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Exploring Expansion into Turkey: A Complete Guide for UK Businesses

Exploring Expansion into Turkey: A Complete Guide for UK Businesses

The trade and investment relations between the United Kingdom and Turkey began to go uphill in recent years. From manufacturing and textiles, IT, automotive, and chemicals, Turkey is now one of the prime UK suppliers in different segments. The ongoing negotiations provide a path leading to an advanced Free Trade Agreement, which expands opportunities beyond goods into key sectors such as services, digital trade, and data.

For British businesses wishing to take advantage of such developments, establishing a presence in Turkey—via a branch, subsidiary, or liaison office—opens the door to a market of more than 85 million people. Below is a comprehensive guide to help you understand the current trade environment, potential incentives, and the steps to set up your Turkish entity.


Exploring Expansion into Turkey: A Complete Guide for UK Businesses

1. Strengthening UK-Turkey Trade Relations

  1. Growing bilateral trade: UK-Turkey trade, which stood at 23.5 billion pounds in 2022, increased by more than 30% from last year.

  2. Modernised free trade agreement: The understanding between the UK and Turkiye for starting the negotiations of a new FTA, beyond just goods-only but also critical areas, such as services and digital, is at least required since about 80% of the UK's GDP arises from the contribution of the Services Sector.

  3. Infrastructure projects: Projects like the railway between Ankara-İzmir, partly financed by the UK, demonstrate this deepening partnership and the UK's commitment to supporting infrastructure growth in Turkey.


2. Why Expand Your Business into Turkey?

  1. A strategic location: Whereby Turkiye bridges Europe and Asia, offering a good logistical position for UK firms trying to reach both new and established markets.

  2. Diverse economy: From automotive manufacturing to software development, Turkey’s industrial base continues to broaden, offering a wide range of potential partnerships and client bases.

  3. Government incentives: Techno parks, free zones, and R&D-focused initiatives provide tax breaks and various forms of financial support, making Turkey even more appealing for innovative UK businesses.


3. Choosing Your Market Entry Strategy

  • UK companies looking to expand into Turkey usually consider one of the following structures:

  • Branch Office

  • Operates within the scope of objectives set by the parent company.

  • requires less corporate formalities yet is not a separate legal entity.

  • Profits can be repatriated to the parent company, subject to withholding tax (potentially reduced under applicable tax treaties).

  • Subsidiary (e.g., Joint Stock Company or Limited Liability Company)

    • Functions as an independent Turkish legal entity.

    • Often preferred by investors seeking to limit liability and expand shareholding options.

    • Shall be in conformity with the Turkish Commercial Code, which encourages transparency and is in line with EU standards.

  • Liaison Office

    • Prohibited from undertaking commercial transactions.

    • Excellent for market research, networking, or any other preparations.

    • License by the Ministry of Industry and Technology; usually valid for three years.


4. Key Documents and Requirements

Regardless of whether you opt for a branch, subsidiary, or liaison office, UK businesses must gather the following documentation:

  1. Legalisation Certificate

    • Ensures that your UK-issued documents are recognised in Turkey.

    • Often accompanied by an Apostille if the UK or Turkey is a party to the relevant convention (which they are).

  2. Companies House Certificate

    • Must include:

      • Incorporation status

      • Shareholder details

      • Company registered address

      • Directors’ details

      • Business activities

  3. Board Resolution

    • Outlining the decision to establish a presence in Turkey and detailing the scope of the intended operation.

  4. Power of Attorney (POA)

    • Optional but strongly recommended if local accountants, lawyers, or other professionals will handle incorporation, tax filings, and secretarial services on your behalf.


5. Legalisation and Translation of Documents

  1. All documents issued in the UK for use in Turkey should be:

  2. Legalised or Apostilled in the UK

  3. This process involves the verification of the authenticity of the signature, seal, or stamp on your documents.

  4. For more details, see our dedicated article on apostille, legalisation, and document certification services in the UK.

  5. Translated into Turkish

    • Must be carried out by a sworn translator.

  6. Notarised in Turkey

    • Ensures that the translated versions are officially recognised by Turkish authorities.

Once these steps are complete, your documents are valid for submission to the relevant Turkish authorities (such as the Trade Registry Directorates).


6. Government Incentives and Tax Advantages

Turkey provides very attractive incentives to foreign businesses, especially regarding research, development, and high-tech sectors. Techno parks, free zones, and a variety of grant programs often provide the following benefits:

  • Decreased or zero corporate tax in specially designated zones

  • VAT exemption for some types of purchases

  • Social security support regarding local hiring

  • Exemption from customs duty on imports of certain kinds

These incentives aim at stimulating innovation and inward investment, hence making Turkey a particularly attractive option to consider for expansion by UK companies.


7. How CCS Law Can Help?

At CCS Law, we can support you at every step of your journey: 

  • Advice on decision-making: Advisory on choosing the most proper structure-branch, subsidiary, or liaison office.

  • Incorporation services: Preparation and filing of required paperwork with the relevant authorities in Turkey.

  • Legalisation and notarisation process: Liaising with UK and Turkish authorities to ensure that all documents are legally usable in Turkey.

  • Ongoing maintenance: Providing tax, regulatory, and company secretarial services to keep your Turkish entity compliant.

We are committed to providing first-class, effective legal services, which comply with both UK and Turkish standards.

If you are ready to explore the Turkish market or have any questions, please do not hesitate to contact CCS Law today. Our experts stand ready to guide you through every step of your expansion into Turkey.

Disclaimer: This article is intended for informational purposes only and does not constitute legal advice.





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