Accountants, auditors, tax, business and legal advisors in Makati City
About ECOVIS FINTAX
We specialize in a wide variety of services including accounting, auditing, company setting up, business consulting, IT consulting and liquidation of companies which can help you achieve all of your personal and business goals.
The main motivating factor for succession is the will of the current owner and the successors. The question is whether the family business is in a state of so-called succession readiness?
In principle, the parties involved endeavour to avoid difficulties in the planned succession.
However, it is known that “the devil is in detail”.
It is therefore necessary to analyse the attitude of both parties.
Does the current owner and the successor expect the same thing?
Does the willingness and readiness of the two generations to change occur at the same time?
The key to success is communication!
Moreover, the common values of both succession generations and the identification of the successors with the family business are crucial.
It is worth formalising the existing generation agreement to some extent – a set of principles which the family wants to follow in family, personal and business relations can be written down in the so-called Family Constitution. This is a good place to define the highest goals and values – not of the company – but of both generations. Succession is a whole structure of property transfers in which, even if a business has a central place, it is generally not the only asset.
Therefore, the help of experienced consultants in drafting the Family Constitution is indispensable – to help determine and decide whether such a code should have the character of a legal document, i.e. a binding agreement, or the form of a declaration, without creating any obligations.
Have you encountered a Family Constitution in your business practice? How do you assess the need for such a document in a multi-generational company?
In recent years, there has been strong growth in start-ups in Pakistan. According to the Security and Exchange Commission of Pakistan (SECP), the country has moved up in the World Bank’s Ease of Doing Business Index for the second consecutive year since 2019, going from 130th to 72nd in the ‘Starting a Business’ category.
Over the past few years, Pakistan has seen many start-ups and a boom in various branches of industry. This includes textiles, construction, IT and the cement industry.
How exactly have Start-Ups Boomed and Flourished during a Period of Pandemic?
Pakistan is one of the eight fastest growing economies in the world. This growth has come about as a result of the structural reforms started by the current government and the flagship project of the Belt and Road Initiative (BRI), the China-Pakistan Economic Corridor (CPEC).
Small and medium-sized enterprises in Pakistan account for 90% of economic growth, but despite this they only take up 7% of the credit provided by the financial sector. Large scale manufacturing industries have also reached a 16-year high level of growth: 14.85% in the financial year 2021. This growth has equally been encouraged by the government’s new policies which have led to expansion in sectors such as textile, construction, food, tourism, and automotive.
Would you like to invest in Pakistan? We can help you to locate your business here. Areeba Ahmed, Consultant Company Secretarial Services, ECOVIS FAMCO Associates, Karachi, Pakistan
Support for Start-Ups in Pakistan
Regulatory bodies have collaborated with each other to enable an omni channel for company incorporation services. This means that they can provide services from start to finish, from incorporation to liquidation. This gives clients a unified experience where they can obtain all the services their company might need in one place. The Board of Investment of Pakistan is encouraging both local and foreign investors and providing opportunities for them to play significant roles in enabling entrepreneurs to boost the ease of doing business. In general, Pakistan provides an optimal environment for the prosperity of small businesses and multinational companies alike, as it provides low-cost factors of doing business, explain the Ecovis advisers. 55% of the total population of 220 million is under 30 years of age. This ensures that labour is readily available in various skillsets. The workforce is also very diverse, ranging from high-skilled technical resources to low-cost labourers. The fast-growing logistics sector ensures that distribution channels are always connected, providing a smooth service from start to finish.
In addition to our colleagues of ECOVIS SEE (tax and accounting) we welcome our new partners from ECOVIS FinAudit headquartered in Belgrade to our network.
ECOVIS FinAudit was founded on the 9th of June 1996 in Belgrade and is one of the oldest and one of the biggest audit companies in Serbia. Jelena Slovic and Zoran Ilic lead a team of 31, among them 21 auditors. Beside acting as operational partner in charge of ECOVIS FinAudit, Jelena is lecturing in education of professionals and with employees as a part of continuing education. ECOVIS SEE and ECOVIS FinAudit are located on the same address in Belgrade.
The Managing Partner of ECOVIS FinAudit Dr Jelena Slovic comments on joining ECOVIS International: “We are glad to join Ecovis International. We believe that our expertise and long experience on the local market joined with Ecovis international experience will be the way to continue to build long-lasting and effective cooperation with our clients. We are committed to provide first-rate services and quality to our clients on an ongoing basis. Thanks to the joined combination of national and international experience and expertise within the Ecovis international network we believe that we will continue to provide excellent service reconciling local and international trends.”
We warmly welcome our new colleagues from ECOVIS FinAudit to the Ecovis family!