Tycoon: From Rags to Riches

Chapter 181: Chapter 164: Zhao De Inheritance

Inside a quiet private room at Nanlu Mansion.

A round table of just the right size was placed in the center. Gu Heng sat in the host’s seat, with Qin Ying and Xu Ke on either side of him.

As for the four young men and women who had followed Gu Heng’s group to the restaurant, Qin Ying and Xu Ke had arranged for them to be in an adjacent private room. This ensured they were available on call without disturbing the main group’s meal.

"That girl from just now... Mr. Gu, do you know her?"

After asking Gu Heng about any dietary restrictions, Qin Ying skillfully placed their order while posing the question. "Our firm has a long-standing partnership with this restaurant. If she’s an acquaintance of yours, Mr. Gu, I can have a word with the manager later and have them put her table’s bill on our tab."

"I know her."

"We’re just passing acquaintances."

"Putting it on the tab won’t be necessary. Don’t bother with it."

Gu Heng waved his hand dismissively, his tone quite casual.

The fact that Han Yijia could be compared to Jiang Ruan back in school was a testament to her outstanding looks and figure. If Jiang Ruan hadn’t given in that night, he and Han Yijia might have already become intimately acquainted.

But as beautiful as Han Yijia was, she was more or less on the same level as internet celebrities like Bingbing and Yangyang. For someone like Gu Heng, who had "seen the world," she wasn’t worth him lowering himself, let alone occupying his thoughts.

"Understood."

Hearing Gu Heng’s response, Qin Ying didn’t mention the matter again.

"The ambiance here is nice."

"Why don’t we talk while we eat?"

Gu Heng took a hot towel from the waitress and wiped his hands. After the change of scenery, the groggy, muddled feeling in his head began to clear up.

To put it simply, he felt sharp again.

"Mr. Gu, your family equity structure has a total of four layers."

"We’ve just finished explaining the first three layers. This final layer is the project company layer, which sits below the main entity layer."

"By establishing new project companies under the main entities—each with an independent legal structure—you can not only further enhance risk isolation but also create more possibilities for tax planning."

"Furthermore, looking at the long term, if your main entities have financing needs in the future, the project companies can also provide them with greater flexibility."

Since Gu Heng had said so, Xu Ke naturally didn’t object. He picked up where he’d left off and continued explaining the proposal.

"Simply put, it further disperses operational risk."

Qin Ying added in a timely manner, "For instance, take your wholly-owned Zhen Cui Group. If we use it as the main entity in an example, as Zhen Cui Group continues to grow and expand... according to our information, it owns six restaurant brands. You could establish each of these six brands as separate, independent project companies for the chain stores."

"Additionally, the most common components of a restaurant group—such as the central kitchen, ingredient supply channels, branded ready-to-eat meal spin-offs, and so on—can all be set up as separate project companies."

"Each project company is an independent entity. In the future, if one grows to a significant scale, you could choose to bring in strategic investors for that specific project and take the project company public through financing."

Xu Ke’s explanation used a lot of technical jargon, so Qin Ying used Gu Heng’s wholly-owned Zhen Cui Group as a direct example to make it easier for him to understand.

"So, what did President Xu mean by ’more possibilities for tax planning’?"

Gu Heng took a sip of tea and asked Qin Ying.

"Mr. Gu, you should know that tax rates vary greatly across different countries and regions around the world. Even domestically, places like Port City and Ao City have much lower tax rates compared to the mainland."

Qin Ying explained, "In the financial industry, a project company is also known by another name: a Special Purpose Vehicle, or SPV. This is a company established for a specific, narrow objective."

"It can be created for tax avoidance, for financing, or for bankruptcy remoteness. In essence, its entire purpose is to serve the main entity, and it can also act as a shield at critical moments."

"If you think of the main entity as a pomegranate, then the project companies are the seeds clinging to the core. Does that make sense, Mr. Gu?"

As Qin Ying was explaining, the restaurant staff began bringing out a series of beautifully plated dishes.

Large Yellow Croaker with Scallion Oil, Triple-Onion Stir-Fried Lobster, Steamed Leopard Coral Grouper with Lotus Leaf and Ginger, Sanmen Roe Crab in a Taro and Rice Broth, Steamed Pomfret with Pickled Greens and Bamboo Shoots, Wine-Scented Hairtail...

"I understand."

Gu Heng nodded slightly, then asked, "So, can Deloitte China help with the registration and formation of all these companies, from the family office to the firewall companies and the main entities?"

"Of course."

"The family equity structure we’ve designed for you isn’t just theoretical. It comes with highly detailed, actionable steps. You can have your own people follow the steps, or you can have us handle it for you."

Xu Ke replied with a smile, "As for staffing the various companies, while human resources consulting isn’t a primary business for Deloitte China, we have deep partnerships with top executive search firms both domestically and internationally. We can provide a wide range of high-level talent for you to choose from."

"Since you’re the experts, I’ll leave this matter in your hands."

"I’ll be in Zhonghai for the near future. I’d like to get this entire family equity structure completed before I leave."

Leave professional matters to the professionals.

Trust those you employ, and don’t employ those you don’t trust.

As one of the Big Four accounting firms in the world, Deloitte Accounting Law Firm’s reputation was certainly trustworthy.

"Alright."

Qin Ying nodded in response. "In that case, we will begin screening for suitable management personnel. Then, according to your schedule, we will send out interview invitations to them."

"Let’s proceed with that plan."

"Let’s eat first. The food is getting cold."

Gu Heng gestured to them.

"Of course."

Qin Ying and Xu Ke naturally had no objections. The atmosphere was amicable as they ate and chatted.

After the meal, instead of going through the trouble of returning to Deloitte China, Gu Heng simply had the staff clear the leftovers and bring over a pot of tea.

Once Xu Ke had finished explaining the entire family equity structure plan, Gu Heng, following the professional advice of Xu Ke and Qin Ying, finalized the names for his new corporate architecture.

Family Office: Zhao De Inheritance Capital Holdings;

Firewall Company A: Dingdun Capital Group Co., Ltd.;

Firewall Company B: Changze United Holding Co., Ltd.;

Main Entity for Ruyi Airlines equity: Celestial Air Holdings Limited;

Main Entity for Xingchuan International equity: Xingyao Cultural Industry Development Co., Ltd.;

Main Entity for Zhen Cui Group: Name unchanged.

Main Entity for Beichun Junlan Hotel: Name unchanged.

With that, the initial framework of Gu Heng’s family equity structure was complete...

Visit and read more novel to help us update chapter quickly. Thank you so much!