Turkey is one of the most attractive countries in terms of foreign investments in the world, which is why a significant number of enterprisers from all over the globe are come here to open companies. The Turkish Commercial Law also encourages foreign investors by allowing them to set up various types of companies when registering their business. The holding company is one of the most popular structures employed when starting a business in Turkey, because it allows foreign investors to own shares in a local company.
A holding company, usually known as a parent company, is allowed to own shares in one or more companies called subsidiaries. The main role of a Turkish holding company is to control its subsidiaries and make sure they have enough capital. The holding, however, cannot undertake any commercial activity.
Foreign investors are allowed to open holding companies in Turkey by registering one of the following types of structures:
Holding companies are usually registered as limited or joint stock companies. The minimum capital required to register a limited liability company in Turkey is 10,000 TRY, while for a joint stock corporation the minimum amount required is 50,000 TRY.
Holding companies are the most efficient tax minimization solutions for foreign investors doing business in Turkey. Because of its network of double taxation agreements, Turkey can provide for tax exemptions or deductions on dividend payments received by foreign owners of shares in Turkish companies, such is the case of holding companies. Moreover, the holding company offers enhanced protection of assets for its shareholders. Foreign enterprisers are not required to hire staff for their holding company in Turkey, as it will only require a manager or a director who will oversee the subsidiary or subsidiaries’ activities.
For more information about the advantages of setting up a holding company in Turkey, you can refer to our company formation representatives. You can also contact us for assistance with the company registration procedure.