Thorough and well-informed consideration is required for business structures, business transactions, compliance and contracts. This is due to the volatility of the mining and resources sectors, which may be affected by numerous factors both locally and globally: tax, employment law, environmental law, economic conditions, commodity prices, demand, political considerations and changes to technology.
At Hillhouse Legal Partners we are well‑versed in developing appropriate legal business structures and guiding business owners through options that include consideration of operational requirements and flagging potential taxation impacts. The structure of a business cannot remove volatility but a good structure may be able to minimise some risks and allocate others appropriately between stakeholders.
Amongst the important matters for consideration when deciding on a business structure are:
- Clear & transparent agreement between partners
- Clearly Defining and personal financial liability of involved individuals
- Risk exposures
- Establishment costs
- Access and distribution of profits
- Taxation implications.
The most common business structures are:
- Sole Trader
- Joint Ventures
It is also common for a combination of these vehicles to be used in developing the most appropriate business structure.
Working in collaboration with your accounting professional and financial adviser, our solicitors provide legal advice and discussion that outlines both the advantages and disadvantages of various business structures and their appropriateness in terms of varying complexities, especially those that can be specific to business in mining and resources.