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Company Formation Turkey



Holding Company in Turkey

Updated on Monday 22nd November 2021

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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.
Below, our company formation consultants in Turkey explain the main regulations under which it is possible to set up a holding company. We can also assist foreign investors who want start holding companies in Turkey.

What is a Turkish holding company?


 Quick Facts  
  Legal entities used

Limited Liability Company,

Joint Stock Company

Incorporation method 

With the Turkish Trade Register

Incorporation time 

Around 3 weeks

Easy online incorporation


1 Director required

Shareholding structure

At Least 1 shareholder

Minimum Capital

TRY 10,000


25% corporate tax rate

Control  Foreign ownership available
Accounting and Reporting   Annual tax return, audits
Number of double taxation treaties  82

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:
  • - commercial partnership;
  • - limited liability company;
  • - joint stock company;
  • - commandite company;
  • - collective company.
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.

Requirements to register a holding company in Turkey

The creation of a holding company in Turkey relies on respecting the provisions of the Company Law. Apart from choosing a suitable business form, the following steps must be completed upon the creation of a Turkish holding:
  1. reserving a trading name that respects the conditions imposed by the Turkish law;
  2. drafting and notarizing the Articles of Association of the holding company;
  3. setting up the corporate bank account and depositing the share capital in accordance with the type of structure selected;
  4. filing the documents with the Trade Register and obtaining the Certificate of Registration;
It is important to note that just like in the case of other business forms, the holding company must also have a registered address in Turkey. However, its subsidiary or subsidiaries can be located outside the country.
If you want to open a company in Turkey and need information on the formalities that need to be completed, our local consultants are at your disposal with details.
We invite you to read about the benefits of Turkish holding companies in the scheme below:


Special regulation for the creation of holdings in Turkey

Compared to other types of companies in Turkey, the holding must also respect the regulations imposed by the Ministry of Customs and Trade. Under these provisions, a holding company registered as a joint stock company in Turkey must comply with the special regulations imposed upon changes related to the share capital or amendments to the Articles of Association.
The Ministry of Customs and Trade, before registering a holding company in Turkey, the shareholders must obtain a permission from the Internal Trade General Directorate. The permission is based on the filing of the company’s Articles of Association, the signatures of the shareholder(s) in a notarized form and, where the incorporator is another company, their business permits or other authorizations they operate under.
When making amendments to the Turkish holding company’s Articles of Association, there are several documents that must be filed with the Ministry of Customs, among which a resolution passed by the Board of Directors, the amended Articles of Association and a letter through which the consent for the changes is requested.
Our Turkish company formation agents can offer more information on the requirements related to the regulations imposed by the Ministry of Customs and Trade in relation to the creation of a holding company.

Special share capital provisions on Turkish holding companies

It is important to note, that holding companies registered as joint stock in Turkey that have not deposited the entire share capital upon incorporation are required to retain 5% of their annual profits until at least 20% of the share capital is reached.
Once the 20% share capital is reached and the profit in the limit of 5% is paid to the shareholders, 10% of the amount of money to be distributed to those who own shares in the company must be added to the legal reserve of the holding company.
In case the holding company registers losses, the Turkish law allows for less than 50% of the legal reserve to be used for recovering the loss or as a precaution against unemployment and other consequences.
Our company registration representatives in Turkey can offer more information on the requirements related to setting up a holding company.

Why is the joint stock company more suitable for a holding in Turkey?

Turkish holding companies are more probable to take the form of joint stock companies because these benefit from more flexible regulations than private limited liability companies. Also, joint stock companies are more suitable for large projects, such as those of holdings which usually own shares in various subsidiaries engaged in various activities.

Taxation of holding companies in Turkey

Even if they do not engage in commercial activities, holding companies will be taxed as follows:
  • - with the corporate tax which is applied at a rate of 20%;
  • - with a withholding tax on the distribution of profits which is levied at a rate of 15%;
  • - a dividend tax which is levied at a rate of 15% only when dividends are distributed to non-resident natural persons and non-resident companies;
  • - lower rates are available under Turkey’s double tax treaties (Turkey has signed around 82 such agreements).


If you want to open a holding company in Turkey and need assistance, our agents can help you with the preparation and filing of all the documents required.

Why set up a holding company in Turkey?

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.


Meet us in Istanbul

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Call us now at +90 532 351 66 77  to set up an appointment with Cagatay Altunsoy, one of our specialists in company formation in Istanbul, Turkey. Alternatively you can incorporate your company without traveling to Turkey.

As a client of CS Yonetim, you will benefit from:

  • - 24 hour response time guaranteed;
  • - cost- efficiency; 
  • - dozens of articles and free information on the Turkish structures.
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