The Danish Bookkeeping Act for Holding and Investment Companies
- 3 minute read
- Finance and Accounting
It doesn’t matter how many or how few transactions you have – it is no longer legal in Denmark to use old bookkeeping systems, excel sheets, CaseWare or the like when doing bookkeeping.
With the new Danish Bookkeeping Act, holding and investment companies (Accounting Class B and up, i.e. public and private limited liability companies) as well as inactive companies, must use an approved digital bookkeeping system (or at least a system that can do exactly the same as the approved ones).
When does The Danish Bookkeeping Act apply to holding and investment companies?
The financial year beginning 1 July 2024 or later must be ready for the new systems.
This might seem like a decent amount of time for implementation – but keep in mind that implementation also means consultancy hours, staff training, policy drafting, workflow altercations, etc. And it all requires resources that holding and investment companies rarely have.
So, if you are a holding company or investment company not currently using a bookkeeping system on the list of approved systems that was made public in the beginning of 2024, you ought to get started today.
Fines and penalties for non-compliance.
With the introduction of the new rules, companies must now inform the authorities about what bookkeeping system they are using. This is done when the annual report is submitted, and this will likely be of interest to both the Danish Business Authorities and the Danish Tax Authorities.
Failure to comply will be punished with fines amounting to at least DKK 10,000-25,000. But the size of the fines depends on the scope of non-compliance, as well as the size of the business.
In the end, it is the management’s responsibility to ensure compliance with the Danish Bookkeeping Act, and that the new system is implemented in time.
To dive further into the new Danish Bookkeeping Act, we have made a comprehensive guide here:
What should you do?
Holding and investment companies with very few transactions will still need to implement an approved digital bookkeeping system if they have a yearly revenue over DKK 300,000.
However, the relative cost of doing so will be much higher for a holding company. And the cost of licenses plus training and migration does not exactly match the needs in these cases.
And it will definitely not be a viable option to develop a new system. This means that many holding companies can benefit greatly from outsourcing tasks related to bookkeeping.
At mighty admins, we can assist you with: 
Bookkeeping, reporting, and reconciliation of your Danish Branch or company.
Preparing an annual wheel of filing and payment deadlines with the local authorities.
Handling your Corporate Administration from A-Z, so you never have to think about important filing and payment deadlines.
mighty admins also offers a registered address (domiciliation) to clients at favorable prices with up to a 25% discount compared to other providers in the market.
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