Denmark is a European jurisdiction, a member of the EU. Key benefits for investors include a favorable business climate, a good position in Europe, which facilitates access to neighboring markets. This jurisdiction is characterized by a liberal approach to foreign entrepreneurs. Businessmen, who are interested in registering a company in Denmark, may request personal advice on opening a Danish business, offered by our competent specialists.
Benefits of registering enterprises in Denmark:
- Access to the most profitable EU markets with over 100 million consumers;
- A quick business registration;
- No resident management requirements.
Legal forms for opening a business in Denmark:
To establish a Danish LLC, you need:
- At least 1 shareholder and 1 director (a residency does not matter).
- A min. authorized capital is 80 thousand Danish kroner, it can be divided into shares (not transferable). A liability of participants for obligations of an enterprise depends on a down payment.
- An auditor, a certified accountant.
To set up a JSC in Denmark, you need:
- At least one founder;
- A min. share capital is 500 thousand DKK;
- 3 directors and 1 manager must be residents;
- A capital is divided into shares. A liability of participants is limited by the size of their contribution to a capital;
- A local office;
- No requirements for a venue of a meeting of shareholders;
- A unique name.
To register a Danish IVS, you need:
- A min. capital is 1 DKK. It can be increased up to 50,000 Danish kroner, which equals 7,000 euros. Having reached this limit, a company can be transformed into JSC.
- A minimum of 25% of the IVS annual profit is a required reserve.
- A local office.
- No requirements for a venue of a meeting of shareholders.
To open a business in Denmark
- Before drawing up all constituent documents, you should choose a unique name and draw up the Charter of your organization.
- A peculiarity of registering a company in Denmark is that every business must receive a digital signature, known as a NEM id. After completing this step, it is necessary, that a min. share capital be deposited into a bank account.
- Companies, that will hire staff, must register their employees with a private insurance company.
- Danish companies will need to obtain special permits/licenses in Denmark.
- A corporate tax is 22% for enterprises in all sectors, except oil and gas industries (for these enterprises a taxation is 25%).
- A tax year is usually the same as the calendar year, but companies can choose another 12-month period.
- Taxpayers file tax returns online.
- A VAT is 25%. Some types of services are exempt from this tax (an education, an insurance, financial activities, transport of individuals).
Financial statementsA Danish GAAP International Financial Reporting Standards and International Accounting Standards are applicable principles. A submission of annual reporting and auditing is mandatory.
Request for advice on setting up a company in Denmark from YB Case team.
- A language of legislation is Danish, Norwegian, Swedish and English.
- Denmark has trade restrictions.
- A banking, an insurance, a reinsurance, a fund management, a trust management, a trustee business are not allowed.