Go to main content

Combining different corporate forms

It may be appropriate, in some cases, to combine different corporate forms. To gain economic advantages, entrepreneurs commonly join forces in an economic association, for example, for purchasing.

There are many possible reasons for wishing to combine different corporate forms. For example, if an association wishes to engage in business that is not suitable for the association. The business can then be placed in a company owned by the association, but with its own board, staff and accounts.

In this way, risks are spread and activities are streamlined. This also creates opportunities to transfer/sell (spin off) the business, if, for example, employees want to buy shares in the company.

Joint purchasing

Lone entrepreneurs often have difficulty negotiating advantageous prices, so it is common for many smaller businesses to join forces in an economic association. The association is used, for example, for joint purchases, marketing or renting a shared space.

Members can be companies with different corporate forms. Joining an economic association provides these companies with an economic advantage, as it is easier to negotiate better prices and reduce costs.

Agricultural and forest property

When a private person buys an agricultural or forest property, he or she normally becomes a sole trader through the purchase. It is not always advantageous to keep all activities in that corporate form, which means that owners of such properties sometimes combine their sole traders with, for example, limited companies. The limited company may then be responsible for the operation of the farm, or other business activities carried out by the owner, such as consultancy services.

Support and advice for EU nationals

Your Europe is an EU site designed to help you do things in other European countries – avoiding unnecessary inconvenience and bureaucracy.

Your Europe website

Help us improve

Let us know what you think by rating this page and answering a few questions.

Leave feedback at Your Europe