Economic crisis - loss of economic efficiency!

14.2.2014

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Taking over the company structure is the solution.

Introduction

APOGEO’s client is a company that owns and/or has a significant influence over a series of companies working in property development. The client operates in the Czech Republic and abroad, and formerly controlled numerous Czech and foreign entities. In the boom years, the number of these companies corresponded to the need to expand, but during the economic crisis of 2007/2008 they were no longer economically justifiable or effective. The costs involved in the everyday administration and upkeep of these companies, i.e. bookkeeping, submitting tax returns (corporation tax, natural person income tax), audits, consolidation, reporting, rents and HR costs, not only exceeded any positive outcomes, but in some cases - as a result of poor transparency - led to our client’s loss of effective control over the company.

Progress of the job

APOGEO agreed with the client to take control over the administration of these companies and ensure all the necessary services in carrying out the following steps:

  • Mapping the ownership structure, staffing and the supplier-customer relationships.
  • Carrying out regular financial, accounting and tax checks on the individual companies and identifying key problems.
  • Actively dealing with the facts as they were determined, providing accounting and tax consultation, ensuring a nominal service and providing SMART Office services.
  • Taking over the entire administration of companies, liquidating and erasing unnecessary entities.

Conclusion

Today the client’s earlier foreign structure has been pruned back to a third of its size. All companies in Central and Eastern Europe are now under the client’s control, proper accounts are kept and are part of a group reporting arrangement.

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