Business Structures in Turkey
1. Representative Office
A representative office allows companies to establish a minimal presence in Turkey, focusing on non-revenue-generating activities such as market research, promotional efforts, and liaison with local partners.
Key Features:
- Restricted to non-transactional activities (no sales or contracts).
- Exempt from corporate taxes, as no income is generated locally.
- Simple and quick setup process, ideal for exploratory market entry.
ÖzbekCPA’s Role:
We provide end-to-end support for setting up your representative office, ensuring compliance with Turkish regulations while you focus on building connections and understanding the market.
2. Branch Office
A branch office serves as an extension of the parent company, enabling core activities such as sales and transactions while operating under the parent company’s legal and financial structure.
Key Features:
- Not a separate legal entity; the parent company assumes all liabilities.
- Requires tax registration and compliance with local laws.
- Allows for revenue generation and contractual engagements in Turkey.
Considerations:
The lack of legal separation means that liabilities in Turkey directly affect the parent company.
ÖzbekCPA’s Role:
From registration to ongoing operational support, we streamline the process of establishing and managing your branch office, ensuring that all legal and financial requirements are fully met.
3. Foreign Subsidiary
A foreign subsidiary is a separate legal entity, providing autonomy and liability protection while allowing full-scale operations in Turkey.
Key Features:
- Limited liability for the parent company.
- Eligible for local tax benefits and incentives.
- Requires a more involved setup process, including minimum capital requirements and multiple registrations.
Who Should Consider This?
Businesses planning long-term operations in Turkey with significant local autonomy and control.
ÖzbekCPA’s Role:
We oversee the entire process — from drafting legal documents and obtaining permits to tax registration and operational support.
Comparing Structures: Key Points
| Feature | Representative Office | Branch Office | Foreign Subsidiary |
|---|---|---|---|
| Legal Entity | Not separate | Not separate | Separate |
| Liability | Parent company liable | Parent company liable | Limited liability |
| Activities Allowed | Non-transactional | Revenue-generating | Full operations |
| Tax Obligations | None | Local taxes | Local taxes |
| Setup Complexity | Low | Moderate | High |
Employer of Record (EOR): An Alternative Approach
For businesses hesitant to commit to a full entity setup, an Employer of Record (EOR) solution offers a practical alternative.
How It Works:
- A local partner employs staff on your behalf, ensuring compliance with Turkish laws.
- Your organization retains full control over employee roles and operations.
- The EOR handles payroll, benefits, and tax filings, reducing administrative burdens.
Advantages:
- Rapid market entry without lengthy setup processes
- Reduced liability and compliance risks
- Flexibility to transition to a subsidiary or branch as your business grows
ÖzbekCPA’s Role:
We offer tailored EOR solutions that enable you to focus on expanding your operations while we manage the complexities of local compliance.
Why Choose ÖzbekCPA?
At ÖzbekCPA, we are committed to being more than just a service provider. We are your trusted partner for navigating Turkey’s business landscape.
What We Offer:
- Comprehensive Expertise – Over 20 years of experience supporting international clients across diverse sectors.
- End-to-End Support – From entity selection and registration to compliance and operational management, we cover every aspect.
- Regulatory Knowledge – Deep understanding of Turkish tax laws, labor regulations, and corporate compliance.
- Tailored Solutions – Customized services aligned with your business goals and industry requirements.
- Ongoing Advisory – As your business evolves, we adapt our services to meet your changing needs.
Your Journey to Success in Turkey Starts Here
Setting up a business in Turkey can be complex, but with the right partner, it becomes an opportunity to thrive. At ÖzbekCPA, we combine local expertise with a global perspective to deliver solutions that support your growth.
Whether you’re exploring market entry through a representative office, engaging in commercial activities with a branch office, or establishing a fully-fledged subsidiary, our team is here to guide you.
Contact ÖzbekCPA today to discuss your expansion plans and discover how we can help you achieve long-term success in Turkey. Together, we’ll build the foundation for your growth.
