Operating Jurisdictions Lists

What are Operating Jurisdictions Lists?

An operating jurisdictions list specifies the details of all countries, states and territories in which your group companies carry out business activities.

An operating jurisdictions list provides information on jurisdictions in which your company and its related entities conduct business, hold assets and/or employ staff. It also specifies, for each jurisdiction:

• Staff members employed
• Assets held
• Premises owned or leased
• Products/services offered
• Activities carried out
• Rules and regulations applicable to your group companies, and the governing authorities
• Tax structure and policies applicable

Why are Operating Jurisdictions Lists important for business today?

An operating jurisdictions list helps your company by providing:

• A quick reference guide for internal employees in relation to the geographic reach of the business and the scale and scope of the operations in each location
• The ability to cross check information provided to external stakeholders such as investors, regulators, customers, suppliers or other partners against this centrally tracked list
• A checklist of jurisdictions against which to ensure compliance is maintained with local rules and regulations
• A starting point for estimating the value of your company’s assets, costs and resources across jurisdictions

Why are Operating Jurisdictions Lists important for an event tomorrow?

A jurisdiction operating list is important for an event tomorrow, as it helps potential investors to understand:

• The geographic footprint of your business
• The relative size of your operation in each jurisdiction
• The exposure you have to particular jurisdictions in terms of assets held
• The materiality of geographically specific due diligence issues
• The regulatory regimes that govern your company’s operations in a location
• The risks and opportunities of your business in different jurisdictions

Pros of Operating Jurisdictions Lists

• Allows potential investors to quickly ascertain the geographic reach of the business as well as the scale of its operations in individual locations
• Helps potential investors to determine the materiality of legal risks identified in a particular jurisdiction
• Establishes corporate transparency by providing a well-defined list of company’s operating locations
• Helps assess the tax liabilities of your company across jurisdictions
• Provides a reference guide for internal employees

Cons of not addressing Operating Jurisdictions Lists

• Limits your company’s ability to track its assets and employees in a jurisdiction
• Increases the time and cost to potential investors during due diligence by forcing them to formulate their own list by collating the relevant material themselves
• Increases the potential for potential investors to misunderstand the true geographic spread and exposure of the business.