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Reasons to start-up a subsidiary company with us: here at Coddan Formations Agency, our agents have a superb understanding of how subsidiary companies work. We've been helping UK limited companies reap all the possible rewards from their subsidiary brands for years now and can offer sound advice to anybody planning such a move. Here are some of the key benefits we secure for our clients when they start-up a subsidiary company: -
Limit your liability: limited liability is one of the biggest advantages of subsidiary company startup. By using a subsidiary to launch a new product or brand name, the parent company can massively restrict the losses, costs and damages that it might incur should the project fail. For example, should legal action be brought against the subsidiary, the parent company will not be liable to pay for it.
Divide your business: if you want to diversify the culture of your limited company, subsidiary company start-up is a superb choice. This way, you register various different legal entities, all of which are conglomerated under your parent company but can be run with an entirely different management structure. This can be of particular use to a private company looking to branch out overseas, as your subsidiaries can be run in-line with local work cultures.
Launch new brands: one of the key reasons many businesses starting-up a subsidiary company is to launch a new product or service that they wish to distinguish from their other products. This separates the new brand from the old in the eyes of the buyer, thus opening up many new avenues for how it is marketed and distributed. Also, it offers a form of protection. Should the new product or service not work out, it will not be directly linked to the parent company.