Business entities in Greenland in 2021
Healy Consultants will assist our Client in selecting and setting up the optimum Greenland corporate structure for Greenland company formation. There are several ways of doing business in Greenland and the most common is the limited liability company. Foreign investors can also establish a public limited company, a branch of their foreign company or a representative office.
The Greenland limited liability company (anpartsselskab or ApS)
- A Greenland limited company (LLC) can be set up with only i) 1 shareholder ii) 1 director and iii) a share capital of US$19,000. 100% foreign ownership is allowed in majority of the business sectors. At least 1 director must be residing in either Greenland, or be a citizen of Denmark or any other Nordic country. To assist our Clients complying with these requirements, Healy Consultants will be pleased to offer passive nominee resident shareholder and/or director services;
- The Greenland LLC must also provide the Greenland government with a registered address in Greenland to complete incorporation. After incorporation, it will be required to submit annual audited financial statements and must appoint for that purpose either i) one state authorized public accountant or ii) an auditor.
The Greenland public limited company – PLC (aktieselskab or A/S)
- Incorporation of a Greenland public limited company (PLC) requires a minimum of i) one shareholder ii) three directors and iii) a share capital of at least US$75,000. Foreign ownership is not restricted in majority of the business sectors;
- Residency requirements are however tight, as at least one of the directors must be residing in Greenland, or is required to be a citizen of Denmark or any other Nordic country. If needed, Healy Consultants will be pleased to offer passive nominee resident shareholder and/or director services;
- The Greenland PLC must also provide the Greenland government with a registered address in Greenland to complete incorporation. After incorporation, it will be required to submit annual audited financial statements to the Greenland Tax Authority and must appoint for that purpose either i) a state authorized public accountant or ii) an auditor.
The Greenland branch (filial)
Only one shareholder and one director are required for incorporation of a branch in Greenland. Only a company with a legally registered office in the EU, USA, Canada or the Nordic countries can open a branch in Greenland. The director must be resident in Greenland and Healy Consultants may assist our Clients with complying with that requirement either by i) applying on their behalf for a work visa or ii) providing nominee resident shareholder services. The branch office must file a certified copy of the foreign company’s audited financial statements with the GER within five months of fiscal year-end. The foreign financial statements will be made available to the general public.
The Greenland representative office
The Greenland representative office is established solely for market research or an office to establish contacts and enter the market, and promote business of the parent company. This entity is not allowed to pursue production-related or commercial activities. A resident representative must be appointed and the representative office is not subject to corporate tax in Greenland.
|Also known as:||Private limited company||Public limited company||Branch||Rep. office|
|How long to set the company up?||2 weeks||4 weeks||4 weeks||2 weeks|
|How long to open company bank account?||3 weeks||3 weeks||4 weeks||4 weeks|
|Wholly foreign owned?||Yes||Yes||Yes||Yes|
|Minimum paid - up share capital?||US$19,000||US$75,000||N/A||N/A|
|File annual tax return?||Yes||Yes||Yes||No|
|Tax registration certificate required?||Yes||Yes||Yes||Yes|
|Recommended corporate bank account?||Citibank||Nuna Bank||Danske Bank||Jyske Bank|
|Does our Client need to travel?||No||No||No||No|
|Resident director required?||Yes||Yes||Yes||No|
|Resident shareholder required?||No||No||No||No|
|Minimum directors allowed?||1||3||1||1|
|Tax identification code needed?||Yes||Yes||Yes||Yes|
|Corporate shareholders allowed?||Yes||Yes||Yes||Yes|
|Corporate director(s) allowed?||Yes||Yes||Yes||Yes|
|Statutory audit required?||Yes||Yes||No||No|
|Greenland corporate tax rate?||25%||25%||25%||N/A|
|Annual financial statements required?||Yes||Yes||No||Yes|
|Allowed to issue sales invoices?||Yes||Yes||Yes||No|
|Allowed to sign contracts?||Yes||Yes||Yes||No|
|Allowed to import and export goods?||Yes||Yes||Yes||No|
|Can rent an office space in Greenland?||Yes||Yes||Yes||Yes|
|Can buy Greenland property?||No||No||No||No|
|Total Greenland business setup costs in yr. 1?||US$14,000||US$16,000||US$15,000||US$12,400|
|Subsequent annual costs (incl. accounting and tax fee)?||US$6,900||US$6,900||US$7,900||US$5,600|
|Sample engagement invoice?||View invoice PDF||View invoice PDF||View invoice PDF||View invoice PDF|