Question: What Are the Benefits of a Triple Company Structure?
Answer:A fairly common company structure is the dual company structure plus a third company that only holds the company’s intellectual property (IP). This creates a ‘triple’ company structure.
In a triple company structure, the parent or holding company doesn’t hold the IP. Instead, the parent company exists only to raise finance and as a way for shareholders to invest funds in the company’s IP and the companies that operate under it. The third company, or IP company, licenses the IP rights directly to the operating company that runs the day-to-day business.
Overall, holding the IP in a separate company provides you with an additional level of separation. This can be attractive to some investors. Many listed companies are structured in this way. However, other than appealing to some investors, there aren’t many advantages to it. It’s just as beneficial to hold your IP in your parent or holding company. This parent company can then license it to your operating company. However, certain states and industries merely consider this structure to be more favourable.
