subsidiary vs. branch in turkey
TRANSCRIPT
Subsidiary vs. Branch in Turkey
A presentation brought to youby BridgeWest.eu
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Foreign Investments in Turkey
• Turkey has become an attractive destination for foreign entrepreneurs willing to invest and expand their business abroad.
• Furthermore the volume of the foreign investments in Turkey increased 8.5 times in the last ten years compared to the entire ’80 decade.
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Reasons for Investing in Turkey
• The main reasons for investing in Turkey are:
the strategic location of the country, between Europe and Asia;
a young and well-trained workforce;
friendly business environment.
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Expanding a Business in Turkey
• Many foreign investors who want to start doing business in Turkey choose to open a branch or a subsidiary of their parent-company.
• There are several differences between a branch and a subsidiary, but the essential one is that a branch depends on the parent-company while the subsidiary is a total different company.
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Opening a Subsidiary in Turkey >>
• A subsidiary in Turkey can be established as a limited liability company or a joint stock company.
• However, the limited liability company is preferred by most investors because it is simple to incorporate and operate.
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>> Opening a Subsidiary in Turkey
• In order to open a subsidiary in Turkey, you need a minimum capital share that is different depending on the type of company you choose to set up.
• For a limited liability company, the minimum capital share is 50,000 TRY if it is public and 10,000 TRY if it is private.
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Registering a Subsidiary in Turkey
• At the incorporation with the local Trade Register, you will need a few documents, such as:
the articles of association;
copies of the passports of the managers;
specimen signature of the manager etc.
• Our Turkish lawyers will help you drafting the documents required by the local laws.
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Opening a Branch in Turkey >>
• Foreign companies may also open branches in Turkey.
• This structure is not a legal entity and it depends mostly of the parent company that is liable for all the obligations of the branch.
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>> Opening a Branch in Turkey
• The branch must be registered with the Trade Register, like an ordinary company, and then the activity can start.
• Our Turkish lawyers can help you register a branch or any other type of company in Turkey.
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Incorporating a Branch in Turkey
• You will need a special permit from the Turkish Ministry of Industry and Trade and you can obtain this document after you fill in an application.
• Only after you obtain this permit, you can go to the Trade Register in order to incorporate the branch.
• You will need the same documents as for registering a subsidiary.
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Legal Assistance in Turkey
• If you need more information or legal assistance for opening a branch or a subsidiary of your company in Turkey, you may contact our law firm in Turkey that will handle the entire procedure.
Thank you for your attention!
• For more information please contact us at:
(+44)203-287 0408
http://www.lawyer-turkey.com/
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