Company Formation
Branch of a Foreign Company
A way to carry out commercial activity in Türkiye as an extension of the foreign parent, without forming a separate legal entity.
- Minimum capital
- No statutory minimum
- Paid up at incorporation
- No
- Shareholders
- at least 1
- Incorporation time
- 10–20 business days
- Foreign ownership
- 100% permitted
- Commercial activity
- Yes
Who it suits
- Groups that will trade in Türkiye but do not want a separate legal entity
- Businesses wanting to use the parent's references and balance sheet in tenders and contracting
- Short and medium-term, project-based operations
Key points
A fully authorised representative resident in Türkiye must be appointed. The branch name must include the parent company's name and head office.
Advantages
- The parent's financial strength, references and track record can be used directly
- No statutory minimum capital; a capital allocation for the activity is determined instead
- Taxed only on income generated in Türkiye (limited tax liability)
Points to watch
- The parent company is liable without limit for all debts and obligations of the branch
- Formation requires Ministry of Trade approval and takes 2–4 weeks
- Parent company documents must be apostilled and sworn-translated
- Profit repatriation additionally triggers dividend withholding tax
Compare with other structures
Let's start with a conversation
In a free 30-minute call, let's clarify which company structure and which incentives fit you. Non-binding, but useful.