What is a holding?

A holding company is a PLC that can offer many benefits to your business. In this blog you will read everything you need to know and how to set one up!

3 min readFeb 22, 2022
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A holding company is the highest company within a group of companies. It is also called a parent company. The holding company is part of holding company structure. Which consists of an operating company and the holding company. In this blog you will find everything you need to know about a holding company!

What is a financial holding company?

A financial holding company is the same as a holding company. It is simply called differently in that case. Other names for holding company are mother, holding company and management company. Examples of holding companies are Unilever, Coca Cola and Pepsico.

Why a holding company?

A holding company offers many advantages if you have several companies or expect to sell your company in the future. You can easily secure your profits, shares, patents and intellectual property in a holding company. In case of bankruptcy or debts of the operating company, creditors cannot lay claim to these assets.

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Advantages of a holding company

A holding company offers many advantages. One of the most important is that with a holding company you spread your risks. The other advantages are listed below:

  • The profits of the operating company can be transferred to the holding company tax-free.
  • The holding company can take over the management of the operating company.
  • A holding company is useful for multiple companies because then you do not have to apply the usual wage rules for each company.
  • It is easier to transfer parts of a holding company.
  • If the holding company owns at least 95% of the shares in the operating company, a fiscal unity can be established. This will save you tax.

Setting up a holding company

You can set up a holding company by starting up 2 companies, but it is also possible that you already have one or more companies. One of these PLCs will be used as an operating company and the other as a holding company. As the owner, you own all the shares of the company that is used as a holding company. The holding company as a company owns the shares of the operating companies.

If you have managed to do all this, you have successfully set up a holding company!

Setting up a holding company is easier than you think. It is done in no time! It is important that you carefully check the name in which the shares of the companies will be registered and whether this is all correct. If this is correct, you already have a holding company!

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