Business structures
Business structures
Business structures within an organisation can play a huge role in assisting the development and growth of a business. Business structures are historically used to ring fence business assets and more importantly, can be used for deferring Tax and VAT liabilities.
Asset holding divisions
Most business fail to grasp the concept of ring fencing business assets. Ring fencing these assets could potentially save your company thousands in re-purchasing this asset in a worst case scenario i.e. Insolvency Action.
"9 out 10 businesses in the UK could protect themselves by applying simple ring fencing techniques" according to the DTI group of companies.
Group structures
Departmentalising sections of a business is used by over 72% of UK’s businesses for all types of reasons.
· Protect Business Assets.
· Defer tax and vat liabilities within a group structure.
· Credit lines for each company.
Is your business based around a single Company to operate your business affairs or are you are paying corporation tax on business profits?.
Give us a call on 0845 2005177 and learn how better off you could be by restructuring and departmentalising and ring fencing your business assets.
case study
'In December 2003, our engineering company had taken a turn for the worst when we had lost orders to the Middle East. Our sales had dropped by 60% and our overheads were just a nightmare. Our relationship with our bankers had deterred, our business manager suggested calling in the receivers. With a debtor book worth over £425,000 and an asset register worth over £1.6m we took the unorthodox approach to search for a partner. raisefinance.co.uk was given the task to consolidate and then raise cash. Their attention to detail was second to none; by restructuring our company and raising finance, I believe their prompt action and the advice from their business advisor saved our company from bankruptcy. ' |
Mr J Brown, Finance Director |
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