What is a holdingselskab (holding company)?

In short

A holding company is a company whose main purpose is owning shares in other companies. With at least 10% ownership, dividends from the operating company can move up tax-free.

In practice

The structure is used to shelter retained profits from operating risk and to sell the operating company tax-free. The price is a bit of extra admin: its own books and annual report.

Go deeper: Holding company: pros, cons — and when it makes sense

Related terms

• ApS (private limited company)
• Udbytte (dividends)
• See every term in the dictionary

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