Corporate Simplification

A lot of organisations tend to engage in significant acquisitions or use special purpose vehicles to keep the business growing and protect the parent company from financial risks. The problem with this, however, is that it creates an elaborate group structure that can be more disadvantageous than beneficial.

For one, running multiple companies both locally and overseas puts additional cost and governance burden on the entire organisation. This is because there can be dormant entities that require ongoing maintenance costs all year round. Inefficiencies also run high since there tends to be redundancies in functions, wasting significant amount of management time. Additionally, an elaborate group structure may not be viewed positively by the HMRC, increasing the risk of intervention.

Simplifying corporate structure for improved governance, financials, and compliance

Corporate simplification is an objective means to streamline or justify complex corporate structure. This can be done by removing dormant companies within the structure or by reorganisation should the parent company only wish to sell a portion of the business. Corporate simplification offers the benefits of:

• Reduced complexity in corporate structure
• Long-term strategic cost
• Preservation of high performing entities
• Improved governance
• Improved reporting structure and compliance

Millwood Accounting has a specialist corporate simplification team that can assist your organisation in going about corporate simplification seamlessly. We have a proven track record in providing strategic advice and guidance in choosing and implementing the most appropriate methods for closing and removing companies from a group structure, orderly wind down, and strike off. We have also worked with organisations across all industry sectors and multiple jurisdictions, making us a good fit to assist in your organisation’s simplification process.

Our end-to-end corporate simplification solution include:

• In-depth discussion with stakeholders
• Due diligence and planning related to accounting, legal, and tax
• Development of multiple solutions, ranging from technical advisory to complete project management
• Obtaining approvals, consents, and clearances from banks and stakeholders
• Development and execution of asset transfer agreements
• Assistance in capital reductions, dividends declaration, and other steps for balance sheets simplification
• Strike off or company dissolution