KILIÇ & Partners Law Firm Istanbul provide legal advice, risk analysis and management, to both Turkish and foreign companies who are willing to invest or set up a subsidiary, form a new company or branch office, to enter the Turkish market and expand their business in general. Turkey has a constantly improving foreign investment climate to encourage more investment by way of private individual, public and corporate entities with various government backed incentives, including state aid, VAT and other tax exemptions for industry specific benefits. Under such circumstances, investing in Turkey has become appealing and profitable for foreign investors and companies, wishing to establish themselves in Turkey.

 

Thinking of Investing or Doing Business in Turkey?

 

There are five benefits you need to know

1. The Country’s investment friendly profile 

2. Many Tax and non-tax incentives for foreign investors

3. Simple Ways to establish your business in Turkey

4. Residence and Work formalities

5. Arbitration Awards in Turkey

 

 

There are several ways the international companies may establish themselves in Turkey. 

 

Local Turkish Subsidiary

 

• Foreign companies may choose to set up 100%-owned subsidiaries in Turkey either in the form of a joint stock company (AS) or a limited liability company (Ltd Sti). Such subsidiaries are treated in the same way as the resident companies.

• Subsidiaries may be in the form of a joint venture with a Turkish or international partner. There is no requirement for a local shareholding or directorship for establishing a subsidiary.

 

A Branch Office

 

• Foreign companies can establish a branch in Turkey. The parent company is required to allocate capital to the branch office at the establishment phase, although there is no minimum capital amount required. Branches are established according to the provisions of the Turkish Commercial Code with the approval from the Ministry of Industry and Trade.

 

A Representative office

 

• Representative offices of foreign companies are not permitted to perform any commercial activity in Turkey. Their activities are limited to representation of a foreign company in Turkey and providing information. Expenses of the representative office must be financed by the head office abroad.

• The representative office may not generate any income from its activities in Turkey, just as it is not itself subject to corporate income tax or personal income tax. However, it should maintain statutory books and provide any necessary information to the authorities when required.

• Employees of a representative office are not subject to income tax either, provided that their salaries are paid from abroad in foreign currency.

 

Our team is experienced in providing legal assistance to companies, with implementation of their investments, business plans and initiatives, including all aspects of direct and indirect investment projects, investment contracts and approvals from the Turkish authorities. We also assist in finding new investment opportunities and solutions, reinvesting profits, intra-company loans, tax issues, and all legal issues associated with setting up a company, branch or subsiduary office within Turkey.  

 

 

For more Information on Foreign Investments, please consult a member of our International Legal Teams