What is skattefri virksomhedsomdannelse (tax-free incorporation)?

In short

Skattefri virksomhedsomdannelse is a method for converting a personally owned business into a company (typically an ApS) without triggering tax right away.

In practice

Instead of selling the business to the company and paying tax on the gain now, the company inherits the tax position and the tax is deferred until the shares are one day sold. The conversion must happen by 30 June to take effect from 1 January — and calls for professional advice.

Go deeper: Sole proprietorship or ApS: which should you choose?

Related terms

• Enkeltmandsvirksomhed (sole proprietorship)
• ApS (private limited company)
• Virksomhedsordningen (the business tax scheme)
• See every term in the dictionary

Tired of looking things up? At Numina your own bookkeeper handles bookkeeping, VAT and deadlines — at a fixed price. Read about your bookkeeper at Numina