Change Of Financial Year

Restructuring of financial year

In cases where a company is not affiliated with a group and its owners have the autonomy to make decisions on financial years, certain conditions must be fulfilled when considering restructuring. These conditions have been put in place to support the requirement for continuity in a company’s annual report under the Financial Statements Act. Essentially, financial years should not be altered drastically from one year to the next. For restructuring, the period should not extend beyond 12 months. In an example where a company wishes to move from a calendar year financial year to June 1 – May 31, the restructuring should not result in a period that exceeds 12 months. Instead, restructuring should be conducted in a way that enables the financial year to end earlier, allowing for a new financial year to begin afterward.

The exception to the rule

In certain scenarios, it is possible to extend the restructuring period for up to 18 months if there is valid justification. However, it is crucial to note that the annual report must still provide a justification for the restructuring process, irrespective of the length of time. A suitable justification for the restructuring could be due to changes in group relationships, such as the company being acquired by another entity, and hence becoming a subsidiary. As we mentioned – certain instances, an extension of the restructuring period up to a maximum of 18 months may be considered, subject to the justification of the financial year restructuring based on one of the following reasons:

• Establishing group relationships
• Establishing participation in joint management over another company
• Fusion

Outside these situations, the restructuring period must not exceed 12 months.

Therefore, it is essential to communicate the reason for the alteration in the fiscal year when interfacing with DKkonsult.

Notification of decision to restructure the financial year

In the event that your company plans to reschedule the financial year, we would like to remind you that the relevant resolution must be passed at a general meeting held with the majority of votes of at least ⅔. Additionally, it is crucial to ensure that your company’s articles of association are amended to reflect the new period.

It is necessary to notify the Danish Business Authority of the decision to change the financial year within 2 weeks after the general meeting. Additionally, we would like to highlight that the notification must be received by the Danish Business Authority within 5 months after the end of the financial year that is about to be changed.

If all the owners agree to reschedule the financial year, we recommend that you pursue this process with efficiency by utilising DKkonsult services. We offer a straightforward process whereby you fill out our form, pay the requisite fees and we prepare a decision report and new statutes. Our documentation will be ready for signature with NemID or MitID at your earliest convenience.

Make corporate changes with DKkonsult

Whether your company needs to change its name, set up a board of directors or have new statutes, you can easily and quickly make the change with DKkonsult. We have put it all together in one form so you can freely choose which company changes you want to make – the price is the same no matter how many changes, you choose to implement at once.

Choose freely from the following company changes:

• Approval of annual report ( ordinary general meeting )
• New statutes
• Change of company name and / or nickname ( e )
• Change of company purpose, management, subscription rule, audit or financial year
• Create, abolish or change board

Once you have paid and received your documents, we make sure to register the changes with the Danish Business Authority within approx. 48 hours on weekdays as soon as the decision report is signed.