- March 23, 2023
- Posted by: admin
- Category: Blog
Almost every company that operates on a large scale in a particular country aims to open multiple branch offices or subsidiaries in other nations. The growth of a business organisation is apparent when it is simultaneously operational in multiple countries. A considerable number of foreign business owners have already opened a branch/subsidiary of their companies in Turkey. Such opening requires Authorised Representative Appointment in Turkey.
Most foreign entrepreneurs find the procedure of investment incredibly complex during company formation in Turkey. A leading consulting firm can come to your rescue if you are interested in forming a branch office in this popular and business-friendly country. It is judicious for a successfully operating foreign company to conduct investment evaluation by forming a branch office.
Features of a Branch of a Foreign Company
The establishment of branches in different nations including branch opening in Turkey always takes place under the parent company. There is a restriction on the domain of activities and duration of a company’s branches. The division of a company’s capital into multiple shares is imperative when opening a new branch in a new nation.
Company branches reflect the personality of headquarters as they don’t have them. Contact fo-consultancy.com if you intend to open a branch office of your business enterprise in Turkey.
Here are the aspects a foreign company must give priority to.
Authorised Representative Appointment in Turkey
You can seek free consultation from a team of expert consultants with years of experience rendering company formation services to foreign investors. They will let you make you aware of the importance of Authorised Representative Appointment in Turkey to operate the new branch or subsidiary. Additionally, you need to grant certain powers to the subsidiary/branch-authorised representative and document the recognition of specific powers in a power of attorney.
Here’s why a foreign company must appoint a fully-authorised representative:
- Company representation in the new country
- Performing transactions in the articles of association of the company
- Appear before the courts as plaintiff and defendant on behalf of the company in branch transactions-related cases
- Appointment of a proxy for opening another branch in the same nation
- Grant powers to the appointed proxy when departing from Turkey for a temporary period. However, it is paramount to document the same during the branch opening application.
Requisite Documents when Appointing a Branch Representative
- Declaration of the branch representative’s signature
- Petition for delegation’s notification
- Identity Proof if the branch representative is a Turkish resident and tax number printout and notarised copies of passport if the branch officer is a foreigner
- The branch official’s signed declaration of the branch representative position acceptance
- The final decision of the body of authorisation of the centre on whether a foreign company can appoint a branch representative
Expert consultants at FO Consultancy will inform you about the required company formation documents if you want to open a branch in Turkey. Seeking the experts’ assistance will help you understand the branch opening procedures clearly.
Branch Registration in the Commercial Register
In Turkish law, it is mandatory for foreign companies to register new branch offices in the Commercial Register. It is necessary to complete the registration process within fifteen days. Application to the office of the commercial registry is imperative, with prerequisite documents for hassle-free registration.
Remember that you need to register the first branch office in Turkey as the main branch. Then, for registration of other branches of your company in the same country, it is a must to register them as branches of domestic commercial organisations.