Promoter restructuring & succession planning
With the complexity in business dynamics ever increasing, promoters always have the fear of losing out their personal assets to mitigate legal claims.It therefore becomes important to de-link personal assets vis-à-vis business assets.
Additionally, promoters are looking at flexibility in distribution of wealth to the next generation.The thought of introduction of Estate Duty Tax in India is a double whammy, making promoters look at creating a structure that would mitigate the tax proposition when introduced.
We work closely with promoters and their family offices in restructuring the group as well as plan for the succession, keeping in mind the key objectives as well as tax and regulatory considerations. We act as trusted advisors to the promoters on the following:
- Charting out and implementing an effective succession roadmap – understanding legacy (business as well as family) and succession objectives, brainstorming tailor made succession models, appropriate entity structure (trusts vs LLP vs management company) for dissecting management from ownership while retaining reporting to stakeholders and devising tax effective income payout mechanics for core family members/beneficiaries
- Shareholding realignment advisory
- Tax effective consolidation/realignment of businesses through internal restructuring
- Engraving tax effectiveness in existing group structure to reduce effective group Effective Tax Rate (ETR)