How well do you manage your legal entities, whether these are incorporated in Switzerland or elsewhere? And why would you pay more attention to that administrative burden on your business?
Many high-growth (and other) companies underestimate the importance of legal entity management, and the risks of not paying due attention to how these entities' records are organized and kept up to date.
Legal entity management, along with the corporate secretarial work it entails, is often an after-thought for companies and their legal department heads alike – but how wrong is that approach.
How your legal entities are managed will play an important role in allowing your business strategy to develop. This is a responsibility and oversight that should always sit with the legal department – or your preferred legal counsel in charge; not with finance, and not with tax.
When entering into major transactions such as a restructuring, an acquisition, a spin off, or divestment, or when getting prepared to sell your shares, or even when dealing with certain state agencies and customs authorities, it will be crucial to have a well-structured, up to date and compliant legal entity organization in place. Having anything less than that may lead to deal-breaking delays, unnecessary costs, and impact how counterparts perceive your business. The fact is: having a solid legal entity management in place at all times isn't just nice to have – it's a must.