certified original copy of the parent company’s articles of association
Certificate of Activity of the parent company or any equivalent documentation that sets forth registration and current status of the parent company
A power of attorney granted by the parent company in favor of its resident representative, assigning full representation and accountability
Five copies of the Establishment Declaration Form (the related fields must be filled and signed by the authorized person)
Two copies of the power of attorney stating the representative in Turkey
If the branch representative is a Turkish national, a notarized copy of his/her ID card. If not, a notarized copy of the authorized representative’s passport translated into Turkish
Two copies of the signature declarations of the branch representative under the branch title
A letter of commitment (must be signed by authorized person)
A Chamber Registry Declaration Form Statement to be obtained from the Trade Registry Office (including photographs of the branch representatives)
It should be noted that all the necessary documents that will be issued and executed outside Turkey must be notarized and apostilled or alternatively ratified by the Turkish consulate where they are issued. The original executed, notarized, and apostilled documents must be officially translated and notarized by a Turkish notary.