Shared Services Model for Group Companies: A Setup Guide

What a shared services model means

In a shared services model, common back-office functions of several group companies are run by one central team instead of each company hiring its own. Typical candidates are accounting, payroll, HR operations, IT support, legal and compliance, procurement and customer support.

For a multi-business group, this avoids duplicate effort, improves consistency and lets each operating company focus on its customers.

Functions that usually work well in shared services

• Finance and accounts: bookkeeping, payables, receivables, bank reconciliation, GST and TDS filings
• HR operations: onboarding, attendance, payroll, statutory compliance
• IT: helpdesk, licences, cloud, security and common software
• Legal and secretarial: contracts, ROC filings, registers and policy templates
• Procurement: vendor onboarding, rate contracts and purchase orders

Strategy, sales and core operations normally stay with the individual business.

Choosing the structure

There are two common options. A department inside the holding company that serves all group entities, or a separate service company that bills each entity. A separate entity gives clearer accounting and can later serve outside clients, but adds compliance work. Choose based on group size, tax advice and how independent the businesses need to be.

Pricing and inter-company agreements

Each entity should pay for services through a written inter-company service agreement. Common methods are cost-plus pricing, allocation by headcount or transactions, or a fixed monthly fee. Document the method clearly, apply GST where required and take advice from your chartered accountant on transfer pricing and tax treatment.

Step-by-step rollout

• Map current processes, people and costs in every entity
• Pick two or three functions to start with — usually accounts and payroll
• Standardise processes, chart of accounts and approval limits
• Set up common tools: accounting software, HRMS, ticketing
• Sign service agreements and define service levels
• Migrate entity by entity and review after each move

Controls and service levels

Shared services must not weaken controls. Keep maker-checker approvals, role-based access and entity-wise books. Track service levels such as payroll accuracy, closing timelines and ticket resolution time, and review them with business heads every month.

How ATTPL Group approaches it

ATTPL HOLDCO brings together services across IT, consultancy, legal, finance, HR technology and more under one group. Businesses can explore these services on the ATTPL HOLDCO services page, and HR operations can be run on an HRMS such as ATTPL HRMS.

Frequently asked questions