How do a holding company and an operating company work together?
When your sole proprietorship grows, it may be worth assessing whether a private limited company (BV) would better suit your situation. Depending on your activities, you can also choose to place one or more operating companies under a holding company. This makes it clearer to your clients which company they are dealing with. For example, you can have separate operating companies for different services or target groups, such as business and private customers.
It is important to organise this structure properly so that the business runs smoothly.
Holding and operating companies explained
If you choose a holding company with one or more operating companies, the holding company is the parent company. This BV holds shares in the operating companies. Day-to-day business activities usually take place in the operating companies; a holding company may itself provide services such as management. Clients generally do not do business with the holding company, but with one of its operating companies.
A holding company can be used to build and manage assets, for example for future investments. These assets may include dividends received from the operating companies.
The operating companies are the BVs where the actual work takes place. These are the companies with which clients enter into agreements for the supply of goods or services. The client receives an invoice from the operating company. Complaints, payment collection and other client contacts are handled by that company. The holding company is the actual owner of the business; the operating company performs the work.
Read our article on business ownership structure charts for an explanation of that specific subject.
A holding company and operating company at the same address
A holding company and its operating companies can share an address and use the same virtual office service. The group structure must be clear, including what each BV does. The way you use the address must match the information you give clients, and your address details should be consistent across the KvK register, your website and other communications.
If the structure or activities are unclear, the address provider may ask for more information or reject the application.
Alongside a business address for your holding or operating company, we also offer workspace. Our virtual office therefore has a real location where you can work. You can rent a flexible workspace for this purpose; ask us about availability and rates.
An example of a holding company with operating companies
To clarify the above, consider an example of a holding company with operating companies. Suppose an entrepreneur runs a successful plumbing business and wants to expand into installing central heating boilers and heat pumps. A holding structure would then be logical. The holding company might be called Cornelissen BV, with two operating companies beneath it: Cornelissen Loodgietersservice BV and Cornelissen Verwarmingsservice BV.
In this example, the holding company owns the shares in the operating companies and builds assets for future investments. The operating companies carry out the work and generate revenue. Whether a profit remains also depends on their costs.
Why choose a holding and operating company structure?
A holding structure can help separate activities and assets. That separation does not provide complete protection in every situation: cross-guarantees, loans or liability claims may also affect other group companies. Distributing profits to the holding company is not an ordinary bank transfer; company-law and tax requirements apply. Assess in advance which structure and arrangements fit your business risks and plans.
Business address services for a holding company with operating companies
You can apply for a business postal address for your holding company and one or more operating companies with us. To assess your application properly, we need a clear picture of the business structure. This is why the structure chart mentioned earlier is an important part of the information you must supply. It must also be clear which individuals are responsible for the business.
You can submit an application for several BVs. We will provide a personalised quote. You cannot transfer liability for your business to us. The agreement sets out how each registered business may use our address. A postal address for correspondence and a business visiting address have different functions and conditions. When applying, it is important that we know which BVs will use the business registration address.
You may only use the address for the companies included in your application. You can, of course, add another operating company later by submitting an additional application. Removing a company is also possible. At the end of the agreed contract period, you can terminate the service for an operating company or, if you wish, for the holding company.
