Gavin Tosh1Working together can help businesses reach the next level, but the need to form a legal entity can sometimes be seen as off-putting.

Here, Gavin Tosh of Clerwood Legal Services discusses how forming a consortium is a simple option for companies looking to reap the benefits of collaboration.

Many businesses work together. This can be for a variety of reasons, but lack of formalisation can limit how far this goes.  Should they want to open a bank account for joint funds or enter into contracts, it is likely an identifiable legal entity will need to be created.

For some, this may sound like a costly commitment. However, there is a model which allows for the formation of the necessary legal entity with minimal financial or legal commitment:  the consortium co-operative.

Consortiums offer an ideal solution for businesses looking to collaborate while retaining their own independence. Members can be limited companies, partnerships or individuals, with membership any size from two upwards.

The benefits are numerous:

  • Reduce costs of doing business
  • Share the risks when exploring new markets
  • Jointly tender for contracts
  • Buy, sell or market on behalf of members
  • Share facilities such as back offices or premises
  • Attract funding
  • Employ staff

Clerwood Legal Services has worked in conjunction with CDS for a number of years, delivering training to SMEs on collaborative tendering techniques. Now, along with Intend Business Development, we are serving as specialist advisers, helping businesses through the process of forming consortium co-operatives.