נקודות מפתח
- Operating a חברת אחזקות within Europe can provide countless benefits.
- However, it’s important to properly plan your company’s formation timeline and choose a workable corporate structure.
- Our EU holding company guide will walk you through this process.
Establishing a European holding company can be a fast track to various benefits thanks to a wide array of jurisdictions and corporate structures to choose from.
These opportunities can provide tax advantages and shareholder liability protection on any asset you hold, from real estate to cash reserves and company shares.
There are critical obligations that you’ll need to observe in order to take full advantage of the EU landscape. But if done correctly, you’ll have the chance to transform your holding company into a strong and well-placed global entity.
Here’s how to set up a European holding company with maximum impact.
Why Establish a Holding Company in Europe?
By starting a holding company in Europe, you can access benefits like:
- A wide variety of jurisdictions, including 27 countries in the European Union (EU) and more than 40 countries across all of Europe.
- Low-tax jurisdictions that provide reduced corporate tax rates, participation exemptions, reduced withholding taxes, and rebates and refunds.
- Simple corporate models for shareholder and asset protection, many of which are available to companies with minimal capital.
- Double taxation treaty networks that allow you to operate in multiple countries while eliminating overlapping taxes.
- Standardized and straightforward reporting obligations.
- A strategic location that combines the EU’s multinational market with access to intercontinental trade, communications, and transport.
How to Set Up a European Holding Company
Starting a holding company in Europe can take several weeks, but planning out an orderly company formation timeline can speed up the process.
Here are the specific steps you’ll need to take.
Step 1: Choose a Jurisdiction
The first step toward establishing a holding company involves choosing a jurisdiction that will provide a suitable base of operations.
When you evaluate your options, consider factors such as tax benefits, compliance obligations, broad market access, and ease of international payments.
Keep in mind that you might need to establish your holding company in multiple locations if your assets are spread across multiple jurisdictions — especially for real estate, intellectual property, and certain cross-border financial investments.
See our review of leading jurisdictions to learn about specific opportunities.
Step 2: Select a Corporate Structure
Once you’ve chosen a country to work from, decide on a corporate model that’s available in that jurisdiction and compatible with your business plans.
For example, if you’re operating a private holding company in the United Kingdom, you might consider a limited company (LTD). In France, you might consider a SARL structure, and in Germany, you might consider a GmbH or UG structure.
You might instead opt for a PLC model if operating a public company in the UK — or an equivalent public company structure elsewhere.
Step 3: Prepare Legal Documents
Next, it’s time to formalize the details of your company and compose legal documents.
This involves preparing documents such as Articles of Association, a Memorandum of Association (or incorporation deed), and shareholder agreements. These documents together detail your corporate objectives, governance, and shareholder rights.
In some jurisdictions, you may need to have your documents certified by a notary, especially in civil law countries like France, Germany, or Spain.
Step 4: Appoint Directors, UBOs, and Other Members
You’ll need to appoint directors to act as agents of the holding company. These individuals must be recorded in the national business register.
Note that corporate structures often legally require a minimum number of directors. For example, UK-based LTDs require at least one director, but UK-based PLCs require two directors. These rules vary between countries and corporate structures.
You should consider having at least one director who is a local resident. While this isn’t always mandatory, it can help support compliance and build trust with regulators.
In most EU jurisdictions, you’ll also need to identify ultimate beneficial owners (UBOs), whose details are entered into a national registry much like directors.
Step 5: File Incorporation Documents
Once you have all of your documentation prepared, signed, and notarized, you can formally establish your company as a legal entity.
This step involves submitting it to a national business register, such as:
- The UK’s בית החברות
- France’s Business Register via Institut National de la Propriété Industrielle (INPI)
- Germany’s Commercial Register (Handelsregister) through a notary
- ה Danish Business Authority (Erhvervsstyrelsen)
You may be able to file documents by mail, online, in person, or through an agent. Digital filing options are usually the fastest way to submit documents, but you should still set aside several business days for your filing to be processed.
Step 6: Obtain Tax IDs
You must also obtain a local tax identification number (TIN) or tax identifier.
Depending on the jurisdiction, you may receive a TIN automatically during the incorporation process, or you may need to register with a separate tax authority.
If your company is a mixed holding company and engages in sales, you may need to obtain a Value Added Tax (VAT) number, both in the EU and in other regions. This allows you to collect tax on cross-border sales that exceed a monetary threshold.
You generally don’t need a VAT number if you operate a pure holding company that passively manages assets without engaging in commercial sales.
Step 7: Open a Bank Account
Finally, you’ll need to open a business bank account.
Pure holding companies primarily use their bank account to manage share capital (that is, money invested by shareholders) and corporate assets.
In some locations, you’ll need to set up an account at an earlier stage so that you can prove you meet minimum capital requirements during filing.
Additionally, mixed holding companies engaged in day-to-day operations may engage in transactions and hold operational funds in a bank account. Standard EU business accounts and alternative payment platforms like Payset can help in this area.
Choosing a Corporate Structure
As noted above, choosing an optimal corporate structure is an important step. Here’s a non-exhaustive list of options in key European countries.
United Kingdom — LTDs and PLCs
Private limited companies (LTDs) are a common model for holding companies throughout Europe, especially in the UK, Ireland, Malta, and Cyprus.
This structure gives shareholders limited liability, meaning they only risk their own capital investments and aren’t responsible for company debts and liabilities.
Directors do not benefit from these protections. They have legal duties and may have liabilities in case of misconduct or breach of duty. Furthermore, directors have restricted personal access to corporate funds, except through salaries, dividends, or loans.
LTDs usually have little or no capital requirements and impose few reporting obligations, making this an ideal option for small companies.
חברות ציבוריות בע"מ (PLCs) similarly offer shareholders limited liability, but within a company listed on a stock exchange or during the pre-listing stage.
PLCs have greater minimum capital requirements, often in the range of tens of thousands of euros, plus strict reporting obligations. This means that PLCs are best for significantly sized companies with substantial holdings.
Germany — GmbH and AG
Gesellschaft mit beschränkter Haftung (GmbH) is Germany’s limited liability model for private companies, featuring shareholder protections and filing obligations.
One distinction is minimal capital requirements. Unlike LTDs, German GmbH companies must have at least 25,000 euros in capital, with 12,500 euros paid in at registration to ensure that the company is capable of staying solvent.
Germany additionally offers the Unternehmergesellschaft (UG) model, which is essentially a mini-GmbH for smaller entrepreneurs. Companies operating as a UG can start with just one euro of capital but must put aside 25% of annual net profits.
Finally, Aktiengesellschaft (AG) is a limited liability model for public companies, requiring at least €50,000 in capital and imposing strict reporting obligations.
France — SARL and SA
Société à responsabilité limitée (SARL) is a private limited liability model used in France, Luxembourg, Belgium, and some African countries.
France’s SARLs have had low capital requirements since the country repealed its high minimum capital thresholds in 2003. There is now a nominal 1 euro requirement.
Critically, SARL share transfers require approval from a majority of shareholders. This means that holding companies may find it more demanding to transfer shares under a SARL structure compared to other countries’ equivalent models.
Société Anonyme (SA) is the limited liability model for public companies in France and other Francophone countries. This structure has high capital requirements amounting to €37,000 in France alongside strict reporting requirements.
Denmark — ApS and A/S
Similar limited liability structures exist in Denmark. This includes the unrestrictive anpartsselskab (ApS) model for private companies, with minimum share capital requirements of DKK 20,000 as of 2025, and the stricter aktieselskab (A/S) model for public companies, with a minimum capital requirement of DKK 400,000.
Regulations and Tax Compliance
Once you’ve fully established your company, the process isn’t over. It’s important to stay up to date with regulatory and tax compliance obligations.
There are several EU-specific obligations that you should follow, such as:
- UBO (Ultimate Beneficial Owner) disclosure obligations, which are mandatory in almost all EU states under recently updated EU AML rules.
- Compliance with the EU’s DAC6 directive, which involves alerting authorities of tax arrangements that might constitute tax abuse.
- The Corporate Sustainability Reporting Directive (CSRD), which requires medium and large companies to file reports on social and environmental impact.
- The United Kingdom’s departure from the EU during Brexit, which may affect obligations and opportunities for UK-based holding companies.
- General filing and amendment obligations, including changes in company details, location, shareholders, directorship, and capital structure.
Choose Payset as Your Payment Partner
Whether you choose to start a holding company in Europe or any other type of business, Payset can serve you as a payments provider.
We’re ideal for holding companies in the EU and elsewhere, offering:
- Support for 34 currencies through multi-currency IBAN accounts
- Availability in 70+ countries around the world
- Global payment network access, including but not limited to SWIFT and SEPA
- Foreign currency (FX) exchange with real-time rate previews
- Corporate-focused features, including bulk payments, team access, and full account oversight useful for treasury management, all from one dashboard
- Affordable rates ו no sign-up fee
With targeted support for holding companies and other personal and business users, we’re a great choice no matter how you need to move your money.
