We invite international entrepreneurs to explore this article with information about how to open a branch in Turkey in 2026. Our local specialists can guide them through all the procedures and regulations imposed for setting up such an entity.
| Quick Facts | |
|---|---|
| Applicable legislation | For foreign countries |
Best used for | – banking, – insurance, – financial operations |
Minimum share capital | No |
| Time frame for the incorporation (approx.) | Around 4 weeks |
| Management | Local |
| Legal representative required | Yes |
| Local bank account | Yes |
| Independence from the parent company | Dependent on the parent company |
| Liability of the parent company | Full liability on the branch office's debt and obligations |
| Corporate tax rate | 25% (standard), 30% (for financial institutions) |
| Possibility of hiring local staff | Yes |
| Definition of a branch in Turkey | An extension of a foreign company that operates in Turkey. |
General documents required | – power of attorney, – identity proof of the representative, – address proof, – identification details for parent company, – parent company’s Memorandum and Articles of Association, – resolution to open a branch, etc. |
Documents language | Turkish |
| Setting up multiple branches (YES/NO) | YES |
| Steps of opening a branch | – determine name, – prepare documents, – open bank account, – register with the Trade Register and Chamber of Commerce, – apply for tax numbers |
| Residency requirement for representative (YES/NO) | YES |
| Remote registration | We handle company incorporation in Turkey and branch office registrations remotely through power of attorney. |
| VAT rates | – 20% (standard) – 10% and 1% (reduced) |
| Other taxes in Turkey | – withholding tax, – taxes associated with payroll in Turkey, – property tax, etc. |
| Branch name | The same name as the parent company |
| Alternatives to a branch office | – subsidiary, – representative office |
| Number of double taxation treaties signed by Turkey | 77 (approx.) |
| Differences from a subsidiary | – not a legal entity, – liability of the parent company, – different registration process, etc. |
| Advantages of opening a Turkish branch | – access to new market, – business and investment opportunities, – low incorporation costs, – faster registration process than setting up a company in Turkey, – tax benefits, – company expansion, etc. |
| Assistance and additional services | Our team provides assistance for company formation in Turkey and branch registration. We can also refer you to our accountants in Turkey for tax services. |
What are the characteristics of branches in Turkey?
- act as extensions of foreign enterprises,
- the operations carried out must be the same as those of the parent firm,
- branches in Turkey must operate under the same name as the foreign company,
- they do not have separate legal personalities, etc.
Who can start branches in Turkey?
Any foreign entrepreneur who wants to expand their business in Turkey through branches.
What is the institution that approves branches in Turkey?
Ministry of Trade, through the Directorate General for Domestic Trade in Turkey.
Can a branch be 100% foreign owned in Turkey?
Yes.
What are the conditions to set up a branch in Turkey?
- appoint a local representative (Who can be one of our Turkish agents),
- get approvals from the Ministry of Trade,
- prepare the documents,
- open a bank account in Turkey,
- register for taxation,
- obtain the NACE code, etc.
NOTE! The NACE code is a 6-digit number that classifies the economic activities of a branch in Turkey. Our CPA accountants in Turkey can help you obtain such a code from the Union of Chambers and Commodity Exchanges of Turkey – TOBB.
What documents are solicited for branch registration in Turkey?
- a declaration or resolution board stating that the parent company decides to open a branch in Turkey,
- IDs/passports of shareholders and the representative agent,
- Articles of Association,
- completed registration form provided by the Turkish Trade Register, etc.
IMPORTANT! All foreign documents must be translated into Turkish, notarized, and apostilled.
What is the proper structure for setting up a branch in Turkey?
The limited liability company, known as a “Limited Şirket” or “Ltd. Şti in Turkey.
Is a minimum share capital required for opening a branch in Turkey?
No.
We have also created an infographic with the main advantages of opening a Turkish branch office:
Are there any extra requirements for setting up a branch in Turkey?
Yes, the branch must also be registered with the Turkish Chamber of Commerce.
Where do I register a branch in Turkey for tax purposes?
With the local Trade Registry Directorate (Ticaret Sicili Müdürlüğü).
Can foreigners open more than just one branch in Turkey?
Absolutely!
Can branch owners in Turkey hire foreign personnel? Is personnel relocation possible?
Yes, as long as the immigration policies are respected.
Who manages a branch in Turkey?
The branch manager appointed by the foreign company.
Feel free to explore this video presentation with details on this topic:
How is the taxation of branches in Turkey?
- 25% corporate income tax,
- 10%-15% withholding tax on branch profits remitted to the foreign company,
- 20% VAT or lower rates, depending on the activities of the branch in Turkey.
What are the purposes of a branch in Turkey?
- can operate directly in the Turkish market,
- they are fully controlled by the parent company,
- can be involved in various projects, etc.
What is the time frame to set up a branch in Turkey in 2026?
About 3-4 weeks.
What are the advantages of a branch in Turkey?
- fast and simple incorporation,
- beneficial from a tax point of view,
- flexible in commercial activities,
- no restrictions on hiring foreign staff, etc.
Are you ready to set up a branch in Turkey in 2026 and need help? Feel free to discuss further details with our specialists in opening a business in Turkey. Contact us today!