Operating via a management company

Company directors sometimes also provide their services via a management company, of which they are in turn a company officer. Two structures are possible here:

• either the management company performs the duties or occupies the office within the company and designates the individual as its legal representative; or
• the management company is a service provider – not an officer – with respect to the client, meaning that it provides its services under a service agreement entered into with the client.

Savings can be made from both a tax and a social security viewpoint. From a tax viewpoint, each case can be examined for any further savings to be realised within the management company (e.g. using contributions of other business activities and assets, or distributions of profits through dividends).