Holding Company Formation in Türkiye: Essential Steps for 2026

Establishing a holding company in Türkiye remains one of the most efficient strategic structures for multinational groups, private investors, and high-growth enterprises seeking regional expansion. Türkiye’s corporate-friendly legislation, favorable tax regime, extensive double-tax treaties, and simplified governance framework make it an ideal jurisdiction for holding and managing domestic or foreign subsidiaries.

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Finlexia Turkish Accounting Firm provides end-to-end legal guidance for holding company formation, governance, and operational compliance. Since 2017, we have assisted thousands of international investors in establishing and managing robust corporate structures throughout Türkiye.

At Finlexia Turkish Accounting Firm, we have been guiding international clients through the complexities of company formation in Türkiye since 2017, and holding companies remain one of the most sophisticated and beneficial structures available to foreign investors.

Our company formation lawyers explain every critical stage of holding company formation in Türkiye, including its legal framework, advantages, documents, costs, taxation, timelines, and post-incorporation requirements.

What Is a Holding Company in Türkiye?

A holding company in Türkiye is a corporate entity established primarily to own shares or partnership interests in other companies rather than to produce goods or services directly. These entities serve as parent companies that manage, control, and coordinate the activities of subsidiary companies while providing centralized governance, financial management, and strategic direction.

Turkish law recognizes holding companies as legitimate corporate structures that can be established either as a joint stock company formation (Anonim Şirket – A.Ş.) or a limited liability company formation (Limited Şirket – Ltd. Şti.). The choice between these structures depends on your operational scale, capital requirements, and long-term strategic objectives.

Strategic Advantages of Holding Companies in Türkiye

Tax Optimization Benefits

Türkiye’s corporate tax framework offers significant advantages for holding company structures. Under the participation exemption regime, dividends received from qualifying subsidiaries can be exempt from corporate income tax, provided certain conditions are met. This creates substantial tax efficiency for groups managing multiple subsidiaries across different sectors or jurisdictions.

Furthermore, capital gains derived from the sale of subsidiary shares may qualify for exemption under specific circumstances outlined in our corporate taxation guide, making Türkiye an attractive jurisdiction for investment holding structures.

Access to Extensive Tax Treaty Network

Türkiye maintains double taxation treaties with over 80 countries, providing holding companies with reduced withholding tax rates on dividends, interest, and royalties. This extensive treaty network facilitates efficient profit repatriation and cross-border investment flows, positioning Turkish holding companies as effective vehicles for international business expansion.

Centralized Management and Governance

A holding company structure enables centralized financial management, strategic planning, and operational oversight across multiple business entities. This organizational efficiency reduces administrative costs, streamlines decision-making processes, and enhances corporate governance standards throughout the entire group structure.

Asset Protection and Risk Management

By separating operational activities into distinct subsidiary companies, a holding structure provides enhanced asset protection. The holding company’s liability is generally limited to its investment in each subsidiary, creating a legal firewall that protects the parent company and other subsidiaries from risks associated with individual operating entities.

1. Understanding Holding Company Formation in Türkiye

A Turkish holding company is a parent entity established to own and control shares in subsidiary companies. It may be formed as either a Joint Stock Company (A.Ş.) or Limited Liability Company (Ltd. Şti.), depending on the investor’s structural preferences.

To explore other structures, you may review our relevant resources:

• Company formation in Türkiye
• Joint stock company formation
• Limited liability company formation
• Foreign subsidiary formation
• Branch office formation
• Liaison office formation
• Free zone company formation

Holding companies in Türkiye enjoy flexible corporate rules, reduced regulatory burdens, and attractive tax planning opportunities, making them suitable for structuring international investments, asset protection, and group consolidation.

2. Key Advantages of Forming a Holding Company in Türkiye

2.1 Favorable Tax Treatment

Türkiye provides participation exemption benefits for certain dividend incomes and share-sale earnings, enabling holding companies to significantly reduce overall tax liabilities. Our Corporate taxation guide provides detailed and up-to-date tax insights for investors.

2.2 Efficient Group Governance

Holding companies allow centralized decision-making, coordinated strategy management, and streamlined reporting for multiple subsidiaries inside or outside Türkiye.

2.3 Asset Protection and Structural Security

Investors can ring-fence operational risks and allocate assets under a parent structure, reducing exposure to subsidiary-level liabilities.

2.4 Flexible Investment and Expansion Options

Through a Turkish holding company, investors can seamlessly acquire, incorporate, or restructure domestic and foreign companies with reduced administrative barriers.

3. Legal Framework for Holding Companies

Turkish holding companies operate under the Turkish Commercial Code (TCC), the Foreign Direct Investment Law, and the Corporate Tax Law. Foreign investors enjoy full ownership rights, with no local shareholder or director requirements.

Both A.Ş. and Ltd. Şti. structures are permitted. However, most investors prefer Joint Stock Companies due to their favorable share-transfer rules, strong governance standards, and suitability for multi-layered investment structures.

4. Required Documents for Holding Company Formation

Investors must prepare a set of corporate and personal documents depending on the shareholder profile. For detailed requirements, please refer to:
Required documents for company formation.

Generally, foreign individuals must submit:

• Passport copies
• Proof of address
• Tax number application
• Power of attorney (if represented by our firm)

Foreign legal entities must provide:

• Certificate of incorporation
• Board resolution for establishing the holding company
• Articles of association
• Signature circulars and authorized representative appointments

All foreign documents must be apostilled or legalized.

5. Formation Process and Timeline

The incorporation process is efficient and can be completed within days. You may also review our Timeline for formation for a structured overview.

5.1 Step-by-Step Process

1. Determine corporate structure (A.Ş. or Ltd. Şti.)
2. Obtain tax numbers for shareholders
3. Draft the articles of association
4. Prepare and notarize required documents
5. Deposit paid-in capital (for JSCs, at least 25% before registration)
6. Register with the Trade Registry
7. Obtain the company’s tax registration
8. Apply for social security and workplace registration (if needed)
9. Open corporate bank accounts
10. Begin operational licensing if required

5.2 Typical Timeline

Most holding companies can be established within 3–5 business days once all documents are ready.

6. Costs of Holding Company Formation in Türkiye

Costs vary depending on structure (A.Ş. or Ltd. Şti.), share capital, document legalization, and additional legal services. Please review our detailed guide here:
Costs of company formation.

Typical cost components include:

• Government fees
• Notary and translation fees
• Legal service fees
• Capital deposit requirements
• Post-incorporation compliance expenses

7. Corporate Bank Account Opening

Opening a corporate bank account is a mandatory and strategic step for holding companies. Turkish banks require physical verification, compliance checks, and detailed corporate documentation.

To understand the full requirements, visit our guide: Corporate bank account opening.

8. Taxation of Holding Companies in Türkiye

Holding companies may qualify for tax reductions and exemptions depending on their portfolio structure and international operations. Key tax components include:

• Corporate income tax
• Withholding tax on dividends
• VAT obligations
• Double-tax treaty benefits
• Participation exemptions for certain share transfers

9. Post-Incorporation Requirements

After registration, holding companies must complete several operational and governance obligations:

• Mandatory bookkeeping and monthly tax filings
• Annual general assembly meetings
• Maintenance of share ledgers
• Appointment of certified accountants
• Periodic compliance audits

If the company will hire foreign executives or shareholders planning to stay in Türkiye, they may also apply for:

• Residency for business owners
• Work permit for company owners

Contact us for Holding Company Formation in Türkiye

Establishing a holding company in Türkiye requires strategic planning, accurate documentation, and careful compliance with legal and tax requirements. Finlexia Turkish Accounting Firm offers comprehensive incorporation, governance, tax advisory, and long-term legal support for multinational investors. Our team ensures a seamless, fully compliant, and efficient establishment process from start to finish.

If you are planning to form a holding company in Türkiye or expand your international corporate structure, we invite you to contact Finlexia Turkish Accounting Firm for personalized legal assistance.