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ARTICLE · 04 SEPTEMBER 2012

Liaison Office Regulation Amended

Akdogan Uslas Attorneys at Law
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In accordance with Turkish law, establishment by a foreign company of a liaison office in Turkey is governed by the Law No. 4875 on Foreign Direct Investments (the Law).

TurkeyCorporate/Commercial Law
Akdogan | Uslas Attorneys At Law
Akdogan | Uslas Attorneys At Law

In accordance with Turkish law, establishment by a foreign company of a liaison office in Turkey is governed by the Law No. 4875 on Foreign Direct Investments1 (the Law). Pursuant to the Regulation for Implementation of the Law2 (the Regulation), the foreign entity founding the liaison office (i.e., the investor itself) must be established in the form of a "company" in accordance with the laws of its country of origin. The major point to note is that liaison offices cannot engage in any commercial activity. In other words, the conduct of any income-generating activity in Turkey through a liaison office is strictly prohibited.

An amended version of the Regulation was published in the Official Gazette on 3 July 2012. This article sets forth the main changes brought about by the amended Regulation:

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