Liaison Office, Branch Office or Company: Which Suits You?

Published: 10 September 2026 · Reading time approximately 6 minutes

A foreign company considering entry into Türkiye has three basic structures before it: a liaison office, a branch office and an independent company (usually a limited or joint stock company). The choice should be driven less by “which is cheaper” than by “what will you be doing in Türkiye”.

Liaison office

A liaison office is the foreign company's representation and promotion office in Türkiye. It is established with the permission of the Ministry of Industry and Technology.

• It cannot carry out commercial activity. It cannot issue invoices, make sales or earn income in Türkiye.
• All its expenses are met in foreign currency by the parent company abroad.
• The permit is granted for a fixed term; it can be extended subject to the activity report.
• It can employ staff; a work permit is required for foreign personnel.

Who it suits: companies that want to get to know the market, build supplier and customer relationships, or run quality control or technical support — but that will not yet be selling in Türkiye.

Branch office

• It has no separate legal personality; it is an extension of the parent company and liability rests with the parent company.
• It can carry out commercial activity, issues invoices and is a taxpayer in Türkiye.
• It is registered with the trade registry; a branch manager resident in Türkiye is appointed.
• The parent company's registry record, articles of association and the resolution of its authorised body are submitted apostilled and with sworn translations.

Who it suits: companies that want to operate under the same trade name and see no drawback in a direct link with the parent company.

Company (limited or joint stock)

• It has an independent legal personality ; as a rule liability is limited to the company's assets.
• It can carry out any kind of commercial activity.
• It can be set up with 100% foreign capital; Law No. 4875 provides for equal treatment of foreign and domestic investors.
• Being a shareholder or a manager can serve as a basis in work permit and residence processes.
• Once the documents are ready, this is the structure that is fastest to establish.

Who it suits: investors who will sell in Türkiye, employ staff, bid for tenders or apply for incentives, and who want to stand legally separate from the parent company.

Comparison at a glance

• Commercial activity: Liaison office — no · Branch office — yes · Company — yes
• Legal personality: Liaison office — none · Branch office — none (tied to the parent company) · Company — yes
• Income tax liability: Liaison office — as a rule none · Branch office — yes · Company — yes
• Permit / registration authority: Liaison office — Ministry of Industry and Technology · Branch office and company — Trade Registry Office
• Duration: Liaison office — fixed-term permit, subject to extension · Branch office and company — indefinite
• Foreign personnel: a work permit is required in all three

The cost of choosing wrongly

• Setting up a liaison office when you plan to sell, and having to form a company a year later
• Failing to file the liaison office's activity report on time and putting the extension at risk
• Bringing the parent company's documents without an apostille when setting up a branch office
• Drafting the field of activity too narrowly and incurring amendment costs later
• Not adding the work permit timeline for foreign personnel to the formation schedule

There is no such procedure as “converting” a liaison office into a company. When you want to move into sales, a new company is formed and the liaison office is closed — which means a second set of formation costs.

We set out the formation steps for these structures in detail on our branch office and liaison office and company formation for foreign nationals pages. If you will be employing foreign personnel in your new structure, you also need to add the work permit consultancy step to your schedule.