Liaison Office

A liaison office is an office opened by a foreign company in Turkey to get to know the market, carry out promotion and build connections without conducting commercial activity. It has no separate legal personality and requires permission from the Ministry of Industry and Technology.

Permission and Term

A liaison office is opened by applying to the Ministry of Industry and Technology under the implementing regulation of Foreign Direct Investment Law No. 4875. Initial permission is granted for up to three years. Offices wishing to extend must apply before the term expires; the Ministry decides taking into account the office’s past activities, the company’s business plan for Turkey, its expenditure and number of staff.

What It Can and Cannot Do

• Can: Market research, promotion, liaising with customers and suppliers, providing information to the head office.
• Cannot: Make sales, issue invoices, sign contracts, earn income or carry out any other commercial activity.

All of the office’s expenses are covered by foreign currency brought in from the company abroad.

Obligations

• Submitting an activity report on the previous year’s activities to the Ministry on time every year; if not, extension requests may not be considered,
• Social security and tax obligations if staff are employed,
• Compliance with data protection law if personal data is processed, including VERBİS registration where applicable.

Foreign companies wishing to start commercial activity should open a branch or set up a joint stock company or limited liability company.