Running more than one company? Make sure the structure still makes sense.
Owner-managed businesses rarely plan their group — it grows around them. We help owners with multiple companies check whether the structure still makes commercial, financial and tax sense — and then look after the accounting across all of it.
It rarely starts with “I need a group restructure”.
It usually starts with a question like one of these. You don't need to have the answer already worked out.
“I've got three companies now and I'm not sure they're set up properly.”
“Should I have a holding company?”
“Why have I ended up with so many companies?”
“Should these businesses sit underneath one parent company?”
“Is my group structured tax-efficiently?”
“Should this activity be in a separate company?”
“I've bought another business — where should it sit?”
“I can see each company's accounts, but not the group as a whole.”
A collection of companies isn't always a sensible group.
Each company is usually set up for a good reason at the time. The trouble is that nobody steps back to look at how they fit together.
- The first companyThe original trading business.
- Another ventureA new idea, set up alongside it.
- A property companyBuying premises or investment property.
- An acquisitionBuying another business — and deciding where it sits.
- A separate activity or SPVSplitting out a service, a project or a risk.
- Several companiesOwned side by side, with overlapping costs, loans between them and no clear picture of the whole.
Six questions we ask about every group.
There's no standard answer. Not every multi-company business needs a holding company, and not every extra company is a problem — the point is to work out what makes sense for your business and the people who own it.
Commercial logic
Does each company have a clear job? Does the way they're arranged reflect how the business actually works — and where it's heading?
Tax considerations
How the structure affects corporation tax, the movement of profits and dividends between companies, and the tax implications of a future sale or succession — considered for your circumstances, not as a generic scheme.
Financial and reporting clarity
Can you see how the group is performing as a whole, not just company by company? Are loans and recharges between companies tracked and understood?
Unnecessary entities and complexity
Companies that no longer serve a purpose still cost money and admin every year. We'll say where something could be simplified or closed down properly.
Holding and parent company considerations
Whether a parent company would help — and if so, how to get there from where you are now, in the right order, with your solicitor involved where legal work is needed.
Ongoing accounting across the group
Once the structure is right, keeping it running well: accounts, corporation tax and filings for every company on one timetable, with a group-level view through Financial Clarity.
Four recent situations, each one different.
Many of the businesses we've started working with recently have had more than one company — often with a structure that has evolved over time rather than been deliberately designed. Four situations we've come across and reviewed:
Several companies and group activities with no parent or holding company bringing them together — so we looked at whether one would help.
A similar arrangement, where one company appeared to serve little useful purpose — so we reviewed whether it was still needed.
A business that had accumulated a number of companies over time, with a structure that had become more complicated than it seemed to need to be.
A business where our review identified that a different company and group structure could potentially be more tax-efficient and better suited to how the business now operates.
Then we put it in place properly.
Groups & holding companies
Holding company structures, group reorganisations and new subsidiaries, with the accounting, tax and company-secretarial work coordinated properly around the change — bringing in legal or specialist advice where needed.
Company formations
New limited companies, LLPs, CICs and other appropriate entities — set up properly from the start, not just filed. Formation is part of the service, not the main event.
Shares & ownership
Additional share classes, alphabet shares, changes to share structure and the company-secretarial work that goes with it. Where the structure itself needs designing rather than simply implementing, that's a distinct piece of advice — and where solicitor input is the right call, we'll say so.
Company changes & closure
Company-secretarial changes, restructuring, and closing a company properly — including preparation ahead of a members' voluntary liquidation where relevant.
MBS Accountants have been doing our company accounts for more than 7 years and their attention to detail and depth of knowledge is exceptional. Jason and the team always address all our queries and doubts promptly.
Questions owners ask us about groups.
Short answers here. Every situation is different, so treat these as a starting point rather than advice for your business.
Do I need a holding company?
Not necessarily. A holding company can make sense where there are several trading companies, valuable assets to keep separate, or plans to sell or bring in investors — but it adds a company to run, and for plenty of businesses it isn't the right answer. It depends on what the companies do, who owns them and where the business is heading.
Can one limited company own another?
Yes. A company can own shares in another company, and that is how a parent (holding) company and its subsidiaries are formed. How the ownership is arranged — and how you get there from where you are now — is what needs thinking through.
When does it make sense to use separate limited companies?
Separate companies can help keep different risks, assets or activities apart. They also bring extra accounts, filings and costs, and can affect how tax works across the businesses. The question is whether the separation is doing a useful job — not simply whether it's possible.
Read more: Group company structures: when do they make sense?
How should I structure multiple limited companies?
There's no single right shape. We look at what each company does, how money and assets move between them, who owns what, and what you're planning next — then recommend a structure that makes commercial, financial and tax sense for your situation.
How do group accounts and group reporting work?
A parent company may need to prepare consolidated accounts for the group, although exemptions are available in some circumstances. That's separate from management reporting: even where statutory consolidated accounts aren't required, a group-level view of the numbers can be extremely useful for understanding how the businesses are performing together.
Read more: Group company structures: when do they make sense?
I've already got several companies. Is it too late to change the structure?
No. Existing groups can often be reorganised, but changing an established structure needs more care than designing one from scratch. Tax, legal, accounting and commercial consequences all need considering before anything moves. We can review where you are now, what you're trying to achieve and what the practical options are.
What happens to the structure when I acquire another business?
It depends on whether you buy the company itself or just its trade and assets, and on where it should sit alongside what you already own. It's worth deciding this before the deal completes rather than after — that's usually when the options are widest.
More on groups and company structures.
Changing Shareholders or Share Structure: What Business Owners Need to Think About
Bringing in a shareholder, giving shares to family or creating new share classes? The tax, accounting and filing points to consider, and where you need a solicitor.
Group Company Structures: When Do They Make Sense?
When a group of companies is worth the extra work, when it isn't, and what running one well involves, from intercompany balances to group accounts and VAT.
When Does a Business Need a Holding Company?
Most businesses don't need a holding company, but some benefit from one. When it makes sense, the tax points to understand, what it costs to run, and its limits.
You don't need to arrive with the answer already worked out.
Tell us what you're trying to achieve and we'll help identify the right structure — working alongside your solicitor where legal advice is the right call, rather than in place of one.
An accounting firm that's handled this before.
Not sure your structure still makes sense?
Tell us which companies you have and what you're trying to achieve. We'll help work out the right next step and whether MBS can help.