Group Structures
OUR GROUP STRUCTURES SERVICE
A group structure is created when one or more companies that are owned (directly or indirectly) by a single parent company. All companies in the group are therefore under the ultimate ownership and control of the parent company.
Group structures can take a variety of forms, from a horizontal group structure, vertical group structure to various forms of hybrid structures
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THE VALUE OF GROUP STRUCTURE
There can be a range of trade, regulatory, legal and tax benefits of a group structure. One of the key benefits is the mitigation of potential risk.
A subsidiary company can be used to ringfence assets or liabilities, due to each company within the group having limited liability. This could allow you to expand into a new product or market whilst safeguarding the existing trade and assets across the business.
From a regulation perspective, a subsidiary company could hold certain assets (such as intellectual property).
A key benefit of a structure is also that subject to certain conditions being met, several tax reliefs can be transferred across to group members. For example, certain tax losses and reliefs being utilised across the group rather than just the company in which they arise.