Subsidiary entities in the PSO Performance Ladder
Subsidiary entities are subsidiaries, operating companies (B.V.s, private limited companies) or franchise organisations that you include under the PSO application of a main applicant. Together with the main applicant, they form the applying organisation. The manual defines this in section 1.5.4 of the PSO manual 2.6 from TNO , and the conditions are set out in annex 2A. For a group (concern), this is the most important choice when you apply: as one whole, or part by part. For how company size works in this context, see company size in the PSO. For the steps in MijnPSO, see applying for a PSO certificate and costs.
This is about structure, not a trick. The PSO measures the organisation as it existed in the reference year. The auditor decides which subsidiary entities to visit, and you may not remove branches or operating companies from the audit.
On this page
- What belongs to the applying organisation
- How size is counted
- What the auditor checks
- Applying separately or recertifying
- Visibility in the marketplace
- Example of a group
- Checklist for a group application
What belongs to the applying organisation
The applying organisation consists of two types of parts:
| Part | What it is | Example |
|---|---|---|
| Main applicant | The organisation that submits the application in MijnPSO | Holding company or parent company |
| Subsidiary entity | A subsidiary, operating company or franchise outlet under the main applicant | A B.V. that does construction, a B.V. that does maintenance, a franchisee |
The main applicant is always part of the application. A subsidiary can only be included if it meets the conditions in annex 2A. The main applicant is itself a separately identifiable legal entity with its own Chamber of Commerce (KvK) number that has existed for at least one year, stated under its statutory name.
For a subsidiary entity, annex 2A sets out these conditions, among others:
| Condition | What it means |
|---|---|
| Own legal entity | Its own KvK number, stated under its statutory name |
| Same main applicant | All entities fall under the same main applicant, for example the holding company |
| Ties and control | A legal or contractual tie, and central control from the main applicant |
| Ownership | The main applicant owns at least 50%, directly or indirectly |
| Franchise | A franchise organisation can only apply as a whole if the formula binds all franchisees to the PSO criteria |
| Qualitative requirements | All entities with target group employees meet the requirements. If one does not meet them at recertification, the entity as a whole does not qualify |
| No own certification | The entity does not already hold its own PSO certificate, or does not wish to keep it |
| Available for the audit | All entities with target group employees are available for the audit |
A branch or secondary establishment with only its own establishment number is not a subsidiary entity. You can have such an establishment listed on the certificate, but it can never be the main applicant on its own.
The certificate is only valid for the legal entities it was issued for. You cannot transfer it to third parties.
For the KvK documents, you must upload an extract or group overview that is no more than six months old. Changes to the structure must be included.
How size is counted
The main applicant always counts in full when calculating the total number of employees and FTE. The subsidiary entities are added on top. This means the total company size is the sum of all included parts, calculated according to annex 1B.
For the direct contribution, every target group employee who works for one of the parts counts. An employee who is seconded within a group to another entity counts as working there on a regular contract, provided the employee is employed within the group. This way, you avoid counting employees twice or not at all.
The main applicant and the included entities always count in full. An entity that was under the main applicant for only part of the reference year counts only for that part, and so do its target group employees. That is why the auditor checks the FTE per entity.
What the auditor checks
When the applying organisation includes subsidiary entities, the auditor checks per entity whether the number of FTE is stated correctly. This is checked against the total company size of the final application. The auditor checks the main applicant and the entities, and the registration with the Chamber of Commerce.
The auditor compares the FTE per entity with the total of the application. Make sure you have a separate overview of employees and FTE for each B.V. that matches the total count.
Applying separately or recertifying
If you want to certify an entity separately later, or add an entity to an existing certificate, that counts as early recertification. You submit a new final application that includes all the entities you want to include then. See renewing your PSO certificate for the rules on early recertification.
Watch out for a consequence that is often overlooked. If a certificate already applies to a KvK number that is certified again, the earlier certificate that included that number lapses. Check which KvK numbers are in your current certificate before you submit a new application.
Visibility in the marketplace
PSO-certified organisations, including any subsidiary entities, are listed in the online marketplace of MijnPSO. This happens until one year after the certification ends. The manual names this as part of supply chain encouragement, and it plays a role in the reference year of purchasing organisations.
For a group, this means that the visibility of each entity goes with the certificate. That is a reason to record the structure properly before you apply.
Example of a group
The following fictional group shows how the structure works out. The company has a holding company with two operating companies.
| Part | Type | FTE in the reference year (fictional) | Include in the application? |
|---|---|---|---|
| Holding B.V. | Main applicant | 3 | Yes, always |
| Installation B.V. | Subsidiary entity | 40 | Yes |
| Cleaning B.V. | Subsidiary entity | 25 | Yes |
| Property B.V. | Own KvK number, does not provide services to the group | 2 | Only if the conditions in annex 2A are met |
In this example, the holding company and the two operating companies are included together. The company size is the sum of all included parts. The property B.V. is only included if the holding company owns at least 50% of it and there is central control. Then its size counts and the auditor checks its FTE. If that is not the case, it stays outside the scope.
Checklist for a group application
- Does the structure in the KvK documents match the structure in MijnPSO?
- Is there an overview of employees and FTE in the reference year for each subsidiary entity?
- Does the total of all parts equal the company size in the calculation tool?
- Are the target group employees assigned to the correct entity?
- Is the KvK number of each entity entered correctly?
- Do you know which certificate lapses if a KvK number is certified again?
- Does the main applicant own at least 50% of each included entity, directly or indirectly, and is there central control?
- Does your franchise formula state that all franchisees must meet the PSO criteria (franchise only)?
Further reading
- Who is the PSO Performance Ladder for? explains which size is needed, including for a group.
- PSO audit: how does the audit work? describes the check of the files and the size.