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Turkish laws allow foreign companies to open liaison offices to do the required research in their industry.
These offices cannot carry out commercial activities. Here, the aim is to enable foreign companies to discover the potential in the domestic market, do research on investment opportunities, and create new opportunities for themselves by conducting business activities in one of five different fields. Thus, it is possible to attract more foreign investment into Turkey.
Liaison offices enable foreign companies which were established according to foreign country laws to do market research in Turkey without conducting any commercial activity, to collect information about its sector, and to benefit from some advantages. The number of active liaison offices in Turkey is 787 as of 31.12.2017.
This article will stress the structural details of liaison office types and how they could be beneficial for foreign investors.
In Which Fields Can a Liaison Office Be Established?
The Ministry of Trade can issue certificates of incorporation to each foreign company providing that they conduct services within one of the five fields. These fields are as follows
Representation and Hosting,
Control, Inspection, and Provision of Suppliers in Turkey with regards to Quality and Standard,
Technical Support,
Communication and Transfer of Information, and
Regional Management Centre
Representation and Hosting:
This service branch can be issued for five years. It allows foreign companies to be represented in its sector and at similar organizations. Also, it enables firms’ officials to coordinate and organize business services in Turkey. Hence, these company officials can conduct business meetings at these offices and promote new business policies.
Control, Inspection, and Provision of Suppliers in Turkey with regards to Quality and Standard: This field of activity can be issued for five years by the Ministry of Trade. It allows foreign company officials to inspect local suppliers that produce goods and services in the name of foreign companies. Inspections aim to keep the quality up to the foreign companies’ standards at all times. Moreover, this title covers foreign companies’ product and supplier demands.
Technical Support:
The purpose of this field of activity is to enable foreign companies to provide services to local distributors regarding training or technical support, and support local suppliers and manufacturers to improve the quality standards. Thus, foreign companies would advance their efficiency in the Turkish market. This field of activity can be issued for five years.
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