The design of equity structure generally involves many issues, and the equity design and partner shareholding methods should match the contribution size of each partner, the type of enterprise, and take into account long-term sustainability. At the same time, it is necessary to design based on the demands of different shareholders of the company.
The founder or core team's demand for control over the company: The founder or core team tends to hold shares in a limited partnership, usually with the actual controller of the company serving as the general partner and other companies or individuals serving as limited partners. Because limited partners only have dividend rights and no decision-making power, this method isolates the voting and dividend rights of holding companies or individuals, which is beneficial for the actual controller to control the company.
The demand of some shareholders to participate in important decision-making matters: such shareholders may include important entrepreneurial members, investment institutions, professional consultants, etc. Their demand needs to be achieved through direct shareholding. Through direct shareholding, both companies and individuals have complete voting and dividend rights. Individual shareholding will only face tax issues after natural persons receive dividends.
Some shareholders only hope to obtain dividends to avoid tax claims: In order to prevent natural persons from paying taxes on dividends, individuals can first establish a wholly-owned company and then hold shares through the company. Because dividends between companies do not involve income tax, they can be retained by the wholly-owned company, saving tax costs. By setting up a shareholding platform structure, the equity is consolidated and control is centralized, which means placing the equity of shareholders within a single entity and exercising voting rights through this entity, ultimately achieving the goal of controlling the company. The commonly used shareholding platform structures include limited partnership enterprises, limited companies, trust plans, etc.
This article is designed by Jinan Partnership and provides technical support. For more detailed and exciting content, please click on our website http://www.aibangwang.cn We will wholeheartedly provide you with satisfactory service.