Where a Group has a long and successful trading history this can create a complex corporate structure with obsolete subsidiaries. These subsidiaries have an ongoing administrative cost and pose a potential compliance risk for Directors.
Our recent experience shows that each additional company in a corporate structure costs more than £7,500 a year in external overheads in addition to management time and internal resources. For complex and for large corporate structures, the potential savings from streamlining and simplification can be substantial.
BDO’s Corporate Streamlining team will work with you to:
- Review your existing corporate structure
- Understand each entity and look for potential obstacles to its elimination
- Consider the relative merits of Dissolution versus Members’ Voluntary Liquidation (‘MVL’)
- Support you in implementing the required strategy and achieving success
Members’ Voluntary Liquidations
Where a solvent Company no longer has a purpose or is no longer required the directors may wish to instigate a Members’ Voluntary Liquidation. This is a tax efficient way of distributing the assets and profits of a company to its shareholders.
Our dedicated MVL team will work with you to carefully explain the process and provide tailored advice regarding your exact circumstances.