Liaison Office in Turkey: Requirements, Benefits & Setup

A liaison office in Turkey provides foreign companies with a practical way to establish a local presence, conduct market research, develop business contacts and represent their interests without engaging in commercial sales in Turkey.

A liaison office, also known as a representative office, operates on a non-commercial basis. It can support market research, communication, business development and representation activities, but it cannot conduct commercial transactions or generate commercial revenue in Turkey.

Establishing a liaison office requires authorization from the Ministry of Industry and Technology and compliance with applicable tax, employment, payroll, social security and reporting requirements.

Quick Answer: What Is a Liaison Office in Turkey?

A liaison office in Turkey is a non-commercial office established by a foreign company for activities such as market research, representation, communication and business development. It cannot conduct commercial sales or generate commercial revenue in Turkey.

A liaison office can employ Turkish and foreign personnel, maintain a local office and bank account, and receive operational funding from its foreign parent company. Its establishment requires authorization from the relevant Turkish authority and ongoing compliance with applicable regulations.

A&M Consulting Co. provides support for liaison office establishment, tax registration, accounting, payroll, SGK compliance, work permits and ongoing regulatory requirements in Turkey.

What Are the Benefits of a Liaison Office in Turkey?

A liaison office can be useful for foreign companies that want to understand the Turkish market before establishing a commercial operation.

Key advantages include:

• Establishing a local presence in Turkey
• Conducting market research
• Evaluating business and investment opportunities
• Developing local business contacts
• Representing the foreign parent company
• Supporting communication with customers, suppliers and business partners
• Promoting the foreign company’s activities within the permitted scope
• Employing personnel for permitted activities
• Maintaining a local office and bank account
• Assessing the Turkish market before establishing a commercial company or branch

One important advantage is that a liaison office provides a way to establish a presence in Turkey without immediately creating a commercial operating structure.

However, the office must remain within its approved non-commercial scope.

What Can a Liaison Office Do in Turkey?

The permitted activities depend on the scope declared in the application and approved by the relevant authority.

Typical activities may include:

• Market research
• Feasibility studies
• Business development
• Representation
• Communication and coordination
• Monitoring developments in the Turkish market
• Identifying potential customers and business partners
• Gathering information about competitors and market conditions
• Promoting the foreign company’s products or services within the permitted non-commercial framework

A liaison office should not undertake activities that effectively constitute commercial operations in Turkey.

What Can a Liaison Office Not Do?

A liaison office is fundamentally different from a branch or Turkish commercial company because it cannot conduct commercial activities in Turkey.

A liaison office cannot generally:

• Sell products or services in Turkey
• Generate commercial revenue
• Issue commercial sales invoices
• Conduct commercial sales transactions
• Operate as a revenue-generating business
• Carry out activities outside its approved scope

If a foreign company intends to generate revenue from customers in Turkey, it should evaluate whether a branch office or Turkish company would be more appropriate.

Liaison Office Establishment Requirements in Turkey

Foreign companies established under the laws of another country can apply to establish a liaison office in Turkey by obtaining authorization from the Ministry of Industry and Technology.

The application is submitted to the General Directorate of Incentive Implementation and Foreign Investment (GDIIFI).

Typical documentation includes:

• Application form
• Statement describing the activities to be conducted
• Undertaking that the liaison office will not engage in commercial activities
• Proof of authorization of the person signing the application
• Certificate of activity of the foreign parent company
• Foreign company’s activity report or balance sheet and income statement
• Authorization document for the appointed liaison office representative
• Power of attorney, where applicable

Documents issued outside Turkey generally need to be appropriately apostilled or legalized and officially translated into Turkish, with notarization where required.

How to Establish a Liaison Office in Turkey

The establishment process can generally be organized into the following steps:

1. Determine the Permitted Activities

The foreign company should first determine exactly what the liaison office will do in Turkey.

The proposed activities should remain clearly within the non-commercial framework.

2. Prepare the Foreign Company’s Documents

The required corporate documents are collected from the foreign parent company.

Documents issued abroad should be prepared in accordance with Turkish legalization, apostille, translation and notarization requirements.

3. Prepare the Liaison Office Application

The application documents, activity statement, undertaking and authorization documents are prepared.

4. Submit the Application

The application is submitted to the General Directorate of Incentive Implementation and Foreign Investment within the Ministry of Industry and Technology.

Where the required information and documents are complete and accurate, establishment applications are concluded within 15 working days.

5. Complete Tax Registration

After authorization, the liaison office must complete the relevant tax registration procedures.

A copy of the tax registration document and the office tenancy agreement must be submitted to the relevant General Directorate within the prescribed period.

6. Set Up the Office and Bank Account

The office can then establish its local operational infrastructure, including its office address, bank account and accounting records.

7. Complete Employee and SGK Procedures

If the liaison office employs personnel, the relevant employment, payroll and social security procedures must be completed.

See our guide to the Turkish Social Security System for further information.

Employees and Payroll for a Liaison Office in Turkey

A liaison office can employ Turkish and foreign personnel to carry out its permitted activities.

Employees working in Turkey may be subject to applicable employment, payroll and social security requirements.

SGK Registration

Employees working under an employment relationship in Turkey generally need to be registered with SGK.

The liaison office may therefore need to:

• Register employees with SGK
• Calculate employer and employee contributions
• Calculate unemployment insurance contributions
• Submit applicable payroll and SGK declarations
• Pay statutory contributions
• Complete employee hiring and termination notifications

For professional payroll support, see our Payroll Services in Turkey page.

Income Tax and Payroll

The income tax treatment of employee salaries depends on the circumstances of the employee and the source and payment structure of the salary.

Certain salaries paid by a foreign employer from income generated outside Turkey may qualify for specific income tax treatment if the statutory conditions are satisfied.

For further information, see our guide to Income Tax in Turkey.

Foreign Employees and Work Permits

Foreign nationals employed by a liaison office may require a Turkish work permit.

For liaison offices falling within the Qualified Foreign Direct Investment framework, the Ministry of Labor and Social Security provides a specific work permit route for up to one foreign employee holding an authorization certificate from the overseas parent company, subject to the applicable conditions.

The work permit position should therefore be reviewed before employing foreign personnel.

Taxation of a Liaison Office in Turkey

A liaison office that operates strictly within its approved non-commercial activities does not operate like a commercial taxpayer generating business profits in Turkey.

The Investment Office’s guidance distinguishes liaison offices from branches and subsidiaries and states that liaison offices are not obliged to pay taxes in Turkey in relation to their permitted non-commercial activities.

However, tax compliance should not be confused with commercial income taxation. A liaison office may still have registration, payroll, withholding, employee-related and other statutory obligations.

Depending on the circumstances, relevant areas may include:

• Income tax
• Withholding tax
• VAT
• Employee payroll taxation
• Stamp tax
• SGK obligations

For related information:

• Income Tax in Turkey
• Withholding Tax in Turkey
• VAT in Turkey
• Corporate Gains Tax

The exact tax treatment should be assessed according to the actual activities and transactions of the liaison office.

Bank Account for a Liaison Office in Turkey

A liaison office can establish a Turkish bank account for its operational activities.

Because it cannot generate commercial revenue in Turkey, the office is generally funded by its foreign parent company.

Funding may be used for legitimate operating expenses such as:

• Office rent
• Employee salaries
• SGK contributions
• Accounting and bookkeeping services
• Professional services
• Utilities
• Communication expenses
• Other permitted operating costs

Banks may request documents concerning the liaison office, its foreign parent company, authorized representative and source of funds.

Cost of Establishing and Operating a Liaison Office in Turkey

The total cost depends on the office’s activities, location, number of employees and required professional services.

Typical costs may include:

• Government and authorization expenses
• Notarization and translation
• Apostille or document legalization
• Office rent
• Accounting and compliance services
• Payroll services
• SGK contributions
• Employee salaries
• Work permit costs for eligible foreign employees
• Banking costs
• Professional advisory fees

Employee salaries, employer SGK contributions, office rent and professional services should be considered recurring operating costs, rather than one-time establishment expenses.

Liaison Office Authorization Period and Renewal

The initial liaison office authorization is granted for a maximum of three years, within the scope of the activities declared in the application.

A liaison office wishing to extend its operating period must apply before the existing authorization expires.

The extension may be assessed based on factors including:

• Activities carried out during the previous year
• The foreign company’s future business plan
• Future objectives in Turkey
• Existing and anticipated expenditure
• Number of employees

Importantly, the current Investment Office guidance states that the operating period of liaison offices authorized specifically for market research or promotion of foreign company products or services is not extended.

Therefore, the intended activities should be carefully considered when the initial application is prepared.

Ongoing Compliance Requirements

Establishment is only the first stage of operating a liaison office in Turkey.

The office should continue to:

• Remain within its approved non-commercial activities
• Maintain its registered address
• Keep appropriate records of parent-company funding
• Comply with applicable tax registration and reporting requirements
• Maintain payroll and SGK records where employees are hired
• Maintain employment documentation
• Keep authorization documents up to date
• Monitor the authorization expiry date
• Report relevant changes to the competent authority

Changes involving the liaison office’s representative or the foreign company’s title must be notified within the applicable period. The current Investment Office guidance specifies a maximum of one month for these notifications.

Liaison Office vs. Branch Office vs. Turkish Company

Foreign companies should select their Turkish structure according to their intended activities.

A liaison office is appropriate for non-commercial market presence and research.

A branch office can conduct commercial activities as an extension of the foreign parent company.

A Turkish company provides a separate legal entity for commercial operations.

Companies planning commercial operations can review our Company Registration in Turkey guide, while companies considering a branch can see our Branch Office in Turkey guide.

Liaison Office Services in Turkey

Establishing and maintaining a liaison office involves authorization, tax registration, office setup, employee compliance and ongoing administrative requirements.

A&M Consulting Co. can support foreign companies with:

• Liaison office establishment
• Authorization application
• Preparation of application documents
• Apostille and notarization coordination
• Turkish translation
• Tax registration
• Office address setup
• Accounting and compliance
• Payroll
• SGK compliance
• Foreign employee work permit support
• Bank account opening assistance
• Ongoing regulatory compliance
• Authorization extension procedures

Our objective is to help foreign companies maintain their Turkish liaison office within its approved non-commercial framework.

Sources & References

• Invest in Türkiye – Establishing a Business — Liaison office establishment requirements, required documents, authorization period, application process and extension rules.
• Invest in Türkiye – Legal Guide to Investing in Türkiye — Legal framework concerning liaison offices, their non-commercial nature and establishment requirements.
• Invest in Türkiye – Work Permit Guide — General requirements and procedures for foreign nationals working in Türkiye.
• Invest in Türkiye – How We Help — Official information on investment procedures, business establishment, work permits and regulatory processes.