What is the fundamental difference between a Holding and a BV?

[Carlitos]

Can a holding have operational items such as a laptop, office, etc or is it just an instrument to store value in participations of businesses?

 

[Cosara]

A holding company is a company which is usually the sole shareholder of another company, the so-called operating company.

Both companies are legal entities, each responsible for their  income and expenses.

This means that both companies - the holding company and the operating company - have their own property and debts.

This construction is often used to spread risk.

[Joost Rietveld]

A holding is a BV like any other BV. The difference is in the way you use them, as explained by Cosara.

 

Yes, a holding can own a laptop or lease an office. But usually these kind of expenses, related to the goal of your company, fall on the operating BV. The holding is there to hold the shares, hold the excess funds and valuable property like real estate or IP rights

[Carlitos]

On 14/07/2021 at 19:42, Cosara said:

A holding company is a company which is usually the sole shareholder of another company, the so-called operating company.

Both companies are legal entities, each responsible for their  income and expenses.

This means that both companies - the holding company and the operating company - have their own property and debts.

This construction is often used to spread risk.

 

Thank you for your input Cosara, I appreciate it. 

 

What I am thinking is the following, I have (hypothetically) a holding BV and an operating BV (as well as participation in other companies). I am considering investing in an office space for the Holding BV, let's say, to be built in the garden of my personal home. 

 

Is that an expense that could be 'placed' on the Holding B.V.? 

 

Moreover, is a holding BV a good place to purchase / store assets such as Stocks, Bonds, ETFs, Cryptocurrencies, etc?

 

 

[Roel J]

A Holding BV has 2 main purposes.

1. It holds the stocks for the participation in the operating BV.

2. To seperate capital / moeny from operational risks

 

So that over the years results in a pile of money (if business is going well) of the profits that the operating companies do not need and pay to there share holders that you can use as you see fit.

You can go to the stockmarket to invest in the assets you mention to get a return. putting it on a bankaccount gives nothing

you can rent, buy, or build in office to do your (holding) business from or make any expence you see fit to run the company

 

there is only one legal entity BV there is no legal difference between a Holding BV and operating BV. The term holding an operating are purely labels to indicate they serve a different purpose.

 

 

[Esther Tromp]

there is no legal difference other than the purpose of the company consisting of either 'holding other entities and assets' or 'operating activities'. You can use your holding to save for pensions and to invest excess capital or to keep certain assets outside the operating entity for protection reasons (insolvency, seizure) or in the light of a future sales of the operating activities where certain assets should not be transferred, such as IP rights, etc.