If the Turkish presence will sell, invoice customers or earn commercial revenue, a liaison office is not the right structure. A liaison office in Türkiye is a Ministry-authorized non-commercial representative presence. A branch is a registered commercial extension of the foreign parent company.
That single distinction resolves most liaison-office-versus-branch decisions. If you need commercial activity but also want a separate Turkish legal entity, the relevant comparison becomes branch versus subsidiary.
The current Republic of Türkiye Investment Office Establishing a Business guide confirms that liaison offices require Ministry of Industry and Technology authorization and may not conduct commercial activity, while branches are commercial extensions of the foreign parent.
The first decision is whether the Turkish presence will conduct commercial activity.
Liaison Office vs Branch in Turkey: Quick Comparison
| Feature |
Liaison office |
Branch office |
| Commercial activity |
No |
Yes |
| Invoice / sales revenue |
No |
Yes, within parent-company purposes |
| Separate legal entity |
No |
No |
| Main authority |
Ministry of Industry and Technology |
Trade Registry |
| Parent-company relationship |
Non-commercial representative office |
Commercial extension of parent |
| Initial authorization period |
Up to 3 years |
Linked to parent-company existence |
| Best fit |
Research, representation, coordination |
Direct commercial operations of foreign parent |
What a Liaison Office Can Do
A liaison office is designed for approved non-commercial functions. Depending on the licensed scope, examples can include:
- market research and feasibility studies;
- representation of the foreign parent;
- promotion and relationship development within the non-commercial limits;
- supplier, distributor or group-company coordination;
- regional management or information gathering where approved;
- quality-control or similar non-commercial coordination functions where the authorization permits.
The office must stay within its declared and approved activity. It cannot quietly evolve into a sales office without changing the legal structure.
What a Liaison Office Cannot Do
- sell goods or services in Türkiye;
- issue commercial invoices for Turkish sales;
- collect commercial revenue from Turkish operations;
- operate as a substitute for a branch or subsidiary while actually conducting business;
- assume that non-commercial status removes all payroll, reporting, lease or administrative obligations.
Decision rule: if the Turkish team must generate revenue, sign revenue-generating contracts or invoice customers, move the analysis to branch or subsidiary.
What a Branch Office Can Do
A branch can conduct commercial activity in Türkiye within the purposes of the foreign parent company. It may contract, invoice, hire and operate as the parent company’s Turkish branch, subject to Trade Registry, tax, accounting, employment and sector-specific requirements.
The branch is not a separate company and has no shareholders of its own. The foreign parent remains the legal enterprise behind the Turkish branch.
Liaison Office Application: What the Ministry Wants to See
Current official guidance lists core application documents including:
- application form;
- statement describing the activities and undertaking that the office will not engage in commercial activity;
- evidence that the signatory is authorized by the foreign company;
- foreign company certificate of activity;
- financial information such as balance sheet/income statement or the relevant official alternative;
- authorization for the person or persons who will conduct liaison-office activities;
- power of attorney if another representative handles the application.
Foreign-issued documents must also be prepared for Turkish official use through the applicable apostille or consular-legalization route.
How Long Does Liaison Office Permission Take?
Current official guidance states that establishment and extension applications are concluded within 15 working days from the application date when the requested information and documents are complete and accurate.
This should be described precisely: it is a Ministry processing target for a complete application, not a promise that every end-to-end market-entry project will finish within 15 working days. Foreign document preparation, legalization, translation, address setup and corrections can add time before or around the official review.
How Long Is the Initial Liaison Office Permit?
The initial license may be granted for a maximum of three years within the declared activity. Extension is not automatic. The Ministry can assess the actual activity, business plan, future objectives, expenditure and employee count.
Official guidance also states that offices licensed for market research or promotion of the foreign company’s products or services are not extended merely as a continuation of the same activity. This makes the original activity classification strategically important.
Post-Opening Liaison Office Obligations Often Missed in Generic Guides
The liaison-office process does not end with the initial license. Current official guidance requires, among other things:
- submission of tax-registration and tenancy-agreement copies to the relevant General Directorate within the stated one-month period;
- notification of changes in address, representative or foreign company title within the applicable one-month period;
- supporting documents for the updated address or representative;
- formal closure documentation if the liaison office terminates.
- annual activity reporting: by the end of May each year, the liaison office must submit the current EK-4 Liaison Office Activities Information Form and its required attachments for the previous year’s activities to the Ministry. Under the current Regulation, failure to submit this annual package can prevent an extension request from being evaluated and the activity permit may be revoked ex officio.
This is an important difference between “getting permission” and maintaining a compliant local presence.
Branch Registration Uses a Different Authority and Document Logic
A branch is registered through the Trade Registry. The foreign parent generally needs to provide its constitutional/current-status documents, a corporate resolution opening the branch, and authority for the resident branch representative.
For the detailed process and document sequence, use How to Register a Branch Office in Turkey.
Liaison-office permission and branch registration are different legal routes with different activity limits.
Tax: Do Not Reduce the Decision to “Tax-Free vs Taxed”
A branch carries out commercial activity and therefore has Turkish tax and accounting obligations. A liaison office is non-commercial, but it can still have payroll, lease, social-security, reporting and administrative obligations.
Specific salary exemptions, withholding treatment, double-tax treaty effects and other tax consequences depend on the facts. Those issues should be reviewed with the licensed tax professionals responsible for the case rather than used as blanket marketing claims.
Employees and Foreign Work Permits
Both structures may involve staff, but establishment does not itself grant foreign employees the right to work in Türkiye. Work-permit eligibility is a separate analysis.
Current official work-permit guidance contains a specific framework for a maximum of one authorized foreign representative in qualifying liaison offices. That does not mean every liaison office automatically qualifies. Branch employees and representatives are also subject to applicable work-permit rules.
When a Liaison Office Usually Fits
- the group is testing the Turkish market before commercial launch;
- the local presence will perform research or representation only;
- the team will coordinate suppliers, partners or regional activity without selling;
- the parent wants a limited non-commercial footprint under Ministry authorization.
When a Branch Usually Fits
- the foreign parent itself wants to sell or provide services in Türkiye;
- local contracts and invoices will be issued through the parent’s Turkish branch;
- the activity remains within the parent company’s purposes;
- the group does not need a separate Turkish shareholder structure.
When Neither Is the Right Answer
If the business needs commercial activity and wants a separate Turkish legal identity, local shareholder flexibility or structurally separate assets and governance, compare a Turkish subsidiary instead.
Use the full foreign-company market-entry guide for the three-way decision.
Workon coordinates foreign-company market-entry and operational setup in Türkiye.
Last reviewed: 17 September 2026. Current Ministry rules on non-commercial liaison-office scope, the three-year initial permit and the 15-working-day complete-file review target were rechecked.
How Workon Supports Liaison Office or Branch Entry
Workon coordinates market-entry workflows for foreign companies, including liaison-office preparation, branch or subsidiary setup, registered address and workspace, foreign-document sequencing, banking application support and post-establishment tax/CPA onboarding coordination. Regulated legal, tax and accounting work is handled by appropriately licensed professionals involved in the case.
Frequently Asked Questions
A liaison office is a Ministry-authorised non-commercial presence and cannot conduct ordinary revenue-generating commercial activity. A branch is a registered commercial extension of the foreign parent company and can conduct business within the parent’s purposes, subject to Turkish tax, accounting, employment and sector rules.
No. A liaison office must remain within its approved non-commercial scope. If the Turkish presence needs to sell, issue invoices, enter revenue-generating contracts or collect commercial income, the analysis should move to a branch or subsidiary.
No blanket statement is safe. A liaison office is non-commercial, but it can still have payroll, lease, social-security, reporting and administrative obligations. Salary exemptions, withholding and treaty effects depend on the facts and should be reviewed separately.
Current official guidance allows an initial permit of up to three years. For a complete and accurate application, the Ministry states a 15-working-day processing framework, but foreign document preparation, legalisation, translation, address setup and corrections can add time around the official review.
No. A branch has no separate legal personality or shareholders of its own; it is the foreign parent operating through a registered Turkish extension. The parent remains directly connected to the branch’s obligations.
No. Establishment and work authorisation are separate. A foreign representative or employee must satisfy the applicable work-permit or exemption rules, including any special framework that may apply to a qualifying liaison office representative.
