How does a holding account work with different structures?

A holding account works differently with each structure, because the number of operating companies under the holding determines what you use the account for. The holding is the BV that sits above your operating companies. Its business account is in the name of the holding itself, separate from the accounts of the operating BVs.

A holding with one operating company

With a holding that has one operating company, the holding's account is mainly where distributions and reserves from the operating BV end up. Few transactions go through it, but the balance is often large.

You deliberately keep that money separate from the account the operating BV uses for day-to-day business. That way it stays outside the operating BV's business risks.

A holding with several operating companies

With a holding that has several operating companies, the holding's account becomes the centre of the group. Money moves back and forth between the BVs, you want to see what each BV holds and you want to set aside reserves for the whole group in one place.

The holding account then needs to be more than a savings pot: you use it to manage the money flows of the whole structure.

What do you need to open a holding account?

To open a holding account at GoDutch you need the holding's KVK number and a valid passport or driving licence. That is the same basis as for a business account for your BV, but with a group structure one question is added: who ultimately owns which BV? So have these documents ready:

• KVK number: of the holding and of every operating company you are also opening an account for.

• Passport or driving licence: of the director making the application, who verifies their identity via the camera.

• Shareholder register: of the holding, so it is clear who holds the shares.

• Organisation chart: an overview of how the holding and the operating companies are connected.

• UBO details: the people who are the ultimate owners, usually the holding's shareholders with more than 25%.

Not every provider accepts holding structures, and some only accept a holding with one operating company. So check beforehand whether your whole structure is welcome, not just the holding itself.

How do you transfer money between the holding and an operating company?

At GoDutch you transfer money between the holding and an operating company with an instant transfer between your own BVs, which arrives immediately. Typical flows between them are:

• Distribution: profit the operating BV distributes to the holding.

• Management fee: the fee the operating BV pays the holding for the management provided by the DGA.

• Current account: money the holding lends to an operating company or the other way round, for example for an investment.

Record the management fee in a management agreement and loans between the companies in a current account agreement with an arm's length interest rate. Also give every intercompany entry a clear description, so the same item shows up in the accounts of both BVs.

Who gets access to your holding's business account?

Only those involved with the holding get access to your holding's business account. Because every BV at GoDutch has its own account with its own users, you decide per company who can view, who can pay and who gets a card. In a holding structure you usually see these roles:

• DGA: you manage the holding and all operating companies and switch between them without logging in again.

• Director of an operating company: a co-director or manager only gets access to the operating BV they run.

• Accountant: your accountant views each BV with the permissions you set, for example view-only.

• Employees: anyone who spends money for an operating company gets a card with a limit on that BV's account.

That way the holding's money stays shielded from everyone who only works in an operating company.

How do you set aside reserves within your holding?

You set aside reserves within your holding with pots in the holding's business account. Each pot has its own virtual IBAN, so you see what is free to spend and what already has a purpose. Commonly used pots are:

• DGA salary: the amount you will pay yourself over the coming months.

• Corporate income tax: the amount you set aside for the holding's tax assessment.

• Buffer: a reserve for quieter periods in the operating companies.

• Investments: money for a next step, such as a new operating company.

Do you get a return on the reserves in your holding account?

You get a return on the reserves in your holding account through Treasury, not through interest on the balance itself. With Treasury you put money the holding doesn't need for now into money market funds that invest in short-term government debt of core eurozone countries, with a daily return.

You activate Treasury separately, because the partner first verifies your company. Treasury is an investment: its value can fluctuate and returns are not guaranteed.

What does a business account for your holding at GoDutch mean?

A business account for your holding at GoDutch means you manage the whole structure from one app: the holding and every operating company with its own account, under one login. You send money between your BVs with an instant transfer, set aside reserves in pots and decide per BV who has access. If you run into anything, for example when adding a new operating company, real people help you 24/7.