Foreign corporations expanding to Turkey can choose to establish a Branch Office (Şube) or a Liaison Office (İrtibat Bürosu) instead of incorporating a local subsidiary.


1. Branch Office (Şube)

A branch is dependent on the parent company in terms of capital and legal structure but is treated as a separate taxpayer. It can conduct commercial activities and generate profit in Turkey. The parent company remains liable for the branch's debts.


2. Liaison Office (İrtibat Bürosu)

A liaison office cannot engage in any commercial or profit-generating activities. Its scope is strictly limited to market research, representation, and marketing. It is fully exempt from corporate tax and income tax on employees' salaries.



Frequently Asked Questions (FAQ)

What is the Difference Between a Branch and a Liaison Office?

  1. Branch: Can engage in commercial sales, earn profit, and is taxed.
  2. Liaison Office: Cannot sell or earn profit; only for representation and marketing.
  3. Liaison Tax Exemption: 100% corporate tax exemption.