Payrow for Businesses with Complex Ownership Structures

July 14, 2022

Complex Ownership Structures

Payrow has launched financial service support for businesses with complex ownership structures. Leveraging its extensive experience in the market, Payrow has begun offering maintenance for businesses with a complex ownership structure in the United Kingdom.

The greatest value Payrow can provide its clients lies in identifying the legal entity or structure of entities in which business is conducted, then offering the most appropriate services for them. These can be companies, partnerships, private foundations, and trusts, so they need to be differentiated carefully.

With a team of experts specialising in operating with such businesses, Payrow can effectively upload the required number of beneficiaries during business registration and offer all the financial services clients need from the first day of business operation.

Payrow implemented a strong KYC process providing an additional level of verification and security. Their services are considered reliable and easy to use. Let's look at the updates and see what types of businesses with complex ownership structures we can deal with.

Rad more about Types of Business Structures in the UK.

Complex Ownership Structures

Complex ownership structures can be found in companies with various overseas divisions or those linked by a chain of ownership. In such companies, there are several levels of corporate officials, shareholders, and persons with significant control (PSCs), which makes it quite difficult to identify the owners. Payrow reviews all incoming applications and examines what structure the client has to meet their commercial and personal goals.

It is common for businesses to enhance their existing operations by setting up an additional entity or entities and creating a group structure that can offer previously unavailable non-tax benefits including asset protection, succession planning, business flexibility, and access to new equity partners.

Here is an example of a complex ownership structure:

Complex ownership structure 1280x780.png

Let’s consider the scheme in more detail. You can see multiple levels of indirect ownership. 

  1. The blue boxes in the middle (AB, BC, and CD) are beneficiary companies.
  2. Mr. B has a 36,5% interest in the target company (50% x 73% = 36,5%)
  3. Mr. D has 50% and Mrs. C has 9%. 
  4. You may note that Mrs. C has both direct and indirect interests in the EFG Group. 

As you can see, such companies lack transparency. This becomes a barrier for most traditional banks, as the provision of banking services to enterprises with a complex ownership structure poses unique challenges. The main problem is that even simple services, such as opening a bank account, often require a long wait and multi-stage paperwork. 

Even if the bank agrees to provide services to a company with a complex structure, you may lose the time it will take to wait for the verification of a large number of non-standard documents, certificates, and statements. It is difficult to avoid potential problems with servicing since banks specialise in a standard set of services and it is difficult for them to quickly consider a unique case.

In this regard, Payrow decided to dive into solving this problem and automate the process, offering innovative, fast, and secure solutions.

Dinu Popa, Head of Compliance and MLRO at Payrow comments: “Business needs in our markets are constantly changing, and at Payrow we are perfectly equipped to support complex ownership structures. With our new service, these businesses don’t have to jump through so many hoops and gather endless paperwork trails. Payrow's exceptional ability to work with complex ownership stems, firstly, from the team's extensive experience in working with large corporate structures. Secondly, our unique onboarding technology facilitates breaking down complex structures, and, with the help of best-in-class identity verification providers - securing compliant onboarding. Lastly and perhaps most important, is the personal touch of a dedicated complex structures team being there for our customers with answers and expert knowledge.”

Payrow invites its clients to check out its range of services and price lists and draws special attention to the possibility of consulting with an expert for long-term support. This is designed to ensure that clients can remain confident in the stable development of their businesses based on clear and accessible services and consultations. It is much easier for businesses to process payments, calculate taxes, and store documentation and financial reports when everything happens in the same place.

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