What is a datterselskab (subsidiary)?

In short

A datterselskab is a company controlled by another company — the parent — typically because the parent owns more than half the shares or votes.

In practice

Parent and subsidiaries form a group and are jointly taxed automatically. If the parent owns at least 10% of the subsidiary, dividends between the companies are tax-free — the core of the holding structure.

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

Related terms

• Holdingselskab (holding company)
• Sambeskatning (joint taxation)
• ApS (private limited company)
• See every term in the dictionary

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