Establishing a company in Denmark

What you need to consider when setting up a company in Denmark

Denmark is one of the countries in Europe that allow for a simple company formation process, with a well-developed infrastructure and a business environment that encourages research and development and innovative business ideas.

Opening a company in Denmark is a simple process that involves a few key steps and starts with choosing the right business structure. Because the country offers an attractive business environment, many international companies have set up their local Nordic headquarters in Copenhagen or other Danish cities. Some of the key areas for investment include the technology industry, the life science sector, or the maritime sector. Of course, investors can find business opportunities in other areas for design to food production as well as the renewable energies sector.

TBA offers complete services to local and foreign investors who are interested in opening a company in Denmark. We can help investors from the early stages of company formation and once the company is in need of solutions for dispute resolution or other types of legal services.

Main steps to open a business

Choose a legal structure

This is important as the type of company can match the existing capital and the number of investors as well as be suited for small, medium or large companies. The private limited liability company or ApS is commonly used both by local and foreign investors.

Register the company

This is essential, and it is performed with the Danish Business Authority; the process is a simple one and once it is complete, the company receives a central company register number used in all communications with the public authorities.

Obtain permits

Some types of businesses may be required to obtain additional permits and licenses.

Register with the tax authorities

Once the new company is registered with the business authority, it also needs to be registered with the Danish tax authorities, the Customs and Tax Administration, SKAT; those companies that need to register for VAT purposes perform a separate registration.

Hire employees

This is an important step that needs to be taken into consideration and the need to hire specialized or highly skilled staff will also depend on the chosen business field; Denmark also allows business owners to easily hire foreign employees or transfer the existing employees in the country in case of company relocation.

How easy is it to set up a business in Denmark?

The waiting time between the registration and the beginning of actual commercial activities is very short in Denmark. The registration procedure of a company in Denmark takes only six working days and consists of only four steps. The entrepreneurs have also the possibility to acquire a ready-made company (shelf company) and our Team of Experts can give you further information about this type of company.

What TBA can offer you

TBA can help you with additional information about the existing types of companies as well as the requirements for each one of these.

Foreign companies that enter the market have the option of opening a branch or a subsidiary and our lawyers can also advise investors regarding this particular choice. While the branch may present important advantages in terms of ease of incorporation and the general reporting requirements, the foreign company opening a branch in Denmark will be the one liable for the branch’s actions, debts and liabilities while doing business in Copenhagen or another Dutch city.

We can provide investors with complete details about the registration requirements for taxation purposes as well as the annual reporting and filing requirements with the SKAT. Moreover, our tax lawyers in Denmark can also offer complete details on the double tax treaties concluded between Denmark and other countries.

When opening a business in Denmark, it is important to observe both the Companies Law as well as the Employment Law and other relevant laws. As far as employment is concerned, our Danish lawyers can assist investors in drawing up employment contracts as per the current legislation. We can also provide information about the insurance for employees and the taxes related to hiring staff, the social security contributions.

TBA provides effective and individualized corporate services. We can help you to manage your Danish company’s statutory secretarial needs and assist in securing your company’s compliance with legal and administrative requirements in Denmark.
TBA can act as your single point of contact in Denmark, coordinating the correspondence between the auditors, lawyers, authorities and financial institutions etc.

Advantages

Denmark has become a popular choice for businesspeople seeking about where to set up their business. One of the reasons for this popularity has to do with the many benefits offered to those who want to start a business in Denmark.
Denmark benefits many business owners seeking incorporation in this jurisdiction because Denmark has a very high standard of living. A jurisdiction with a strong and healthy economy typically attracts more offshore investors looking to benefit financially, and Denmark is certainly a region that can bolster this strategy for businesses.

Moreover, Denmark is a very friendly place for foreign investors to contribute, as the government encourages foreign money to be brought into the country by providing various incentives such as grants, loans, and tax reductions for offshore corporations.

Benefits of incorporating in Denmark

Denmark offers several benefits to the business owners who choose to incorporate in Denmark, such as:
An affordable and efficient incorporation process, allowing for business owners to not only incorporate quickly but to save money when completing the process.
A fast registration protocol to speed up the process for the businesspeople choosing to incorporate in Denmark.
Another benefit for the people choosing to incorporate in Denmark that there is not a residency requirement when setting up a corporation in Denmark. This fact means the CEO and board of directors can live anywhere in the world.
Notarized deeds are not necessary for incorporation in Denmark, adding greater simplicity to the process.
The registration language requirements in Denmark do allow for some of the documents to be written in English, making things much easier for United States, United Kingdom, Canadian Australian and New Zealand investors to incorporate.
Company dividends are allowed to be distributed on an interim basis, granting the offshore owner of the corporation more freedom and flexibility.
Denmark’s company law follows EU legislation, making this an extremely and legitimate jurisdiction in which to incorporate.
When compared to other jurisdictions a foreign businessperson might seek out to incorporate, Denmark offers many tax-effective laws that help corporations.
Denmark operates as a centre for other Nordic and European corporate activities. This fact means that a people may use the establishment of a Danish subsidiary to then create a branch in another regional country connected to Denmark.

A corporation formed in Denmark can legally operate as a headquarters or holding company, allowing the business to engage in other Nordic or European business opportunities.

Services

We can provide you with all administrative services such as:
  • Business name registration.
  • Maintenance of statutory registers and other formal documentation.
  • Registered office address/ Domiciliation and keeping of mandatory company files.
  • Opening bank accounts.
  • Bookkeeping.
  • Annual Reports.
  • Payroll administration.
  • Preparation, attending and/or drafting minutes of annual general meetings, board meetings and other meetings.
  • Preparation and execution of resolutions.
  • Preparation and filing forms for any changes in your company.
  • Handling all incoming and outgoing correspondence.
  • General corporate/legal assistance.
  • Ad hoc tasks.

Our company licensing services

— What we do and do not do

Our company is EXCLUSIVELY engaged in assisting worldwide clients, either individuals or corporate entities, to get duly and properly licensed with local Regulators and Financial Authorities to get respective official licenses to legally carry out their cryptocurrency or financial related business activities.

TBA & Associates Tax Business Advisors does not provide or carry out any sort of Cryptocurrency or Financial services!

Disclaimer: While TBA & Associates strives to make the information on this website as timely and accurate as possible, the information itself is for reference purposes only. You should not substitute the information provided in this article for competent legal advice. Feel free to contact TBA Customer Services for advice on your specific cases.

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