If you’re considering setting up a holding structure, one of the first things you’ll want to know is how much it costs. The cost of setting up a holding company depends on how much you want to do yourself, what assets are being contributed, and what level of advice you need. At Accountview, we show you the price in black and white so you can make an informed decision.
Fixed Costs Associated with Incorporation
When you set up a holding company, there are some expenses you simply can’t avoid. They are generally the same for everyone, regardless of which advisor you choose.
- Share capital: At least 20,000 kroner. The amount must be paid in, but it remains your money held by the company, and it can be used for the company’s operations or investments.
- Incorporation fee: 670 kroner to the Danish Business Authority for digital registration.
- Bank fee: 0 to 1,500 kroner. Some banks do not charge a fee for opening a business account, while others charge a small setup fee.
If you contribute something other than cash—such as shares in an existing operating company—additional requirements regarding a valuation report will apply.
Pricing for Consulting Services at Accountview
We charge a flat fee for the incorporation process, so you know exactly what it costs. The cash incorporation package typically costs 4,000 to 6,000 kroner and covers the articles of incorporation, bylaws, a list of shareholders, registration with the Danish Business Authority, setup of bookkeeping, and a brief startup consultation.
If you choose a model involving a contribution-in-kind or a tax-free stock swap, the price typically ranges from 10,000 to 18,000 kroner. In addition, you’ll receive a valuation report, an opening balance sheet, an application for a stock swap with the Danish Tax Agency, and advice on the tax implications.
What is the price we should expect on an ongoing basis?
The cost of a holding company also includes the ongoing expenses that you need to be aware of before you take the plunge. We recommend that you budget for:
- Annual report for the holding company: typically 4,000 to 8,000 kroner per year
- Tax returns and tax consultations: usually included in the subscription
- Any auditor’s report, if the company exceeds the audit thresholds
- Bookkeeping subscription, if the company has more than just a few transactions per year
- Bank Fees for Business Accounts and Payment Services
Many holding companies are passive, so day-to-day administration is limited. If a holding company invests actively in real estate or stocks, there is typically a bit more bookkeeping involved.
Make the right decision from the start
The question, “How much does a holding company cost?” is inextricably linked to the amount of profit the operating company generates. As a rule of thumb, the holding company begins to pay for itself when the operating company’s bottom line shows an additional 50,000 to 100,000 kroner each year. At Accountview, we’re happy to provide a detailed calculation comparing scenarios with and without a holding structure, and you’ll be assigned an advisor who will take responsibility for both the operating company and the holding company after incorporation.
Frequently Asked Questions
Can I finance the 20,000 kroner in corporate capital with a bank loan?
The company’s capital must be paid in cash and may not be loaned by the company to the owner at the time of incorporation. You are welcome to borrow the money privately—for example, through a bank—and assume the debt yourself. We’ll prepare a memorandum regarding the capital contribution so that the bank and the tax authorities can verify that the rules have been followed.
How long does it take from the time I pay the incorporation fee until the company is registered?
Once the documents have been signed and the capital has been paid in, we typically file the application the same day. The Danish Business Authority processes incorporations within three to five business days, and you’ll receive your CVR number directly via email. After that, you’ll open a business bank account, and the company will be fully operational.
Can I deduct the expenses for the foundation on my taxes?
Incorporation costs cannot be deducted as operating expenses for the company, but they are capitalized as goodwill or contributed capital and thus affect the company’s balance sheet. This means that you do not receive a direct deduction, but you also do not write off the money as a lost expense.
How much does it cost to dissolve a holding company if we change our minds?
A voluntary dissolution via a payment declaration typically costs 4,000 to 7,000 kroner in consulting fees, plus a small fee to the Danish Business Authority. We handle the tax dialogue as part of the dissolution process to ensure that the funds are correctly distributed as liquidation proceeds. The timeframe is usually three to four weeks.
Would you like to know the price for your specific situation? Let’s have a quick, no-obligation chat about what it would cost you.
