Startups Stack Exchange Archive

Single company or multiple companies for software products?

posted by: Diego on 2015-10-06
tagged: tech-company, legal, software, united-kingdom, accounting
score: 5

For context, we are in the UK and we are build SaaS (Software as a Service) products unrelated to each other. They are aimed at different target markets and industries. Some of them are on initial and concept stages and others will soon start generating revenue.

We will seek professional advice but I thought it would be good to get knowledge from the community.

Would it be best to register a different legal entity for each product we are building? Or is it best to register a single company that owns all products?

Are there any best practices for this or would any recommendations from experience?

Answer 7497

posted by: Robert Möstl on 2015-10-07
score: 7

The default answer is no.

Why? Because multiple companies usually lead to more paperwork and expenses - independently from the country you’re located in.

Though there are reasons for multiple companies. E.g.

if a product is high risk you may want to isolate risk via separate companies
if different founders are involved in your products

More Resources

This issue is discussed on the Freelancers Show (although in an American context)
Rob Walling’s product portfolio (Drip, Hittail etc.) is all managed under his comapny The Numa Group

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