The global economy is being severely impacted by the effects of COVID-19. To ensure long-term protection and sustainability, organisations are likely to be considering ways to reduce costs and improve business efficiencies. Simplifying your corporate structure by removing dormant or unnecessary companies is a way to achieve both of these objectives.
Benefits of simplification
The earlier the steps in a corporate simplification project are taken, the sooner your organisation can enjoy the benefits. For example:
- In these uncertain times, a project demonstrating your organisation’s focus on long term sustainability may help to improve employee motivation and focus. Assessing the need for, and undertaking a corporate simplification project now will allow you to engage your legal or compliance teams on an important project at a time when their workload may be lighter due to the impact of COVID-19.
- Cost reduction is another clear benefit of simplification. In our experience, a dormant company can cost in excess of €8,000 a year to maintain when the fees and expenses required to meet its ongoing compliance, audit and other legal obligations are taken into account.
- There are many other benefits of a leaner corporate structure, including mitigating risk, improving transparency and governance, and allowing management to focus on the core companies needed to sustain and grow the business.
What we can do
Our experienced corporate and tax teams can assist you in designing and implementing a corporate structure that is proportionate to your business needs. With your assistance, we can assess your current structure and suggest alternative structures that are more efficient. We can then outline the steps required to put your preferred simplified structure in place, and implement those steps, while advising throughout the project on any company law, tax and other legal considerations.
The most cost efficient way to design and implement a corporate simplification project is for us to consider your current corporate structure. To do this, we will need information from you. Gathering this information can take time and resources on your part. Perhaps, arising out of the impact of COVID-19, your legal or compliance team may have the capacity to take on such a project and gather the required information?
Register for our guide and analysis tools
To assist you with assessing whether your corporate structure could be simplified, and to understand the benefits to your organisation of doing so, we have prepared a Corporate Simplification Guide. This guide will provide you with the tools necessary to undertake an initial analysis of your structure and present these details to us. To receive a copy of our Corporate Simplification Guide, please register in the box on the top right hand side.
If you would like to further discuss your current corporate structure, or if you are considering a corporate simplification project, please contact Claire Lord.