Are Opening an Association Branch and a Representative Office the Same Procedure?

Association Formation and Constitution

Prepared by: Constantinople

No. A branch's formation and governing-body arrangements differ from a representative office's appointment and notification arrangements. The constitutional basis and authorisation process for opening a branch must be examined. A representative office does not have general assembly and management bodies like a branch. The head office wishing to facilitate daily business does not mean that identical powers can be granted to every model.

The current constitution, head-office board resolution, location, details of appointees and explanation of the proposed work are required. If a branch is contemplated, formation-notification and governing-body requirements are assessed. For a representative office, the representative's limits of duty and required notification are defined clearly. Check whether leases or service contracts will be made for the head office and under which authority. A branch or representative office acting as a legal entity separate from the head office may create disputes over parties and liability.

First examine which structure suits the operational need, then whether the constitution and resolutions permit it. General assembly representation, membership registration, books and financial reporting are planned according to the chosen model. Connections with the head office and supervision arrangements must continue after opening. A foreign association opening a branch in Turkey is additionally subject to a permission regime.