Our company is getting a little cumbersome in terms of structure and it's becoming a bit of a headache to manage everything. I know an expert is necessary for this, but some basic pointers may help me set things off in the right direction.
For some background, our company has been growing quite significantly over the past couple of years and it's getting to the point where the mess of the original structure - from inception of four people in a small office to around fifty people in the small office x3 is not really working. We have skills and manpower shortage, not in the area of our product (consulting for argument's sake) but in the supporting functions and the flat structure that was initially employed is becoming inefficient.
A part that we need to address, and what I am really seeking direction on is the corporate structure; this should then feed into optimisation for the regular operations. The core business operates as four seperate Japanese entities, each providing a different variation of consulting to other businesses in the business digitisation field - these companies are really just different divisions. There is one company in Dubai (seperate entity) and one in the EU (subsidiary of Japanese company) and one owner of everything, natural person, no holding company. We are already at a point where we are maxing out our inter-company transactions to the more efficient tax jurisdictions, and the 35% CIT in Japan is just not favourable. Much of the financial and operations work is carried out in Dubai, although this is becoming strained. It seems the normal thing to do is to operate a holding co., in Japan - will need to seek expert advice on this - although I'm not convinced this is as beneficial due to the tax landscape. The next (and likely better) option is set up a holding-operating co for the Japanese co's overseas and use this as the corporate HQ - how that co. will be liable for tax in Japan is another question.
If anyone has any experience they can share, it would be greatly appreciated.
For some background, our company has been growing quite significantly over the past couple of years and it's getting to the point where the mess of the original structure - from inception of four people in a small office to around fifty people in the small office x3 is not really working. We have skills and manpower shortage, not in the area of our product (consulting for argument's sake) but in the supporting functions and the flat structure that was initially employed is becoming inefficient.
A part that we need to address, and what I am really seeking direction on is the corporate structure; this should then feed into optimisation for the regular operations. The core business operates as four seperate Japanese entities, each providing a different variation of consulting to other businesses in the business digitisation field - these companies are really just different divisions. There is one company in Dubai (seperate entity) and one in the EU (subsidiary of Japanese company) and one owner of everything, natural person, no holding company. We are already at a point where we are maxing out our inter-company transactions to the more efficient tax jurisdictions, and the 35% CIT in Japan is just not favourable. Much of the financial and operations work is carried out in Dubai, although this is becoming strained. It seems the normal thing to do is to operate a holding co., in Japan - will need to seek expert advice on this - although I'm not convinced this is as beneficial due to the tax landscape. The next (and likely better) option is set up a holding-operating co for the Japanese co's overseas and use this as the corporate HQ - how that co. will be liable for tax in Japan is another question.
If anyone has any experience they can share, it would be greatly appreciated.
