Business entities in Denmark

Business entities in Denmark

Setup most optimal business structure in Denmark
Healy Consultants will assist our Client engineer the optimum Denmark corporate structure. There are several ways of doing business in Denmark, the most common being the setup of a limited liability company (also known in some countries as a private limited company).

The Denmark limited liability company (Anpartsselskab)

  • A Denmark limited liability company (LLC) is the most common entity used to conduct business within Denmark and is allowed to engage in any commercial or industrial activity, except financial and banking services. A Denmark resident secretary is not required;
  • A limited liability company can be incorporated within one week, with a minimum of one shareholder and one director of any nationality. The minimum paid up share capital is DNK12,500 (approximately €400) and our Client does not need to travel to complete Danish business setup procedures with the Danish Business Authority.

The Denmark stock corporation (Aktieselskab)

The Denmark stock corporation is very similar to a limited liability company and can be registered with one shareholder and one director. The minimum amount of capital to setup such Denmark business entity is however higher: DKK800,000 (approximately €110,000). The company must also submit audited financial statements to the Denmark Inland Revenue Department.

Branch office

The Danish Act on Certain Commercial Undertakings regulates foreign company branches in Denmark and stipulates that they may be 100% foreign owned. A branch office in Denmark can conduct trade within the scope set by the parent company. A Denmark branch office is allowed to invoice Denmark customers, sign local sales contracts and receive income from customers. A Denmark branch company is also required to obtain the necessary licensing for its industry of business.

Representative office

Where a foreign company does not intend to carry on commercial business in Denmark, it may seek to establish a representative office. While a Denmark representative office is 100% foreign-owned and controlled, it is not permitted to make direct sales within Denmark. Such an office must will only engage in activities such as i) promoting the business of the parent company and ii) market research. A local Denmark agent or distributor must be appointed to sell goods and provide services to local companies.

Table of comparison between different Denmark entities

Summary at a glanceLLCBranchRep office
How long to set the company up?1 week2 weeks2 weeks
How long to set the corporate bank account?3 weeks3 weeks3 weeks
Bank signatory must travelYesYesYes
Issued share capital required€40000
Is doing business in Denmark permitted?YesYesNo
Allowed to sign sales contracts with Denmark ClientsYesYesNo
Allowed to invoice Denmark ClientsYesYesNo
Corporate tax payable in Denmark22%22%0%
Corporate bank accountCitibankCitibankCitibank
Can rent office in DenmarkYesYesYes
Tenancy agreement required before incorporation?NoNoYes
Allowed to import raw materials?YesYesNo
Allowed to export goods?YesYesNo
Allowed to export goods?YesYesYes
Do you visit Denmark for company incorporation?NoNoNo
Resident director required?NoNoNo
Resident shareholder required?NoNoNo
Minimum number of directors100
Minimum number of shareholders100
Denmark resident company secretaryNoNoYes
Individual shareholders allowedYesNoNo
Corporate shareholders allowedYesYesYes
Corporate director(s) allowedNoNoNo
Public register of shareholders and directorsYesYesYes
Denmark employment visa fees€3,950€3,950€3,950
How long to get work permit approved3 months3 months3 months
Statutory audit requiredYesYesNo
Annual tax return to be submittedYesYesYes
Access to Denmark double tax treatiesYesYesYes
Estimate of engagement costs€10,655€11,915€10,655
Draft invoicedraft invoice for Denmarkdraft invoice for Denmarkdraft invoice for Denmark BO

Contact us

For additional information on our company setup 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