How do you create a chart of your business structure?

When you apply for business finance or a business address with us, you may need to provide a chart showing your company structure. This explains ownership, control and who is authorised to act for the business. It helps a lender or address provider assess your application. The chart supports your application but does not replace documents such as a BV’s articles of association or shareholder list.

Organisation charts and ownership charts

You may be familiar with organisation charts and have probably seen one before. An organisation chart shows how an organisation is arranged. The director appears at the top, with management, departments and teams below. Employees’ names are often included if there are not too many of them. This type of chart can help a new employee quickly understand how the organisation works.

It is often included in a staff directory with employees’ photographs, names and roles. A chart showing ownership and control serves a different purpose. Rather than showing job roles within a business, it focuses on responsibilities and ownership. It contains information such as who the shareholders are and how many shares each person owns, which legal entities belong together and which individuals are involved in the business.

What information belongs in a structure chart?

Creating a chart of your company’s ownership and control can be time-consuming. It is therefore important to establish beforehand which information it needs to contain, so you can collect it in advance. This makes preparing the chart much easier. The following elements may be included:

The entities involved

List the private limited companies, foundations or other legal entities that form part of the business.

The relationships between them

Show how the entities are connected. For a BV, identify its shareholders. For a foundation, show its governance and control; a foundation has no shareholders.

Distribution of shares

State the actual shareholding relationships. A holding company may own all the shares in an operating company or only some of them. Other shareholders or investors may also be involved. Include their interests and the corresponding percentages in the chart.

Individuals

Identify the people who own or control the entities in the chart. This is about ownership and control, not employees. Where someone holds an interest indirectly through another company, the chart helps show how they qualify as an ultimate beneficial owner (UBO).

An example of a structure chart

The following example explains a structure chart for a holding company with an operating company.

P. de Vries - 100% of shares in De Vries Holding BV - 100% of shares in De Vries Bouw BV

In this example, P. de Vries is a shareholder in the holding company. The holding company is, in turn, a shareholder in the operating company, which carries out the actual work. P. de Vries may be a director of one or both BVs. Being a director is different from being a shareholder. The holding company is a legal entity and therefore cannot be a UBO.

According to the KvK, a UBO must always be a natural person.

Who qualifies as a UBO?

For a BV or NV, an individual can qualify as a UBO by holding more than 25% of the shares, voting rights or economic interest, or by exercising actual control in another way. If no one meets these criteria, the statutory directors are registered as pseudo-UBOs.

Always remember that a structure chart provides supplementary information. A business address provider or lender will always request additional supporting documents, such as a shareholder list. Check that the chart you provide is complete. Does it include all relevant legal entities, and are the ownership relationships clear? Are shareholding percentages stated, and are the individuals clearly identified?

Also ensure that the chart is up to date. A chart prepared earlier may be outdated. In particular, check individuals’ names and roles to avoid mistakes.

Why do we need to understand your company structure?

As your business address provider, we need to know who we are doing business with and who the ultimate beneficial owner is. It must also be clear exactly what the company does, because certain sectors are excluded from using a business postal address. For a sole proprietorship or a two-person general partnership, the structure is immediately clear.

For a holding company with one or more operating companies, however, a business structure chart can provide the clarity needed to make an informed decision.

A good structure chart does not need to be complicated. The most important thing is that it shows at a glance which entities belong to the business, who actually owns it and which individuals are part of its organisational structure.

For more information, read our articles below:

holding and operating companies → for an explanation of the structure

customer due diligence → for an explanation of how and why information about ownership and control is requested.