Establishing a subsidiary in Turkey: Setting up a local structure to develop your business sustainably

Many companies initially approach the Turkish market through exports, a local distributor, a sales agent or a development partner. This approach often makes it possible to test the market with a limited level of risk and validate commercial potential before committing to larger investments.

However, when volumes increase, customers multiply, projects become more structured or the need to better control operations becomes strategic, the question of local establishment naturally arises.

Creating a subsidiary in Turkey then allows the company to move to the next stage: hiring locally, invoicing directly, signing contracts under Turkish law, managing commercial or industrial operations and maintaining a permanent presence in the Turkish market.

For business owners, export directors and business development managers, the question is no longer simply how to sell in Turkey, but how to develop business in Turkey in a sustainable, secure and profitable way.

Why create a local company in Turkey?

With a population of more than 86 million, a substantial industrial base, a strategic position between Europe, the Middle East and Central Asia, and a strong entrepreneurial culture, Turkey is today one of the key development markets for many international companies.

In many sectors, customers, partners and local administrations attach particular importance to having a presence on Turkish territory. A company established in Turkey often benefits from greater credibility, closer proximity to its stakeholders and a stronger ability to respond to market expectations.

Creating a subsidiary in Turkey is therefore not merely a legal procedure. It often represents a strategic step in building a long-term presence. A local structure makes it possible to hire employees directly, sign contracts under Turkish law, invoice locally, open professional bank accounts, manage import and export operations more easily, participate in certain tenders, develop a more direct relationship with customers and partners, strengthen credibility within the local business ecosystem and manage commercial or industrial operations more effectively.

For some companies, this local establishment is also the first step towards setting up an industrial site, a logistics centre, a service centre or a regional organisation covering several markets.

Subsidiary, branch, liaison office or local partner: Choosing the right model in Turkey

Before setting up a local structure, a strategic assessment is required. Should the company continue working with a distributor? Create a subsidiary in Turkey? Open a branch? Set up a liaison office? Develop a more structured local partnership?

Each model has its own advantages and constraints. Working with a distributor or sales agent generally limits initial investment, but also creates greater dependency on the local partner. By contrast, opening a company in Turkey provides greater autonomy, visibility, commercial control and decision-making capacity. The right choice depends in particular on the company’s development objectives, the level of investment planned, the sector of activity, the commercial strategy, the desired level of presence in the Turkish market and the parent company’s ability to manage a local structure. Setting up a company in Turkey also requires selecting a legal form that is consistent with the intended objectives. Depending on the case, this may involve a limited liability company, a joint stock company, a branch or another form of presence authorised under Turkish regulations.

The choice of legal structure has a direct impact on governance, accounting obligations, taxation, directors’ responsibilities, signing powers, financing methods and future development prospects. The challenge is therefore to identify the structure best suited to the reality of the project, rather than applying a standard model.

Coordinating company incorporation formalities in Turkey

Creating a company in Turkey requires the coordination of a wide range of legal, tax, administrative, notarial and banking procedures. The formalities include, in particular, the preparation of incorporation documents, notarial deeds, official translations, powers of representation, tax formalities, administrative registrations and procedures with the Turkish Trade Registry.

Future directors must also obtain their tax identification numbers, certain validations must be completed through Turkish e-government platforms, and the entire file must comply with the requirements of the local authorities. Governance is also a key issue when opening a company in Turkey. Who will represent the company? Who will be authorised to sign contracts? Who will have the authority to act with banks, administrations, partners or suppliers? The preparation of signing powers, the appointment of legal representatives and the organisation of governance must be anticipated from the beginning of the project. These elements have a direct impact on the ability of the Turkish subsidiary to operate effectively after incorporation and to make the decisions required for its development without delay.

For a foreign parent company, this phase can quickly become complex if it is not managed in a structured manner. The objective is to enable the smooth creation of the structure while limiting the risks of errors, delays or misunderstandings.

Opening a bank account, transferring capital and preparing operational launch

The banking dimension is often one of the most sensitive stages in creating a subsidiary in Turkey. Opening bank accounts, transferring share capital, temporarily blocking funds, releasing capital and completing the associated declarations require rigorous coordination. This phase also raises frequent questions for foreign investors: what level of capital should be planned? How should funds be transferred? How can foreign exchange risk in Turkey be limited? How should future financial flows between the parent company and the Turkish subsidiary be organised? Proper preparation helps streamline the process and accelerate the company’s operational launch.

However, a legally incorporated company is not necessarily ready to operate immediately. Several elements generally still need to be finalised: company stamps, contracts with the accounting firm, administrative tools, final powers of attorney, document organisation and internal procedures. From the moment it is registered, the company must also comply with accounting, tax, social security and administrative obligations specific to the Turkish framework. Issues relating to VAT, corporate income tax, filing obligations, payroll, employment contracts, recruitment and work permits for expatriates must be anticipated sufficiently early.

The objective is to transform a registered entity into a genuinely operational structure, able to sign, invoice, recruit, develop its business and effectively support the company’s growth strategy in Turkey.

Advantis supports companies in creating subsidiaries and local structures in Turkey

For more than twenty years, Advantis has supported SMEs, mid-sized companies, industrial groups, investors and international businesses in their establishment projects and subsidiary creation in Turkey.

Our teams coordinate all legal, tax, administrative, notarial, banking and accounting procedures required to set up a compliant, registered and immediately operational structure. We support our clients in choosing the legal structure, preparing incorporation documents, completing administrative formalities, opening bank accounts, transferring capital, organising governance, arranging legal representation and preparing the operational launch.

Our objective is to enable business owners, export directors and business development managers to create a company in Turkey under the best possible conditions, while reducing the internal coordination burden and accelerating the launch of their activities in the Turkish market.