Restructuring your business: Is it time to streamline your group structure?

As businesses grow and evolve, their corporate structures often become more complex. Acquisitions, expansions, and strategic changes can lead to unnecessary holding companies, dormant subsidiaries, and an increasingly cumbersome group structure. Left unchecked, this can create unnecessary costs, compliance burdens, and governance risks.

If your business has undergone significant change over the years, now could be the right time to assess whether your corporate structure is fit for the future. Streamlining your group structure can deliver cost savings, improve efficiency, and create a more agile foundation for future growth. But where do you start?

Why should you review your group structure now?

Many businesses are aware they have redundant or inefficient entities but put off tackling them because restructuring feels like a daunting project. However, several key factors make now the right time to act.

1. Reducing costs and complexity

Every company in a group structure—whether active or dormant—comes with administrative costs, including:

• Annual filings and compliance fees
• Legal and regulatory obligations
• Internal time spent managing entities

Even dormant companies can cost thousands of pounds per year. Multiply this across several unnecessary entities, and the savings potential becomes clear.

2. Strengthening corporate governance

As businesses expand, maintaining oversight of multiple entities can become complex. A streamlined group structure enhances transparency, simplifies decision-making, and reduces governance risks. It also ensures leadership teams have a clearer view of operations, financial performance, and regulatory requirements.

3. Supporting future growth and agility

A well-structured business is more adaptable to changing market conditions, new opportunities, and strategic expansion. By simplifying your corporate structure, you can:

• Ensure faster, clearer decision-making
• Enhance operational efficiency by reducing administrative bottlenecks
• Free up resources to invest in growth, innovation, and client service

As businesses evolve, having the right structure in place allows for smoother expansion, better risk management, and stronger financial stability.

4. Staying ahead of regulatory changes

New global tax and compliance regulations could increase reporting obligations for businesses with complex group structures. Reviewing your setup now can help ensure you remain compliant and avoid future regulatory burdens.

How to approach restructuring

If you’re ready to review your group structure, the next step is identifying which entities to close or reorganize and determining the best approach.

Key methods for restructuring

1. Dissolution (Deregistration) – The simplest way to remove a dormant entity with no assets or liabilities. In the UK, this can be done via Companies House (Form DS01).
2. Liquidation – A more formal process, suitable for companies with trading history or assets, providing directors with legal protection.
3. Mergers – In some jurisdictions, two companies can be merged into one, eliminating redundant entities efficiently (note: not currently available in the UK).
4. Redomiciliation – In certain cases, businesses can change the country of incorporation to align with their current operations.
5. Changing Tax Residency – Adjusting a company’s tax residence by shifting management and control can sometimes remove an unnecessary entity from a group structure.

Getting started: Key considerations

Restructuring doesn’t have to be overwhelming, but it does require planning and coordination across finance, legal, and tax teams. The key is project management—whether handled internally or with external support.

Key steps for a smooth transition:

• Review your group structure – Identify entities that no longer serve a purpose.
• Start with quick wins – Tackle dormant companies or redundant holding structures first.
• Assemble the right team – Involve finance, legal, and tax experts to manage risks.
• Ensure compliance – Understand the tax, legal, and governance implications of changes.

Is it time for a spring clean of your business structure? 

A well-structured business is more efficient, agile, and prepared for future opportunities. While restructuring might seem like a complex project, the long-term benefits—cost savings, improved governance, and greater operational flexibility—make it a valuable investment.

If you’d like to explore how streamlining your corporate structure could benefit your business, our team is here to help. Get in touch with one of our specialist accountants to start the conversation on 01932 830664 or email enquiries@wardwilliams.co.uk