How to set up a business in Denmark
Registering a formal company in Denmark is easy and can be done fast, making you ready for business within hours.
The first step is to choose the type of company you wish to establish.
A) Limited liability company
The vast majority of companies in Denmark are companies with limited liability – a public limited company (‘A/S’) or a private limited company (‘ApS’).
To establish a company in Denmark the following documents must be drafted:
- Memorandum of Association
- Articles of Association
All documents can be drafted in English, and no signatures require a notarial certificate.
Furthermore, the share capital must be paid to the company’s bank account or to the client account of the company’s attorney.
Once the relevant founding documents are drafted and signed, and the share capital paid, a Danish company can be registered online with the Danish Business Authority. The company will then receive its unique Company Register Number (CVR) within minutes. The fee for registration is less than € 100, excluding legal fees.
Once the relevant founding documents are drafted and signed, and the share capital paid, a Danish company can be registered online with the Danish Business Authority. The company will then receive its unique Company Register Number (CVR) within minutes. The fee for registration is less than € 100, excluding legal fees.
B) Branch or representative office
Certain types of foreign companies are allowed to operate in Denmark through a branch office. A branch office is not a separate legal entity but represents the foreign company in Denmark. A foreign branch must be registered with the Danish Business Authority and registration can be done within a couple of weeks. A branch is subject to Danish corporate taxation.
A foreign company’s activities in Denmark may also be carried out through a representative office provided the activities are of limited nature, e.g. receiving orders (but not invoicing), administrative work or performance of a specific business activity for a limited period of time (e.g. a construction contract). A foreign representative office need not be registered with the Danish Business Authority. A representative office is generally not subject to Danish corporate taxation.
Register your company for VAT and tax
Once your company is registered with the Danish Business Authority, you must register the company for VAT and tax.
When you register a company in Denmark it is subject to Danish tax legislation and the tax payment will depend on the type of company you have established.
fact What is SKAT?
‘SKAT’ is the name of the Danish Customs and Tax Administration. SKAT manages and enforces tax laws in Denmark.To get acquainted with the Danish tax system, please refer to SKAT’s guide Tax in Denmark. This guide introduces the Danish tax system to newcomers and non-Danish speakers who are not yet familiar with the system.
On SKAT’s website, you can also read more about VAT and tax for new businesses and access general information on working in Denmark.
fact Corporate tax in Denmark?
The corporate tax rate in Denmark is 22%, which is below the OECD average. When establishing a legal entity in Denmark, it is relevant to be aware of the various tax structures that apply to the different legal entities. Finding the right match between company structure, business needs and applicable taxation will provide the best foundation for starting your business in Denmark.Danica Accounting Interview: Starting a company in Denmark
Contact How can we help your company?
If you want to know more about setting up a business in Denmark, please do not hesitate to reach out to our dedicated advisors:
Loading...