The Kingdom of Denmark is a Nordic country characterized by gorgeous architecture, renewable energy, and delicious food. Denmark has a stable economy that’s heavily dependent on foreign investment and the service industry. This gives the Danish government enough incentive to cut down on bureaucracy in favor of a free, modern market.
The country’s unique position between Western and Northern Europe, as well as its endless coastline, is another reason to invest in Denmark. The country has state-of-the-art infrastructure and unique import and export possibilities, making it a viable investment opportunity for foreign business owners.
Denmark has an abundance of natural resources, including gas, oil, iron, and steel. Much like the rest of Scandinavia, it promotes green, renewable energy, and sustainable living. Among the country’s leading sectors are pharmaceuticals, electronics, and information technology.
The last factor to consider is Denmark’s high standard of living and its highly-educated and skilled workforce that has been labeled one of the most flexible in the world.
With CompyCo, you can tap into the profitable economy of Denmark and set up your company there in no time!
Forms Of Companies In Denmark
- ApS “Anpartsselskab”—A Private Limited Liability Company
- A/S “Aktieselskab”—A Public Limited Liability Company
- I/S, K/S “Interessentskab”, “Kommanditselskab”— General Partnership, Limited Partnership
- Branch/Representative office
What is the difference between ApS. and A/S companies in Denmark?
In Denmark, most foreign investors opt for one of the limited company types—ApS and A/S.
CompyCo will help you to determine the right location based on your business and its unique needs. Though some documents can be in English, most of the registration documents have to be in Danish, Swedish, or Norwegian. The required share capital for ApS is 40,000 DKK but it can also include assets of financial value – an auditor statement about this must be documented.
An A/S must have at least 400,000 DNK of share capital and a minimum of 25% of this amount needs to be deposited in the bank account. Payments can be done in cash or another assets value in which case an auditor statement must be documented. This form of company can trade on the stock market. Most big and mid-sized businesses opt for this type of company. A/S has to have a minimum of 3 persons in the Board of Directors and an Executive Board with 1 person, the CEO.
Every company in Denmark must obtain a CVR number, CompyCo will obtain this for the client.
Fundamentals Of A Limited Liability Company
Corporate Tax in Denmark
VAT in Denmark
Starts at 22%
Fundamentals of limited liability companies in Denmark
|Limited liability company||ApS|
|Minimum Share capital|
40 000 DKK
|Registered office required||Yes|
|Physical office required||No|
|Min. number of Shareholders||1|
|Min. number of Directors||2|
|Local directors required||No|
|Bank signatory must travel||Yes|
|Timescale for company formation||2 weeks|
|Timescale for bank account opening||14 days|
|Timescale for obtaining VAT number||1 week|
|Statutory audit requirements||No|
|Shelf companies available||Yes|
How can I set up my company in Denmark?
Registration of your company in Denmark can be done in 3 ways: online, physical paper submission, or by purchasing a shelf company. For registration of ApS, CompyCo’s choice is online registration as this is the cheapest, the fastest (it only takes 2 days), and straightforward process. After we register a Danish company with Danish Business Register, we are waiting for tax registration which can take a week or so. The share capital can be paid up on our lawyers bank account, which is transferred on your business account in full once you open it. Thus, you don’t need to travel to Denmark to open a bank account prior the company registration.
A ready-made company will also be advantageous in case you need an older company to prove your business’s reputation on the market as opposed to newly established companies. However, a ready-made shelf company is a comparatively expensive alternative.
Registering a new company online is a straightforward process and it starts with the name reservation. After we receive your scanned copies of due diligence documentation and our questionnaire completed, we will instruct you on share capital payment and after that’s been received in Denmark, we will have your company documents ready in 2 days.
The last step is the registration of the company with the Tax authorities and for VAT if needed. We will also offer you a local High Street Bank account in which case you will have to travel in Denmark in order to get identified or online bank account that can be opened remotely. In any case, you only have to make a choice, travel or not.
For many foreign investors looking to break into European markets, Denmark offers a great opportunity. Home to countless international businesses, the country has stable political and business conditions, making it the perfect country to tap into.
CompyCo is dedicated to offering cost-effective, custom solutions that are tailor-made to all your business’s needs. We’ve partnered with various businesses to help them set up in Denmark over the years.
Enjoy the unique advantage of leveraging our network of professionals in the banking, incorporation, taxation, and HR sectors. We act as your point of contact and provide you the guidance and insight from them can to make the best decisions for your business. CompyCo is committed to helping you enjoy the maximum benefits at minimal costs. Every step of the process, our full-service solutions ensure you have all the time and freedom to focus on your business’s operations while we handle the logistics.
Bank Account Opening
It’s important to understand the Danish banking system before you set up your bank account. High street Banks may sometimes refuse to open a bank account, that’s why it’s necessary that you increase your approval chances from the very beginning. For a business owner setting up outside your jurisdiction, we have a solution for using online bank in which case we can avoid travel for our clients.
Long-term efficiency and convenience are just some of the reasons why a bank account in the country of your business is essential. All Danish companies are also required to have a NemKonto Account to receive payments from the public sector.
Each bank has its unique requirements. These may be about the type of business activity you’ll engage in or the country you reside in. However, certain general requirements may be the same between different Danish financial institutions. These are:
- Proof of business address for your company
- Your CPR number
- Any identifying documentation, which may include your passport or national identity card
In some cases, you may have the option to open your bank account remotely. In this situation, we’ll consult you in detail about the process. Generally it is not required to have bank account in Denmark for Danish company. Find out more about International banking solutions.
Accounting & Taxation
Here are a few accounting and taxation obligations to take into consideration:
- Annual financial statements need to be submitted every year to the Danish Business authority
- To declare income, all Danish companies must file Tax returns annually with a Danish Tax Authority
- VAT needs to be filed quarterly
- The audit of the company must be done in case 2 of these 3 requirements are meet:
- The balance is a sum of 4 million DKK
- There’s a turnover of 8 million DKK
- 12 full-time employees work in the company for 1 year.
If these aren’t met, an audit is not mandatory. However, it has to be included in the company’s documents by default. So, at a beginning, we will de-register the auditor from the company’s documents
How can you employ staff in Denmark?
If you’re setting up your company outside your jurisdiction, it can be intimidating to start hiring employees. However, hiring the right people is vital to your business’s success. Employment laws and regulations differ between different countries, that’s why it’s essential to work with an expert who specializes in the field.
CompyCo caters to all your growing business’s recruitments. We meet your HR-service needs by offering unique, custom solutions to you. With our vast network of HR experts in Denmark and our team of experienced professionals, we deal with employment agreements, onboarding new hires, recruiting new talent, ensuring business compliance with local regulations, and offering payroll services.
Non-resident employers can enjoy a quick, hassle-free procedure to hire value-adding Danish employees. We’re here to make that process easier for you so you can start your business operations promptly. If you only need to employ one person to work remotely in Denmark, we can help you avoid local company registration as an employer.
With a highly-skilled, well-educated workforce available to you in Denmark, we oversee all HR applications so you can solely focus on your business’s success.
Have any questions? Take a look at our HR services page for more information about our International HR services!