Global Entity Solutions: supporting corporate legal operations

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Investigate

Amid ever-changing rules and regulations, the last thing you need is staff mired in compliance and corporate secretarial duties. Roger BronkHead of Global Entity Solutions, Americas, and Jonathan ScrochiArea Manager, Mid-Atlantic and Mid-Western, Americas, discusses how enterprise outsourcing allows your team to focus on areas of the business where they add the most value.

Many corporate legal departments struggle to keep abreast of regulations in local jurisdictions that impact their portfolio of global entities, while managing other corporate legal matters with deadlines set on multiple time zones.

In the past, companies have been reluctant to outsource legal tasks, preferring to develop in-house teams and technologies with the aim of improving and making legal administrative work more efficient. But as a small and dispersed workforce struggled to cope with complex regulations, increased workloads, and changing work environments and processes, outsourcing has once again become a hot topic these days. last years.

Even before Covid-19, the legal departments of multinational companies had started to modernize their workflows and systems by implementing new software. This shift has accelerated, forcing service providers to also adapt and refine their solutions for software technology delivery and systems management.

From a jurisdictional and regulatory perspective, many business registries and government institutions have moved to e-filing and other modernized processes.

Process upgrades as well as the overhaul of corporate legal administrative tasks have reduced headcount and investment in technology.

From a regulatory and administrative workload perspective, countries around the world have become more demanding and rigorous. For example, requirements for Know Your Customer (KYC) documents have increased. Additionally, many countries are adopting and implementing the requirement to register Ultimate Beneficial Owners (UBOs) to prevent financial and economic crimes such as money laundering, terrorist financing, tax evasion and corruption. . This increased the load and expanded the list of tasks needed to be compliant.

Fortunately, a new generation of one-stop shops has emerged, providing the exact service that overburdened corporate legal departments need.

What do these changes mean for the legal departments of multinationals?

Many legal departments are understaffed and forced to rely on third-party vendors and local partners to keep up to date with new laws and regulations.

While local jurisdictional mandates are vitally important and must be properly maintained in order to keep entities in good standing, the administration involved in meeting these obligations takes time. This not only increases the workload, but also requires specialist knowledge to meet the standards of many and varied jurisdictions.

Multinational companies face a variety of regulatory risks when operating in different geographies and countries, while struggling with downsizing. From a legal point of view, when corporate changes take place – such as changes in directors, changes in company names, changes in entity type, among others – documents must be submitted and updated accordingly to reflect changes in business registers.

Failure to maintain entities in good standing and keep up-to-date records can result in legal fees and penalties. It can also impact and delay M&A transactions or lead to inaccurate regulatory reporting, in addition to limiting the execution of other common day-to-day corporate actions. The number of consequences can be considerable.

Increased regulation requires expert knowledge

Each country is different. If a legal department is trying to centralize paperwork, staff need to understand all the processes involved. For example – depending on the jurisdiction – incorporation documents, provision and filing of KYC documents as well as UBO register may be different from country to country.

Requirements such as the number of board meetings to be held and the filing of board minutes and resolutions vary in their number and manner of recording. These examples of corporate governance requirements and regulations around the world make the legal work of companies cumbersome while requiring expertise.

Why Business Outsourcing Might Be a Smart Move

The incentive to outsource corporate secretarial work is driven by the need for managers to simplify their processes and seek cost-effective solutions.

As the industry changes and evolves, technology plays a bigger role in risk management and data analysis. However, the cost of updating – constantly investing in and updating IT systems to take account of legal and regulatory changes – can be prohibitive.

One solution is to outsource these functions to a global third-party provider, allowing your legal department to benefit from the expertise and economies of scale that its staff and operational executives can bring. Clients are increasingly looking for a trusted global specialist to help them navigate the complex legal and regulatory environment in which they operate.

Until now, one of the limiting factors has been the scarcity of modern and robust service providers. However, one-stop shops are emerging. These providers deliver the insights, services and data management that customers need, while delivering the high standards of quality and customer service that they expect. These specialists relentlessly re-evaluate their service offerings and invest in their processes and technology to stay ahead of the curve to provide customers with the expertise and solutions they need.

How Intertrust can help you

  • Our team of over 4,000 experts from around the world is on hand to help your legal department run more smoothly, so you can focus on your core business.

  • Our Global Entity Solutions department offers a wide range of corporate secretarial services. We are experienced in maintaining entities within global portfolios and cover over 150 jurisdictions. We also advise on changing local mandates and corporate secretarial requirements.

  • Using state-of-the-art technology, we provide support to streamline, standardize and ease the administrative workload, customizing our service to suit your internal legal structure.

  • At Intertrust Group, we relentlessly develop a framework to meet market demand and set ourselves apart from our competitors.

  • We are equipped with the talent, technology and expertise you need from a single solution.

Visit our website and contact us for more information and speak to our team of experts today

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