Holding Company in Turkey

Holding Company in Turkey

Updated on Sunday 26th January 2020

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A holding company in Turkey owns shares in other companies named subsidiaries, and controls them to ensure they have adequate capital, in order to properly perform, under specific rules and regulations. Many overseas investors choose to deal with such businesses and to open and register their companies, due to the Turkey’s positive laws. Our Turkish lawyers can provide you with the necessary information and guidance if you are interested in opening a holding company in the country.

What you need to about the holding company in Turkey

Turkey has always been open to foreign investments worldwide, and businessmen choose to set up holding companies under specific structures like limited liability company, joint stock company, limited or general partnerships. Due to the beneficial taxation system in Turkey, numerous overseas investors choose to own holding companies in the country. To register a limited liability company in Turkey, one needs a minimum share capital of TRY 10,000. Private businessmen in Turkey own subsidiary shares and annual dividends. The registration process of a holding company is quite simple and our lawyers in Turkey can offer legal assistance and information when preparing the documents. They can also help you register for VAT in Turkey.

The rules of a holding company in Turkey

If an individual owns more than 60% of the declared share capital in a subsidiary, the company’s name shall include the word “holding” besides the name of the enterprise. Businessmen who want to finance a firm in a restructuring course they might encounter difficulties, therefore, a holding company is the proper choice, due to the tax exceptions and the safety of assets. A holding company in Turkey can be managed by a single director in charge of its daily activities, and there is no obligation of hiring people. 
If you have any other questions about how to set up a holding company in Turkey, or about our legal services, you are invited to contact our law firms in the country.