Finlexia is a globally recognized Turkish Accounting Firm with a long record of excellence and professional leadership in Istanbul, Turkey. Our Turkish company formation team is prepared to handle your company formation needs in Turkey and help you Open Representative Office in Turkey. Our Turkish company formation team is experienced in liaison office formation, branch office formation, free trade zone company formation, joint stock company, joint venture formation, limited liability company formation, holding company formation, and company management and governance.
Open Representative Office in Turkey
Companies established in accordance with laws of foreign countries can open liaison offices in Turkey provided that those offices do not carry out any commercial activities in Turkey. So as to open a liaison office in Turkey, the relevant company has to apply to the Directorate General of Foreign Investments of the Undersecretariat of Treasury.
Applications for establishment and extension are to be finalized within 5 days following the application provided that the necessary documents are complete and proper. Applications of foreign companies to establish liaison offices so as to operate in sectors subject to special legislation such as money and capital markets, insurance, etc. are assessed by the relevant regulatory and supervisory authorities.
Turkish Liaison Office Formation Application Documents
The following documents have to be submitted to the Directorate General for establishing a liaison office in Turkey:
- The original copy of the Certificate of Activity approved by the related Turkish Consulate or approved in accordance with the provisions of the Convention on the Abolishing the Requirement of Legalization for Foreign Official Documents Approval Obligation prepared on the basis of the Hague Conference on International Private Law,
- Operational report or balance sheet and income statement of the main company,
- The original copy of the power of authority issued to the name of the person who is appointed to carry out the operations of the liaison office,
- The original copy of power of attorney in case another person will carry out the establishment transactions of the liaison office.
After an establishment permit is granted by the Directorate General of Foreign Investments, the relevant Liaison office is supposed to register to the local tax office and to send a copy of the tax office registration document to the Directorate General latest within 1 month.
Periodically Informing the Undersecreariat of Treasury
Liaison offices are supposed to provide the Directorate General with the following every year latest until the end of May so as to inform the authority about their activities of previous years. Documents certifying that the previous year’s expenses of the office have been covered by foreign currency transferred from abroad have to be enclosed as well.
Duration of Operation Permits and the Extensions
Liaison offices are granted operation permits for 3 years at most. For extensions, successive extensions of a maximum of 3 years each may be granted by taking into consideration the activities of previous years and plans and objectives for the future.
Termination of Activities
In case a liaison office terminates its activities, the termination and examination of business notes to be received from the related tax office has to be submitted to the Directorate General of Foreign Investments. Liaison offices cannot claim any money transfer except the residue arising due to termination or liquidation. The Undersecretariat might cancel the permits of liaison offices in case the offices are found to have violated the legislation.
Set up Company in Turkey
Today, clients are faced with unprecedented challenges as new laws and regulations are changing the way the corporate world works. Finlexia Accounting Firm has one of the preeminent corporate governance practices in Turkey, drawing upon the expertise of our corporate, securities, governance, litigation, and compensation specialists to provide our clients with the information and analysis needed to respond to a rapidly changing regulatory environment.
We regularly advise clients with respect to the formation of companies. Our services with respect to company formation include advising and drafting documents in connection with the formation of corporations, limited liability companies, and liaison offices. We provide targeted advice with respect to both the choice of entity and Turkish laws under the entity is to be organized.
Turkish Company Formation Services
Our company formation team is experienced in the formation and governance of;
- Branch Office Establishment
- Liaison Office establishment
- Limited Liability Company establishment
- Joint Stock Company establishment
- Free Trade Zone Company establishment
- Joint Venture establishment
in Turkey. We maintain an unsurpassed practice of counseling and representing large and small companies and boards of directors regarding entity formation and corporate governance matters. We advise our public and private clients on all matters concerning the formation of new entities from corporate formalities to tax issues.
We also advise our company clients on a full range of new laws and related matters, as well as other corporate governance rules. Our clients range from small private companies with no internal legal staff to medium size companies with their own internal legal staff. For each of our clients, we tailor our approach to that client’s unique requirements.
Open Representative Office in Turkey Free Trade Zone
A Turkish Free Trade Zone is a specially designed production site that aims at increasing export-oriented investment and production in Turkey, accelerating the entry of foreign capital and technology into Turkey, enhancing productivity and economies of scale, and increasing the utilization of external financial sources and trade opportunities. Although a Free Trade Zone is within the boundaries of the Republic of Turkey, it is treated as if it were a territory abroad. National regulations relating to foreign trade, financial and economic areas are partially applicable to Free Trade Zones. There are 20 Free Trade Zones in Turkey and their annual trade volume amounted to more than $ 23 billion in the year 2005.
Steps to Open Representative Office in Turkey Free Trade Zone
We maintain an unsurpassed practice of counseling and representing large and small companies and boards of directors regarding company formation in a Turkish Free Trade Zone and governance matters. We advise our clients on all matters concerning the formation of new entities from corporate formalities to tax issues.
We regularly advise clients with respect to the formation of companies. Our services with respect to company formation include advising and drafting documents in connection with the formation of corporations, limited liability companies, and Turkish liaison and branch offices. We provide targeted advice with respect to both the choice of entity and Turkish laws under the entity is to be organized.
Our clients range from small private companies with no internal legal staff to large companies with their own internal compliance teams. For each of our clients, we tailor our approach to that client’s unique requirements.
Free Trade Zone Company Tax Incentives
- Production companies in one of the Turkish Free Trade Zones are exempt from both corporate and income taxes
- Goods imported from abroad are exempt from customs duty. In addition, there are no restrictions on the age/model of machinery to be imported from abroad, and these items are exempt from both VAT and customs duty
- Goods purchased in Turkey by companies located in a Free Trade Zone are exempt from VAT
- Companies based in a Free Trade Zone can keep their products in a designated duty-free storage area for an indefinite period of time and they can export the products in lots at any time (at the time of export, a customs duty for the lots is paid)
- Energy, water, and telephone utilities supplied within a zone are all exempt from special consumption tax (OTV) and VAT
- 100% exemption from customs duties and other assorted duties.
- 100% exemption from corporate income tax for manufacturing companies.
- 100% exemption from value-added tax (VAT) and special consumption tax.
- 100% exemption from stamp duty for applicable documents.
- 100% exemption from the real estate tax.
- 100% income and corporate tax exemption for certain logistics services to be offered at the FZs, provided that they are export-oriented.
- 100% exemption from income tax on employees’ wages (for companies that export at least 85% of the FOB value of the goods they produce in the FZs.
- Goods may remain in FZs for an unlimited period.
- Companies are free to transfer profits from FZs abroad as well as to Turkey, without restrictions.
- Exemption from title deed fees when acquiring and selling a property.
- VAT exemption during construction, design, settlement, and approval processes.
- Ready infrastructure exempt from VAT and other taxes.
- Import permit for second-hand used machinery.
Free Trade Zone Company Operating Licence
In order to operate in a Turkish Free Trade Zone, companies need an Operating Licence which is granted by the Regulator mentioned above. The firms which are found appropriate to get an Operating Licence and which intend to rent an open area must sign a rental contract with the Zone Operator, or Founder & Operator. Firms intending to rent a closed area must sign a rental contract with one of the users holding Renting Operating Licence. Upon the submission of a copy of the rental contract approved by the related Zone Directorate to the regulator, an operating license is granted to the applicant.
List of Turkish Free Trade Zones
|FREE ZONES IN TURKEY||DATE OF EST.|
|1||MERSIN FREE ZONE||1985|
|2||ANTALYA FREE ZONE||1985|
|3||AEGEAN FREE ZONE||1987|
|4||ISTANBUL ATATURK AIRPORT FREE ZONE||1990|
|5||TRABZON FREE ZONE||1990|
|6||ISTANBUL THRACE FREE ZONE||1990|
|7||ADANA YUMURTALIK FREE ZONE||1992|
|8||ISTANBUL INDUSTRY & TRADE FREE ZONE||1992|
|9||MARDIN FREE ZONE||1994|
|10||SAMSUN FREE ZONE||1995|
|11||EUROPE FREE ZONE||1996|
|12||RIZE FREE ZONE||1997|
|13||KAYSERI FREE ZONE||1997|
|14||IZMIR FREE ZONE||1997|
|15||GAZIANTEP FREE ZONE||1998|
|16||TUBITAK-MRC FREE ZONE||1999|
|17||DENIZLI FREE ZONE||2000|
|18||BURSA FREE ZONE||2000|
|19||KOCAELI FREE ZONE||2000|
Reach us to Open Representative Office in Turkey
Since its foundation, Finlexia Turkish Accounting Firm has been the choice of numerous clients in Turkey. Thanks to its nationally recognized accountants and accounting services, our accounting firm is now one of the leading accounting firms in Istanbul, Turkey. You may reach our accountants and lawyers to the Open Representative Office in Turkey by sending an email or filling in Contact Form on the Contact page.