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ARTICLE · 13 SEPTEMBER 2013

Branches And Liaison Offices

Erdem & Erdem Law
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Developing commercial relations and the need for access to new markets drives commercial enterprises to establish branches or liaison offices in different places.

TurkeyCorporate/Commercial Law
Naciye Yilmaz
Naciye Yilmaz
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Developing commercial relations and the need for access to new markets drives commercial enterprises to establish branches or liaison offices in different places. This newsletter article will assess the differences in the legal principles and procedures that govern the establishment of branches and liaison offices.

Branches

Definition and Elements. There is no definition of branch under Turkish Commercial Code No. 6102 ("TCC"). However, Article 9/2 of Law No. 5174 on the Union of Chambers and Commodity Exchanges of Turkey and Chambers and Commodity Exchanges ("Law No. 5174") stipulates that "although connected to the registered office [headquarters], workplaces which have a separate equity and accounting or workplaces for which accounts are kept in a registered office and have no separate equity but perform commercial activities" shall be considered as branches. Therefore, the essential elements of a branch are; (i) to be connected to the registered office, (ii) to

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