COMMERCIAL LAW
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registered similarly to domestic commercial enterprises, but provisions
pertaining to the trade name of their country of origin are reserved”.
For
such branches, a commercial representative should be appointed with full
authorization. Moreover, as per Article 9 of Law No. 5174, branches shall
also be registered in chambers of the places where they are situated.
Second, pursuant to the Article 48 TCC,
“all branches should use
the trade name of the registered office by mentioning the qualification
of being a branch”.
Branches of foreign-based commercial enterprises
should
“mention the locations of the registered office and the branch and
the qualification of being a branch in their trade name”.
In addition, since the branch is property of the commercial enterprise,
pursuant to Art. 202 of the Turkish Code of Obligations (“CO”) and
Art. 11 TCC, in the event of the transfer of a commercial enterprise, the
branch shall also be subject to the transfer unless otherwise stipulated in
the transfer agreement.
It should be also mentioned that it is possible to file a lawsuit in the
place where the branch is situated against the registered office pursuant to
the Art. 14/1 of Civil Procedure Code No. 6100. However, this possibility
of filing such a lawsuit is limited by the operations of the branch.
Opening a Branch.
Commercial enterprises wiling to open a
branch in Istanbul should file an application with the trade registry with
necessary documentation and deposit a fee for this purpose. The related
documentation is different for domestic and foreign-based commercial
enterprises. However, there is no differentiation for the required
documentation related to the type of the commercial enterprise (limited
liability, joint stock companies etc.)
2
.
Liaison Offices
Definition and Elements.
Pursuant to the Article 6 of the Application
Regulation of the Foreign Direct Investment Law (“Application
Regulation”), the Ministry of Economy is competent to provide
2
Within this framework, a detailed list with explanations (in Turkish) may be found on the
Istanbul Chamber of Commerce’s website for branches to be opened in Istanbul: http://www.
ito.org.tr.