Denmark company registration

DOING BUSINESS IN DENMARK

Since 2003, Healy Consultants Group PLC has assisted our Clients to start a company in Denmark. The services we provide include i) Denmark business registration ii) company licensing iii) corporate bank account opening services iv) human resources strategies v) work permit applications and vi) office rental solutions.

SummaryLLCPublic limited companyLLPRepresentative officeBranch office
Also known asAnpartsselskabAktieselskabKommanditselskabRepræsentationskontorFilial
Best use of company?All products and servicesTo secure public fundingProfessional servicesMarketing & researchSpecific projects
How soon can you invoice Clients/sign sales contracts?1 month6 weeks1 month6 weeks7 weeks
How soon can you hire staff?1 month6 weeks1 month6 weeks7 weeks
How soon can you sign a lease agreement?2 weeks3 weeks2 weeks3 weeks1 month
How long to supply corporate bank account numbers?3 weeks3 weeks3 weeks3 weeks3 weeks
How long to supply company registration/tax numbers?2 weeks3 weeks2 weeks3 weeks1 month
Corporate tax rate on annual net profits?22%22%0%0%22%
Limited liability entity?YesYesYesNoNo
Minimum paid up share capital?€6,700€67,300€2NoneNone
Corporate bank account location?CitibankSpar Nord BankBNP ParibasCitibankNordea Bank
VAT payable on sales to local customers?25%25%25%0%25%
Average total business set up engagement costs?€11,655€11,655€11,655€11,665€12,915
Average total engagement period?2 months2 months2 months2 months2 months

See full table

Accounting and tax considerationsLLCPublic limited companyLLPRepresentative officeBranch office
Statutory corporate tax payable?22%22%0%0%22%
Legally tax exempt if properly structured?NoNoYesYesNo
Must file an annual tax return?YesYesYesNoYes
Must file annual financial statements?YesYesYesNoYes
Must appoint an auditor?YesYesYesNoYes
Access to double taxation treaties?YesYesNoNoYes
Withholding tax on payments to foreign shareholders?22%22%22%NoneNone
Company RegistrationLLCPublic limited companyLLPRepresentative officeBranch office
Resident director/partner/manager/legal representative required?NoNoNoYesYes
Minimum number of shareholders/partners?112Parent companyParent company
Maximum shareholding for foreigners?100%100%100%100%100%
Minimum statutory paid up share capital?€6,700€67,300€2NoneNone
Shelf companies available?YesYesYesNoNo
Time to incorporate a new entity?4 weeks5 weeks5 weeks6 weeks7 weeks
Can easily convert to a PLC?YesYesNoNoNo
Public register of shareholders and directors?YesYesYesYesYes
Can have preference shareholders/owners?YesYesYesNoNo
Business ConsiderationsLLCPublic limited companyLLPRepresentative officeBranch office
Good entity for trademark registration?YesYesYesNoYes
Can bid for Government contracts?YesYesYesNoYes
Can secure an import and export license?YesYesYesNoYes

Sponsorship by a local citizen required?No
Our Client needs to travel to Denmark for business set up?No
Temporary physical office solutions available?Yes
You need a local resident as bank signatory?No
Can be wholly foreign owned?Yes
The entity will likely be regulated by?Danish Business Authority
Minimum number of directors/managers?1
Monthly VAT reporting to the Government?Yes
Must sign an office lease agreement during incorporation?No
shareholders & directors documents to be attested\translated?No
Each foreign director needs a personal income tax number?No
Foreign non resident director needs a residence visa?No
Maximum number of staff allowed?No maximum number for any entity
Expatriate to local staff ratio?None
Can secure residence visa for business owner?Yes
Other useful information
What will be included in my customer sales invoice?Click link
This country has signed free trade agreements?Yes
This country is a member of WIPO/TRIPS?Yes
This country is a member of the ICSID?Yes
Average custom duties suffered?1.60%
Government foreign investment approval required?No
Average monthly office rental? (US$ per sq m)€22
Minimum statutory hourly wage?€15
Average monthly Euro salary for local skilled employees?€5,217
Denmark deposit interest rate? (1 year average)3.02%
Overseas remittance currency controls?None
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Excellent
Crowd funding available in this country?Yes
Government grants available?Yes
Government approval required for foreign owners?No
Resident director/partner/manager/ legal representative required?No
Can secure trade finance?Yes
Security deposit to be kept with Government?No
Group HQ tax incentives?No

Press the link headings below to read detailed, relevant, up to date information.

  • Advantages and disadvantages

    Advantages of Denmark company registration

    Denmark business registration advantage

    1. Registering a company in Denmark is easy, because:
      • A limited liability company can be established in Denmark within one week, with a minimum of one shareholder and one director of any nationality. Our Clients do not need to travel to complete the engagement;
      • The minimum capital is €1,600 (DNK50,000), of which 25% must be paid up upon incorporation;

    2. Denmark offers a world-class business environment, with benefits including:
      • Denmark is ranked the least corrupt country in the world, according to the 2014 Corruptions Perception Index released by Transparency International;
      • Denmark’s strategic location makes it an ideal business gateway to Europe, providing easy access to the lucrative European Union market. Germany and the UK are its two largest trade partners;
      • Employers in Denmark benefit from the 12th most flexible labor market in the world, offering high flexibility in hiring and firing practices. The Danish workforce is also amongst the most productive in Europe, with an average output of €53 per hour worked;
      • Denmark boasts an exceptional transport infrastructure. Copenhagen Airport serves 132 destinations and boasts the shortest goods transport time of all European airports. Denmark is also home to more than 100 ports, making Denmark a nodal point for transport in Europe, perfectly suited for import and export;
      • Denmark is ranked as the 1st easiest country in the world for trading across borders, according to the Doing Business study by the World Bank. Denmark companies are able to import and export goods in an average of 5 days, compared to the OECD average of almost 10 days;
      • For all the reasons listed above, Denmark is ranked as having the 13th most competitive economy in the world, according to the 2014/15 World Competitiveness Yearbook.
    3. Denmark boasts several industries which are excellent opportunities for investment including:
      • Denmark is the world leader in clean-tech energy, with the industry comprising 3.1% of the economy. Danish companies control one third of the wind power market and Denmark is the first country to allow the commercial usage of 2nd generation biofuels;
      • Denmark has a rapidly growing IT industry, boosted by the world’s most technology-ready population. Denmark boasts world-class IT infrastructure, with high-speed fibre optic internet connections and 4G cellular coverage widely available;
      • Denmark has the best test market in Europe, with the fastest population in the world for adopting new products.

    Disadvantages of Denmark company registration

    1. Denmark is an expensive location for a company, because:
      • Companies registered in Denmark are subject to a corporate tax rate of 22%, though this is below the EU average;
      • Additionally VAT is levied on most goods at a rate of 25% on products sold in the country or exported to other EU States;
      • For persons employed in Denmark, personal income tax is levied at high rates of up to 59%, with minimal deductions available to reduce the individual’s tax burden.
    2. A Denmark company may not offer an entrepreneur’s desired level of privacy because:
    3. Opening a Denmark corporate bank account can be difficult, as Denmark banks are selective when accepting a new customer;
    4. It is difficult to obtain an entrepreneur visa for a person to live in Denmark after registering a Danish business. The business incorporated must meet Danish regulations and the entrepreneur must provide evidence to prove the necessity of hiring a foreigner for the company’s operations.
  • Best uses for a Denmark company

    1. Denmark is an excellent location for a business headquarters because:
      • Copenhagen is the world’s most livable city, comprising a cosmopolitan population living and working in Denmark, a developed infrastructure for tourism, banking, entertainment, business, high quality office and residential accommodation, reliable power and utilities, first class hotels, hospitals, schools and shops;
      • High quality labor is easy to find in Denmark, with 97% of the country having a high school diploma and 47% of the country having a college degree. Thus, entrepreneurs will be able to spend less time and money on job searches;
      • Employers in Denmark have no social contribution requirements to pay for employees. Denmark’s world leading pension scheme is funded through public means with no necessary contributions from the employer;
      • English is spoken by 80% of the Danish population and Denmark is ranked 2nd in the English Proficiency Index by Education First. Business documents do not need to be translated into Danish and the majority of important government websites are available in English;
      • Denmark is a paradise for high net worth entrepreneurs. With a strategic location for wealthy entrepreneurs, the country is synonymous with luxury and is home to some of the biggest brands in the world.
    2. A Denmark holding company is an good way to book profits sourced from EU countries because:
      • Registering a Denmark company portrays a positive image and provides an excellent corporate vehicle to promote your business to global customers, suppliers, investors, venture capitalists, governments and banks;
      • Capital gains and dividend received from both local and foreign subsidiaries are usually exempt from corporate tax, provided i) the company receiving dividends holds more than 10% of the capital of the subsidiary and ii) the subsidiary is based in the European Union or in a country which has signed a double taxation avoidance DTA with Denmark;
      • Denmark boasts 76 DTAs, minimizing global withholding tax.

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Company registration

  • Time to incorporate: One weeks
  • Cost to set up: €10,655
  • Minimum capital: €400
  • Physical office required: No

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 22%
  • Corporate tax base: Worldwide
  • Shelf companies: No
  • Main company type: APS

Frequently asked questions

Contact us

For additional information on our business registration services in Denmark, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Karen Lee, directly:
client relationship officer - Karen