Starting a Business ? Why a Dual Company Structure Sets You Apart.

Vala Setareh
May 5
2 min read

When starting a business or setting up a new business, choosing the right company structure is critical. A dual company structure offers superior protection for Australian entrepreneurs launching or expanding their ventures.

What is a Dual Company Structure for Business Set Up?

Starting a business with a dual company structure involves creating two distinct entities working in harmony:

The Holding Company Structure

Owned by founders and investors
Protects critical business assets:
- Intellectual property
- Real estate
- Investment capital
- Valuable equipment

The Operating Company in Your Business Structure

100% owned by the holding company
Manages day-to-day business operations:
- Customer contracts and services
- Employee agreements
- Supplier relationships
- Sales and delivery

Why Choose This Company Structure When Starting a Business?

Maximum Asset Protection for New Businesses

When you're starting a business, protecting your assets from day one is crucial. With this company set up, operational risks stay confined to the operating company while your valuable assets remain safe.

Example for Starting a Business: A new tech startup faces a customer dispute. The customer can only pursue the operating company, protecting the holding company's intellectual property and capital.

Investor Appeal in Business Structure Decisions

Investors look for smart business structures when funding new ventures. A dual company set up demonstrates:

Professional risk management when setting up a new business
Clear asset protection strategy
Sophisticated approach to company structure

Strategic Growth Planning from Business Start

This company structure enables ambitious growth when starting a business:

Launch new ventures confidently
Enter new markets with reduced risk
Scale operations while maintaining core asset protection

Comparing Company Set Up Options

Business Structure	Starting Cost	Asset Protection	Investor Appeal
Sole Trader	Lowest	None	Low
Partnership	Low	Limited	Moderate
Single Company	Moderate	Good	Good
Dual Company	Higher	Excellent	Excellent

Setting Up a New Business with Dual Company Structure

Method 1: Optimal for Starting a Business

Create a new holding company above your existing business:

Steps for Company Set Up:

Incorporate holding company during business start phase
Transfer business assets strategically
Secure necessary approvals
Establish IP ownership clearly

Advantage: Clean slate when starting a business

Method 2: Restructuring Existing Business

Convert your current company structure:

Business Structure Transition:

Create new operating company
Transfer operational contracts
Maintain asset separation
Update business documentation

Essential Considerations When Starting a Business

Tax Planning: Crucial when setting up a new business structure
Legal Compliance: Essential for business set up success
Documentation: Critical for company structure integrity
Professional Advice: Vital when starting a business

Key Takeaway for Setting Up a New Business

Starting a business with a dual company structure provides great protection for Australian entrepreneurs. This business set up shields valuable assets while creating a foundation for sustainable growth.

Ready to Start Your Business? Contact experienced business lawyers specialising in company structure and business set up to create your optimal dual company arrangement.