Term · BV & DGA
Operating company (werkmaatschappij)
The BV in a holding structure that runs the business: with the customers, staff, contracts and risk. The holding company owns the operating company's shares.
Keeping the business in a separate BV keeps the assets in the holding out of reach of the operating company's creditors. Profit the operating company doesn't need is paid to the holding as dividend.
The operating company has its own records, annual accounts and VAT return. It often pays a management fee to the holding for the DGA's work.