Doing business in Turkey through your own legal entity subsidiary by foreigners

Most foreign investors and businesses wishing to conduct business in Turkey will establish either a Limited company or an Anonim company. This is the proper way to blend into the Turkish business environment. It is also possible to conduct business as a branch of your home entity as well. There is little difference in the taxation of two, and the difference is more in the way they seem from outside, the first being no different from any local company and the latter being a branch of a foreign entity, evident from its name. When we look at businesses that have chosen to be the branch of their parent company, we see that most of them are well-known global multinational companies. But these are only a handful, and the majority of foreign businesses have subsidiaries rather than branches.

A Turkish domiciled company, regardless of its owners, can conduct business like other companies, so alla re treated alike. Some exceptions arise when a foreign-owned Turkish company wants to acquire real estate. Due to the law, acquisition of real estate by foreigners, or companies owned by foreigners is subject to a permission by the precinct. If your company plans to acquire real estate in Turkey either for agricultural, touristic or construction purposes, plan ahead and leave room for time enough to pass through the permission system.

We are ready to advise you on the best path for conducting business in Turkey. The key here is to plan ahead.