Denmark Holding Company

Denmark Holding Company

Updated on Friday 12th May 2023

Rate this article

based on 1 reviews

Denmark Holding Company.jpg

What is a Danish holding company?

A Danish holding company is a regular company which keeps shares in another company (subsidiary) from Denmark or abroad. This way of organization is giving this type of company an advantageous tax regime and decisional powers in the subsidiaries’ actions. Our law firm in Denmark has extensive experience in establishing holding companies and can help foreign clients set up such a company in the country. 
Quick Facts  
Denmark holding company - definition  A type of company that manages and controls the assets and investments of its subsidiaries from Denmark or abroad

Minimum number of shareholders 

 At least 1

Minimum number of directors 

 At least 1

Accounting and Audits

 There are no specific accounting and record-keeping procedures mandated by the government.

However,  holding companies are required to have their accounts audited on an annual basis by their accountants in Denmark


No corporate tax for foreign stocks; 

 Investors who own less than 10% of the share capital are subject to Danish capital gains taxes 

Investors who own between 10% and 50% of the share capital in a Danish holding company are exempt from Danish capital gains taxes 

Investors who own 50% or more of the share capital are  exempt from Danish capital gains taxes; U.S. taxpayers must report all global income to the IRS


Foreign ownership 

 Tax-free (in most cases)    

Fast company formation by Danish law firms      

Low minimum capital share 

No required accounting system


 Does not engage in business activities that require to register for VAT


 A Denmark holding company can be held liable for the debts of its subsidiary company

Company formation

 Documents will be submitted by the law firm in Denmark to the Danish Commerce and Companies Agency, which assigns a unique registration or CVR number to the company

Time frame for the incorporation (approx.)   6 days
Number of double taxation treaties (approx)


Joint Taxation Regime

 If a holding company owns more than 50% of another company in Denmark, it becomes the administrator of a joint taxation scheme between the holding company and the subsidiary company

The joint taxation scheme is mandatory when the two companies are located in Denmark

Optional in other countries

Local director required in Denmark (Yes/No)


Shelf companies

 Investors who want to set up a holding company in Denmark have the option to purchase a shelf company instead of starting a new one from scratch

Dividend tax rate   Tax exemption; no withholding tax

Special taxation regime for holding companies in Denmark

Along with the double tax treaties signed by Denmark and Parent-Subsidiary directive, which grants major minimizations or even exemptions from the withholding tax on dividends, interests and royalties, Denmark has signed tax exchange information agreements which grants the access of financial nature information regarding the companies to the foreign tax authorities. These measures are taken in order to prevent tax frauds.
Also in order to avoid tax frauds, Denmark is following the controlled foreign corporation regime (CFC taxation). This way, the incomes of all its subsidiaries are added to the Danish parent company, but only if a parent company controls more than 50% of the voting rights in the subsidiary and more than 10% of the subsidiary’s assets and 50% of the taxable income consists in financial income.
These measures are usually taken in order to make the holding companies opened in Denmark appealing for the investors. 
The usual Danish corporate tax rate is 25%, but using the provisions of the double tax treaties, this tax can be refund or even exempt. Our Danish lawyers can offer you more information on how the double tax agreements work.
The nature of a holding company’s activities can influence its accounting requirements. Nonetheless, all companies in Denmark are required to prepare annual financial statements and prepare the documents by using the Danish GAAP or the International Financial Reporting Standards. Our Danish accountants can help you with complete solutions for a holding company.

The video below shows the main features of holding companies in Denmark:

What legal entity is suited for opening a holding company in Denmark?

The holding companies created in Denmark can be organized as “Anpartselskab” (private limited company- ApS) or“Aktieselskab” (public company- A/S).
The requirement for establishing these types of businesses in Denmark is that a minimum share capital is ncessary: 125,000 DKK (payable half in the first two months from the formation and half in maximum one year) for a private limited liability company and 500,000 DKK (payable in the first six months) for a public limited liability company. The contribution can be paid in cash or in kind.
Besides the above possibility, the holding companies establised in Denmark can be formed from shelf companies. A shelf company is a company that has fulfilled all the requirements for registration and can be purchased by investors that wishes to avoid the waiting time caused by the registration of a company in Denmark.
The process of registration a holding company in Denmark is very easy and involves only four steps: obtaining an electronically signature (Nem ID), opening a bank account and depositing the minimum share capital, register with the  Danish Business Authority system and registering the employees for the workmen insurance.
It takes around six days to open a private or a public limited liability company in Denmark. Do not hesitate to get in touch with our corporate lawyers in Denmark for any company formation request.