Company Structure

Company Structure

Didn't find your answer?

client owns Co A 100%

they now need a new company for a new venture - Co B this will be a joint venture with 50% owned by a third party. Client wants their 50% owned by a new holding company Co C - owned 100% by the client

Co C will not hold any shares in co A which will be retained by the client personally.

Am I missing something? can't really see the point of the holding company C, only seems to add complication and extra cost to the client.

Would company B bet better off just being owned by Co A and keeping it at 2 companies?

some reassurance or enlightenment would be appreciated!

Replies (2)

Please login or register to join the discussion.

Nichola Ross Martin
By Nichola Ross Martin
31st Jul 2015 09:01

Some people like lots of companies

I guess is that this keeps the joint venture at arm's length from the individual, so that may be why.

Thanks (0)
avatar
By gwilkinson
31st Jul 2015 10:17

A number of reasons

Firstly, I would ask why your client thinks this is the best structure for them.

Perhaps they want to hold the investment in the joint venture separately for a future sale?

Remember if company A holds the investment in company B you will need to consolidate the investment in the joint venture in consolidated financial statements under FRS9/FRS102 (unless exempt).

 

Thanks (0)