Family Holding

1. What is a Family Holding?

I will begin by explaining the meaning of the term "holding." The English verb "to hold" originates from Anglo-Saxon and Old English, meaning "to keep," "to possess," or "to take care of." The Collins Dictionary defines it as "to restrain or control." Therefore, a family holding literally translates to "family control." In a legal context, it refers to the control of a family's assets. In particular, business law views it as a means of protecting companies, which in Portuguese law corresponds to the figure of Sociedades Gestoras de Participações Sociais (SGPS).

According to legal doctrine, in addition to the family type, there are pure holdings and mixed holdings. Pure holdings are companies whose sole object is to hold shareholdings, while mixed holdings combine this with direct commercial activities. These concepts are not regulated by specific Portuguese laws.

2. Operational Companies and Holding Companies for Shareholdings (SGPS)

Holding Companies for Shareholdings (SGPS), governed by Decreto-Lei n.º 495/88, de 30 de Dezembro, are companies that manage the quotas or shares of operational companies — i.e., companies that directly engage in market activities. The dominant companies, legally known as "family holdings," are also commonly referred to as the "parent company," while the managed or subsidiary companies are called "subsidiary companies" or "daughter companies."

Under the specific Portuguese legislation — Decreto-Lei n.º 495/88, de 30 de Dezembro — these entities can be established as sociedades por quotas (Articles 197.º et seq. do Código das Sociedades Comerciais) or sociedades anónimas (Articles 271.º et seq. do Código das Sociedades Comerciais).

SGPS enjoy freedom in their corporate composition, meaning it is not necessary for them to be "family-owned" — this designation applies only when all shareholders belong to the same family. They may also be referred to as patrimoniais or administrativas.

3. Objectives

Typically, a family member who originally holds the assets — often represented by the matriarch or patriarch — establishes the holding company as the founding shareholder. The company is created with the objective of managing the shareholdings in the operational companies belonging to the same family, organizing and controlling other companies that form part of the family's assets. The primary purpose is to ensure asset security against litigation, particularly those related to succession. This is a legal strategy to prevent conflicts among potential heirs in the event of the owner's death, thereby guaranteeing the long-term continuity and protection of the assets.

By establishing a family holding, the processo de inventário (Artigo 2102.º do Código Civil) is avoided in cases of transmissões mortis causa, preventing excessive costs and complex legal proceedings. In addition to the objectives mentioned above, family holding entities also make it more difficult for creditors to attach the family's assets in cases of insolvency, as creditors can only target the company's assets.

4. Inheritance

In the event of the death of the original shareholder who holds the assets, the object of the inheritance is not the company(ies) itself, but rather the shareholdings in the form of quotas or shares. Therefore, in such cases, the shareholdings are divided among the heirs. Those who were not previously shareholders in the parent company become shareholders, while existing shareholders receive additional shareholdings. However, they do not necessarily become direct owners of the subsidiary companies.

5. Incorporation

It is recommended to seek the assistance of a lawyer when establishing a family holding to avoid issues with the company's legal personality. The first step is to choose the corporate form (sociedade por quotas or sociedade anónima). Next, a contrato social must be drafted — a written agreement among the shareholders defining the company's rules, along with the essential elements: names of the shareholders, company name, object, registered office, and others.

It is necessary to contribute the capital social, followed by the commercial registration of the company, which can be done online through the "Empresa na Hora" portal or traditionally at a notary or registry office. The final steps in incorporating the company are obtaining the Declaração de Início de Atividade and opening a corporate bank account.

6. Conclusion

Sociedades Gestoras de Participações Sociais create favorable conditions for managing the assets and holdings belonging to a family unit, with the aim of protecting and perpetuating the family's wealth. It is also an instrument of planejamento sucessório, allowing for the advance organization and division of assets among heirs while the founder is still alive. This prevents family disputes and reduces the costs associated with an processo de inventário.

Referências Bibliográficas:

FREIRE, Marco Túlio, Sem Inventário: Como a Holding Familiar Pode Transformar o Futuro da Sua Família, 2025 [Consult. 1 Out. 2025]. Disponível em: Amazon.com.br eBooks Kindle.

FREIRE, Marco Túlio, Holding Familiar: É Para Todo Mundo?, 2024 [Consult. 3 Out. 2025]. Disponível em: Amazon.com.br eBooks Kindle.

BÜHLER, Priscila; BRUCH, Kelly Lissandra; FLEISCHMANN, Simone, «A sucessão no meio rural e a holding familiar: uma ótica profissional e multidisciplinar», Revista de Direito Econômico e Socioambiental, Vol. 16 Nº 1 (2025) 21 páginas [Consult. 30 Set. 2025]. Disponível em: Dialnet.

Código das Sociedades Comerciais. Diário da República n.º 201/1986, Série I de 1986-09-02. Disponível em: Código das Sociedades Comerciais - CSC | DR.

Decreto-Lei n.º 495/88, de 30 de Dezembro. Diário da República n.º 301/1988, Série I de 1988-12-30. Disponível em: Decreto-Lei n.º 495/88 | DR.

Código Civil. Diário da República n.º 274/1966, Série I de 1966-11-25. Disponível em: Código Civil - CC | DR.

Melissa Carvalho Silva 2025