Experienced human resources in the field of technology attracts the interest of foreign companies to Turkey again?

Opening Liaison office in Turkey is a right way to understand Turkish Business environment ?

Mali Müşavir Evren Özmen-CPA Evren ÖZMEN

In these days we see that a lot of foreign companies began to establish a liaison offices in Turkey again. Therefore in this article I want to give some information about liaison office legal regulations in Turkey.

Where to Apply ? Who Gives Permission ?

Turkish Ministry of Economy is authorized to grant permission to open a liaison office and to extend the duration of such permits. Please do not forget that first condition to open liaison office in Turkey is not to perform any commercial activities.

Applications for establishment will be concluded within fifteen working days from the date of application, if the required information / documents are all complete.

What activities can be done by opening a liaison office in Turkey?

  • Representation of the company (coordination and organization of business contacts of foreign companies in Turkey)
  • Auditing and Control of the Suppliers in Turkey to perform right quality
  • Technical support (Providing training or technical support for distributors, and providing support to suppliers to improve quality standards)
  • Communication and information transfer (Market developments in order to be forwarded to foreign companies having business relations with Turkey, consumer trends, competitors and distributors’ sales, the performance of the distributor companies, and so on. Collection and transfer of information on the subject)
  • Regional Management(Establishment of investment and management strategies, planning, promotion, sales, after-sales services, brand management, financial management, technical support, R & D, external procurement, testing of newly developed products, laboratory services for the foreign company’s units in other countries. coordination and management of activities such as research, analysis and training of employees)

What are the benefits of establishing a liaison office in Turkey ?

  • There is no corporate income tax liability for liaison offices which will be located in Turkey
  • Since the liaison offices are established on the condition that they do not carry out commercial activities in any way, they do not need to establish VAT liability.
  • There is no income and stamp tax liability for employees wages.
  • Regarding to social security premiums, if employee of the liaison office submits the documents of social security ongoing records, liaison office does not have to pay social security premiums twice.

Conclusion

In my opinion to understand Turkish business environment and provide the necessary contacts, opening a liaison office is a right way to enter Turkish market.



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