Process of registering a Danish company

According to the Danish Private and Public Limited Companies Act, there are 3 types of limited companies (Kapitalselskab), public limited companies, private limited companies (Anpartsselskab or ApS) and limited partnerships. They are all independent legal entities that are not related to each other.

A limited liability company is owned by shareholders, and the general meeting of shareholders is the ultimate authority in the company. However, shareholders mainly control the company through authorization and supervision of the board of directors and general manager.

Generally speaking, only the company is liable to creditors for the company's debts, and once the share contribution has been paid, the shareholders have no commitment to further contribute to the company.

Registering a Danish company

This is important and is carried out by the Danish Business Administration. The process is simple and once completed, the company receives a central company registration number that is used for all communications with public authorities.

To register a company in Denmark, the key documents are the Memorandum of Association and Articles of Association, which include important details such as the company name, registered office, business purpose, members and director positions.

After the documents are drafted, the next step is to open a Danish bank account. This is the most important step, as all types of entities are required to invest a minimum capital requirement of DKK 40,000 before incorporating a company. In addition, once the documents have been drafted and the funds are deposited in a bank account, the next step is to register with the Danish Commercial Register.

It generally takes one week from filing the registration to incorporating the company. Once the company is established, the ApS will receive a CVR (Central Business Register) number, which is a registration number required for all companies in Denmark to be identified.

Registering with the Tax Authority After registering with the Commercial Authority, the new company will also need to register with the Danish Tax Authority, Customs and Tax Administration SKAT to declare its income.

For many entrepreneurial investors, local tax rules and reporting regulations are very important when choosing to set up a company in Denmark. The corporate income tax rate in Denmark is 22%, and the reason for the tax is the company's residence. Investors should note that companies engaged in the oil and gas industry are subject to higher corporate income tax rates of up to 25%.

Entrepreneurs opening a company in Denmark need to comply with tax reporting and submission regulations, which include electronically submitting tax returns within six months after the end of the financial year and prepaying taxes as needed.

Obtaining Permits and Licenses

Generally, no permit is required to start a business in Denmark. However, certain professions and activities require you to apply for permits and licenses in order to obtain admission or authorization.

Hiring Employees

If you want to hire local employees, you will need to register as an employer, which includes paying social security workers, compensation, etc. for recently hired employees. This can take about fourteen days to complete, so to avoid delays in hiring and paying employees, it is recommended to register as an employer as soon as the company is established. Denmark also makes it easy for business owners to hire foreign employees or transfer existing employees to the country when the company relocates.

Opening a Branch Office in Denmark

Opening a company branch in Denmark is a simple process if a few requirements are met, such as the legal form of the parent company and the location of the foreign company, which must be in the EU, EEA, and if it is a non-member country, it has to provide evidence that the company is free to open branches there. At least one manager must be a resident of Denmark or an EU or EEA country.

Investors looking to register a company in Denmark will also benefit from the fact that the country ranks among the top in Europe for ease and simplicity of doing business.

Denmark's well-trained workforce and excellent quality of life are more reasons to set up a company in Denmark.