OpCo (Operating Company)
The operating entity of a group — the company that generates revenue, employs staff and carries operational risk. It is typically owned by a holding company that captures profits through dividends or management fees.
In practice
The HoldCo / OpCo split is standard practice for groups exceeding 500,000 euros in annual net profit. The OpCo generates cash; the HoldCo preserves and redeploys it. If an operational setback occurs, assets held at holding level remain protected. In a franchise network, each geographic territory can be structured as a separate OpCo, simplifying the sale of individual zones without affecting the central structure.