Company Formation
Liaison Office
For market research, representation and coordination; commercial activity and earning income are prohibited. In return it offers significant tax advantages.
- Minimum capital
- No statutory minimum
- Paid up at incorporation
- No
- Shareholders
- at least 1
- Incorporation time
- 15–30 business days
- Foreign ownership
- 100% permitted
- Commercial activity
- No
Who it suits
- Companies wanting to test the Turkish market before selling
- Groups running supplier audits, quality control and sourcing coordination
- Multinationals establishing a regional management centre
Key points
Permission is granted by the Ministry of Industry and Technology, General Directorate of Incentive Implementation and Foreign Investment. An activity report must be submitted by the end of May each year.
Advantages
- No corporate tax liability arises, as no commercial income is earned
- Staff salaries paid from foreign currency brought in from abroad are exempt from income tax
- No VAT registration
- Low setup cost and no capital requirement
Points to watch
- No commercial activity whatsoever: no invoicing, no income
- All expenses must be funded in foreign currency from abroad
- Permission is granted initially for up to three years; extension depends on the activity report
- If the scope is found to have been exceeded, the permit is revoked and retrospective tax assessments may follow
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.