100% Corporate Tax Exemption
Liaison offices are legally exempt from Turkish corporate income tax since they do not execute commercial sales.
RECOMMENDED ENTITY
Liaison Office (Representation) or Foreign Company Branch
A Liaison Office conducts market research and promotion with zero tax obligations, while a Branch conducts commercial invoicing under the parent company's name.
OFFICE REQUIREMENTS
Virtual or Commercial Office
Registered legal business address (virtual or commercial office).
REQUIRED LICENSES
- Ministry of Industry and Technology Official Operating Permit
- Apostilled & Notarized Parent Company Incorporation Documents
- Legal Power of Attorney (POA) for Turkish Representative
- Designated Non-Resident Corporate Bank Account for Foreign Currency Transfers
SECTOR HIGHLIGHTS
Key Operational Strengths
0% Income Tax on Foreign-Funded Salaries
Staff salaries funded directly from foreign parent company currency accounts are 100% exempt from Turkish income tax.
Director Work Permits
Fast-track work authorization for foreign country managers appointed by the parent entity.
TAX INCENTIVES & EXEMPTIONS
Sector Tax Advantages in Turkey
✓ 0% Corporate & Payroll Tax Exemption
Complete tax shelter for operational expenses, market studies, and expatriate personnel salaries.
FORMATION JOURNEY
Ready in 4 Seamless Steps
STEP 01
Parent Entity Documentation & Apostille
Gathering and legalizing parent company certificates of good standing, articles, and legal POA.
STEP 02
Ministry of Industry & Technology Filing
Submitting the 3-year market survey roadmap and representative credentials to the central ministry.
STEP 03
Permit Issuance & Banking
Receiving the official 3-year operating license and establishing foreign capital banking channels.
BARUT GROUP / CORPORATE INTELLIGENCE
Which Corporate Entity Fits Your Business?
Compare legal liability, partnership flexibility, and tax structures to choose the ideal business vehicle in Turkey.
Select Your Profile:
Sole Proprietorship
Sole Proprietorship
Fast single-person registered enterprise.
Legal & Financial Liability
Unlimited (Personal assets are fully liable)
Foreign Partner Capacity
Strictly 1 person (Cannot add partners)
Work Permit Feasibility
Restricted and higher scrutiny
Tax Structure
Progressive Income Tax (15% to 40%)
Best Suited For
Freelancers, independent consultants, and early-stage solo e-commerce sellers.
MOST POPULAR FOR FOREIGN INVESTORS
Limited Liability Company (LLC)
Limited Liability (LLC)
The standard flexible corporate vehicle for international business.
Legal & Financial Liability
Shareholder liability is limited as a general rule, subject to statutory exceptions including certain public debts and the duties of managers and legal representatives.
Foreign Partner Capacity
1 to 50 partners (Allows 100% foreign ownership)
Work Permit Feasibility
Foreign partner or manager work permit eligibility is assessed under prevailing statutory criteria and individual merits. Company formation alone does not guarantee a work permit or residence.
Tax Structure
Standard Corporate Tax rate is 25% (updated 2026), with deductibility of tax-allowable expenses under statutory conditions and supporting documents, subject to sector exemptions.
Best Suited For
E-commerce, import/export, tech startups, logistics, consulting, and growth companies.
Joint Stock Company (JSC)
Joint Stock (A.Ş.)
Large-scale capital projects and structured share transfers.
Legal & Financial Liability
Shareholder liability is generally limited to committed share capital, without prejudice to liabilities arising from management, legal representation, or personal guarantees.
Foreign Partner Capacity
1 person to unlimited shareholders
Work Permit Feasibility
Eligibility of board members and foreign directors is assessed under statutory regulations; no guaranteed outcome is implied.
Tax Structure
Standard Corporate Tax rate is 25% (updated 2026), with allowable expense deductions and statutory share transfer exemptions where applicable.
Best Suited For
Industrial manufacturing, investment funds, holding structures, and corporate ventures.
FAQ
Frequently Asked Questions
Can a Liaison Office issue sales invoices in Turkey?
No, a Liaison Office is strictly dedicated to non-commercial market representation and promotional studies. To issue invoices, a Branch or a subsidiary LLC must be formed.
SECTOR DIRECTORY
Explore Other Business Sectors
Explore sector-specific tax exemptions, regulatory compliance, and setup requirements in Turkey.
01E-Commerce & Digital Marketplaces
Start an E-Commerce Company in Turkey 2026
LLC Incorporation, E-Invoice (E-Fatura), ETBİS Registration for Amazon, Etsy & Trendyol
02Software & Technology
Form a Software & Tech Company in Turkey
Teknokent 0% Corporate Tax Exemptions, Software Export Incentives & R&D Subsidies
03Import, Export & Global Trade
Incorporate an Import & Export Company in Turkey 2026
Customs Registration, Exporters Association Membership & VAT (KDV) Refund Management
04Freight & Logistics
Establish a Freight & Logistics Company in Turkey
Ministry of Transport TİO Licensing, Forwarding Operations & Zero VAT Invoicing
05Tourism & Travel Agency
Establish a Tourism Agency in Turkey & TÜRSAB License
Group A Travel Agency Certification, Medical Tourism Accreditation & Tour Operator Setup