Opening a company in Denmark
Denmark’s liberal lifestyle is reflected in its attitude toward foreign companies. The business climate is favorable, despite high labor costs. Starting a company in Denmark is very simple, thanks to a simplified regulatory regime and the over 2,500 foreign companies already operating in the capital, Copenhagen. Denmark has double taxation treaties with over 80 countries. If you are thinking of setting up a company in Denmark, contact us for further information: we will explain how we can help your business.
What are the main types of companies in Denmark?
There are two main corporate forms in Denmark:
- Joint stock company
- aktieselskab (A / S)
- Limited liability company – anpartsselskab (APS)
How much capital is needed to set up an A/S?
The minimum share capital for an A/S is €67,000.
What other requirements are necessary to set up an A/S?
- Starting a Danish company requires three directors who must be EU citizens.
- The company must also hire at least one manager who must be an EU citizen.
- Audit of accounts is required
- A local office is recommended, click here for more details
How much capital is needed to set up an ApS?
The minimum share capital for an A/S is €10,000.
What other requirements are necessary to set up an A/S?
- An annual audit of the accounts, performed by an auditor, is required.
- Neither directors nor managers must be domiciled in Denmark
- A local office is recommended, click here for more details
What other types of companies exist in Denmark?
- European Public Limited Company (SE) – minimum share capital of €120,000 – subject to national company law, but with the possibility of changing the nationality of the company without liquidation and re-formation
- European Economic Interest Grouping (EEIG) – a transnational partnership made up of partners from other European countries – no capital required, no requirement for separate financial accounts, partners taxed individually
- Joint venture , often formed in corporate form by an A/S or an ApS
- Sole proprietorship , no capital requirement – obligation to submit financial reports to the tax authorities – these reports do not need to be audited.
Why invest in Denmark?
Is it easy to hire staff in Denmark?
The Danish workforce is highly skilled and educated. Unemployment currently stands at around 6%. Salaries are high by EU standards, but are in line with those in other parts of the Nordic region. Selection can be conducted in conjunction with government employment agencies or through the services of various commercial employment agencies. If you are considering setting up a company in Denmark, we can help you with your recruitment; click here for more information.
What is the applicable regulatory and legislative framework?
Denmark has a liberal business environment, and this is reflected in the regulatory framework. There are generally no restrictions on investments, and capital and profits can be freely repatriated. The corporate tax rate is 28%, much lower than personal taxation—although expats can benefit from a reduced personal tax rate of 25%. For more information on tax planning for companies wishing to register in Denmark, please contact us.
Opening a bank account in Denmark
And what banking services are available?
Banking services are available that offer a full range of commercial banking services , including those related to acquisitions and capital raising. Foreign investors wishing to establish a company in Denmark are treated equally with domestic investors regarding financing. Find out how we can help you open a bank account in Denmark .
Are there funding and incentives for those investing in Denmark from abroad?
There are limited financial incentives for business start-ups in those regions of Denmark designated by the EU as special development zones. In such circumstances, incentives are also available to small and medium-sized enterprises for research and development, exports, and the development of sustainable skills and technologies.
How can I get more information about setting up a company in Denmark?
For further information, please contact us and we will be happy to discuss with you the possibilities of opening a company in Denmark .