Hero Service · Branch & Subsidiary
Open a Turkish branch or subsidiary of your foreign company
Branch, subsidiary, or liaison office — we walk you through the trade-offs and run the full setup. Three structures, three tax regimes, three exit paths. We pick the right one before we file.
Who this is for
- Foreign companies expanding commercial activity into Turkey
- Groups needing consolidated reporting back to a foreign parent
- Non-trading representative offices (market research, liaison, procurement)
- Foreign parents exploring free zone vs. onshore structure for a Turkish unit
What's included
- Structure memo: branch vs. subsidiary vs. liaison — tax, liability, exit
- Parent-company document set (apostille + sworn translation)
- Ministry of Industry authorization (for liaison office)
- Trade registry, tax office, chamber, fiscal seal, e-Fatura onboarding
- Parent-consolidation-ready chart of accounts (IFRS/TFRS mapping)
- Monthly bookkeeping and filings plus quarterly English management pack
- TCMB capital movement and share transfer reporting
- Intercompany pricing review and transfer pricing local file (when triggered)
How we work
- 01
Structure memo
2-page memo comparing branch, subsidiary, liaison and free zone options for your specific activity and exit plan.
- 02
Parent documents
We specify the exact list your home country must issue, apostille, and translate. One PDF checklist.
- 03
Registration
Ministry / registry filing, tax setup, seal, e-invoice. 15–25 business days depending on structure.
- 04
Operating handover
Bookkeeping live, parent reporting format agreed, filings calendar delivered.
Scope & SMMM disclosure
We deliver the full engagement under SMMM (Certified Public Accountant) scope — preparation, filings, advisory, and ongoing compliance. For YMM certification reports, statutory audits, and court representation we coordinate with vetted partners. You get one point of contact and one invoice.
Frequently asked questions
Branch or subsidiary — which is better for my group?
Subsidiaries limit parent liability and allow future spin-off or sale; branches are lighter to run but extend parent liability into Turkey. Tax-wise they can look similar, but withholding on profit repatriation and transfer pricing exposure differ. We write a 2-page memo before you decide.
Can a liaison office earn revenue in Turkey?
No. A liaison office is strictly non-commercial — market research, representation, quality control, procurement liaison. Issuing invoices or signing sales contracts will void the license. If you need revenue, use a branch or subsidiary.
How is branch profit taxed and sent back to the parent?
Branch profits are taxed in Turkey at the corporate tax rate and a branch-profit withholding applies on repatriation (treaty-reducible where a DTT exists). We apply the treaty rate using a Certificate of Residence from your home country.
Do I need transfer pricing documentation from day one?
If you have related-party transactions with the parent (management fees, royalties, intercompany sales, financing) yes — a local file is typically required annually. We prepare it in line with OECD guidelines and Turkish Ministry of Treasury format.
What about free zones?
Free zones offer corporate tax exemption for manufacturing and some service activities, plus VAT / customs advantages. Fit depends on your activity. If your business is eligible, it can cut the effective tax rate dramatically — covered in the structure memo.
Ready to start?
Book a free 20-minute call. We scope your situation and give you a clear fixed-fee quote.
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