Open a Holding Company in Turkey: Structures and Conditions

Ready to set up your holding company in Turkey? You may explore this article and also check our online services for personalized assistance provided by our Turkish agents. You can receive your offer quite fast.

Quick Facts
Legal entities used	Limited Liability Company, Joint Stock Company
Incorporation method	With the Turkish Trade Register
Incorporation time	Around 3 weeks
Advantages	Easy online incorporation
Precautions	1 Director required
Shareholding structure	At Least 1 shareholder
Minimum Capital	TRY 10,000
Taxation	25% corporate tax rate
Control	Foreign ownership available
Accounting and Reporting	Annual tax return, audits
Number of double taxation treaties	82
Legislation	Turkish Commercial Code, Law on Support of FDI
Special permissions	Issued by the Ministry of Trade in Turkey
What is a pure holding?	The type of holding company that only participates in other existing companies
Transforming a partnership into a holding company in Turkey	Available option
Required documents for opening a holding company in Tukey	Articles of Association comprising information about the company name, shareholders, operations, authorized capital amount, business policies, etc. A formal application for opening a holding company in Turkey is required by the registration authority.
Granted exceptions for holding companies in Turkey	Must allocate 5% of the profits for a general legal reserve until reaching 20% of the paid capital.
The use of legal reserves	Capital increase, profit distribution, etc.
Issuing bonds through a holding joint company (YES/NO)	YES
Can be subject to tax optimization (YES/NO)	YES
Financing holding companies in Turkey	Available options: – direct investment, – bond issuance, – bank lending, etc.
Planning a holding company in Turkey	Through a business model, objectives, business strategies, specific developments, and more
Corporate bank account required (YES/NO)	YES
Tax exemptions for holding companies in Turkey	No taxes imposed on dividends received from foreign subsidiaries, if at least 10% is held for a minimum of one year, the subsidiary bears at least a 15% effective tax burden and the dividends are repatriated by the CIT filing deadline.
Other financial recommendations	Accounting and reporting obligations
Why choose our Turkish specialists in company formation?	We can manage the process of registering a holding company in Turkey at affordable prices.

Who can open holding companies in Turkey?

Foreign or local investors who want to own and manage shares in other companies in Turkey or abroad.

What are the most common business structures available for Turkish holding companies?

the joint stock company – Anonim Şirket (A.Ş.) in Turkey,
the limited liability company (LTD in Turkey is also a good option.

Are there any nationality restrictions in setting up holding companies in Turkey?

No.

Is a minimum share capital needed for a holding company in Turkey?

TRY 50,000 for LTD,
TRY 250,000 for JSC.

NOTE: At least 25% of the JSC minimum share capital must be deposited in a local corporate bank account in Turkey.

We invite you to read about the benefits of Turkish holding companies in the scheme below:

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Where do I register a holding company in Turkey?

At the Turkish Trade Register through MERSIS, the official platform.

What are the conditions to set up a holding company in Turkey?

choose the desired business structure/entity in Turkey,
check and reserve the business name,
get permission from the Turkish Ministry of Trade,
open a Turkish bank account,
deposit at least 25% of the minimum share capital,
register for taxation in Turkey and get the official ID,
incorporate the staff with the Turkish Social Security, etc.

IMPORTANT: All documents must be translated into Turkish and notarized before submission.

Here is a video presentation about holding companies in Turkey:

Do I need a representative agent to open a holding company in Turkey?

There is no need for a representative agent to set up a holding company in Turkey, but it is recommended to collaborate from the start with our Turkish specialists and get complete support for the incorporation stages.

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, as is the case with holding companies. A Turkish holding company offers enhanced protection of assets for its shareholders.
foreign entrepreneurs 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.

What is the time frame to open a holding company in Turkey?

About 3-6 weeks to be active.

What are the costs for company formation in Turkey?

Here are some of them:

Trade Registry fee and Gazette publication – Starting from TRY 10,000,
Competition authority contribution – 0.04% of the company’s share capital (also due on capital increases),
Office rent in Istanbul – Starting from TRY 1,500 per s.m./month,
Virtual office package – About TRY 2,500/month for a complete VO package,
Tax ID/VAT registration (no state fee; EORI is an EU number, not needed for a Turkish company) – Can be part of a company formation package,
Accounting fees – Starting from TRY 4,400/month for the services of a CPA accountant in Turkey,
Company stamp – Around TRY 500 – 800.

For more information about the advantages of setting up a holding company in Turkey, you can refer to our company formation representatives. You can contact us for assistance with the company registration procedure.