Turkey has regulated many issues about foreign invesment to make it attractive for foreign investors. In line with this idea, foreign investors have many alternative options to work up a connection with local market in Turkey. One of the easy way for this, is establishing a branch, instead of founding a company in Turkey. Therefore, establishing a branch of a parent company brings down the cost in comparison with incorporation, naturally entrepreneurs could save more time than establishing an incorporation. Moreover, there are many other advantages of opening a branch office in Turkey, besides two of these.
Another advantage of the branch offices is that having autonomous capital and accounting to carry out commercial transactions with third parties, although they are closely associated with the parent company in respect of internal management. This means that rights, debts, profits and losses of the branch offices are taken on by the parent company. By the way, the branch offices in Turkey have been allowed to engage in activities of their parent companies.
To register of a branch office is starting with resolution of the board of directors of the parent company. The resolution concerning the establishment of a branch office is required to be submitted to the Ministry of Industry and Commerce. Moreover, the parent company has to registrate to the Trade Registry with the required documents. These documents ;
- Director’s resolution concerning the establishment of a branch office in Turkey
- Passport copy of the person authorised to represent and bind the branch (copy of the identity and residence certificate for Turkish citizens)
- A notary certified signature of the persons authorised to represent the branch
- Proxy that will function as a signature circular granted to the authorised representative in Turkey.
- Document from the Chamber of Commerce of the Parent Company
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