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COMMERCIAL LAW

55

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

.