Formation of holding companies
Major advantages of combining a holding company with an operating company
A holding company is a company (e.g. a private limited company or an entrepreneurial company), which owns stock and shares in another company. This means that you can achieve business and tax advantages by building a business structure that contains both a holding company and an operating company. When you have paid income tax in the operating company, the proceeds can in fact be transferred tax-free to the holding company. In this way you insulate the retention of company assets in the holding company and the capital is secure if the operating company were to run into difficulties or is hit by unforeseen claims.
No requirement for VAT registration
A holding company operates normally with no active operation and is, therefore, not registered for VAT. You own the holding company and the holding company owns your operating company. As the holding company can, for example, be an entrepreneurial company, it can also be formed with capital of only DKK 1.
If you think you might need a holding company, it is very important that you contact me. As a rule, it is advantageous to set up the holding company at the same time as your operating company. If it is incorporated later, it must be incorporated in a particular way, but I will, of course, be happy to help you with that.
Contact me to learn more about the benefits to you of combining a holding company with an operating company.