Grateful if somebody could confirm (or not) my thinking in the following situation.
My client A Ltd, a UK limited company, is 100% owned by Mr A.
Mr A has formed a new German company (B GmbH), 50% of the shares owned by A Ltd and the remaining 50% owned by Mr A.
My thinking is that as A Ltd does not own more than 50% of the shares of B GmbH, there is no parent/subsidiary relationship and therefore group accounts are not required. A Ltd and B GmbH are related and the relevant disclosures will need to be made in respect on intercompany trading and balances.
I'm just concerned that as Mr A owns 100% of A Ltd his shareshareholding in B GmbH also needs to be taken into account when deciding if B GmbH is a subsidiary of A Ltd. I think not but I'd be grateful for confirmation.