Corporate simplification is a tool which can be effectively used to clean up a group structure, whether this involves the removal of a single company or multiple entities, in order to deliver both cost and compliance benefits.
Corporate simplification allows for greater control of risk, both in terms of security and the ability to remain compliant with constantly changing regulations. By removing unnecessary layers and complexities from a corporate structure, transparency is increased and the confidence of stakeholders is enhanced.
Tax efficiency is a critical issue when considering corporate simplification, in order to avoid generating a tax event for the company, its directors and shareholders. Our specialist team can provide advice and guidance in respect of corporate simplification and the implications thereof, and can provide the support and expertise needed to execute often complex plans.
A number of factors may trigger the need to simplify a group of companies, including:
Our team of specialists can provide professional guidance on corporate simplification, and will assist with the development and execution of specific plans to simplify any corporate structure.
This could involve a relatively straightforward removal of a single company from the group, or the implementation of a more complex process incorporating a number of global entities that are no longer required.
Steps to achieving corporate simplification may include:
The benefits of group simplification can be significant, both in the short-term and over a longer period of time. By identifying the profitable elements of a corporate structure we can remove any drain on resources, and allow for greater investment of time and money into those with the potential for high growth.
The main benefits include: