Hi everyone, has been a while since I've been on the forum, I love being here unfortunately haven't had much time for anything. It's nice to see that you all are still here
Of course I need some advice and I believe I can get the answer here
So, an established company registered as a cc with only a sole member, it runs it's day to day business as normal, however the company decides to open a branch where they will be shares split between the current member and one or two more people who will only have shares in the new branch. The branch will operate by itself so assests, liabilities, income, expenditure will be limited to the new branch BUT the invoicing, banking, billing etc needs to be run through the current company for which the branch will pay a monthly fee. Will not work if a new company is opened as it has to use the structure, bee certificates, tax, wca, bank accounts etc. The question is how the new branch can have equity split between it's members while this branch has extra owners? A profit sharing aggreement won't work because there is no equity attached to it as far as I understand. Bottom line the new people need to ensure that they have this business on paper.
What are the possibilities, would a holding company be the answer, what are the implications and so on? Thanking you in advance.