Denmark

The speed of establishing a new company is one of the basic criteria for choosing a company seat. Administration is taking more and more time for entrepreneurs. At the same time, a transparent and simple registration process is a prerequisite for a healthy economic environment. Denmark offers you to set up a company within one week, in four administrative step­s.

Advantages of doing business in Denmark

Like every entrepreneur, you are probably primarily interested in how to save money. It is absolutely appropriate to think about this already when choosing a country for business. No entrepreneur wants to subsidize the government, especially when you work hard all year and the word „vacation“ is only in the dictionary. However, Denmark offers a low rate of effective taxation, so one of the benefits is in the world. There are no citizenship restrictions for business owners and directors. You can come from anywhere, register a company in Denmark and become its proud owner.

Setting up a company is very fast and financially undemanding. As they say, time is money. It is advantageous for foreign investors that all important documents for companies in Denmark are drawn up in English. There are no language barriers for you or your employees.

The most common companies in Denmark are A/S and ApS. A/S is the equivalent of a Czech limited liability company and is the only one that can be traded on the stock exchange. The general income tax rate is 22 %, however, if certain conditions are met, this rate can be reduced to 0 %.

With proper financial management, companies whose income comes from:

• transfer of shares of a Danish company to a non-resident of Denmark;
• dividends paid on shares of a Danish company;
• sales and use of real estate outside the territory of Denmark;
• interest on receivables;
• fees for the use of works of art;
• any income of the K/S company under the conditions of the appropriate chosen legal structure;

Disadvantages of doing business in Denmark

Although Denmark is considered a good choice for setting up a company, there are also several disadvantages:

• The minimum share capital for an A/S company is DKK 500,000 and at least 25% must be paid.
• ApS is also similar to our limited liability company, but is more suitable for small to medium-sized businesses. The share capital for this type of company is DKK 80,000 and at least 25% must be paid at the time of the company's for­mation.
• The company must have at least three members of the board of directors, so if you are a sole trader, you will have to cooperate with two other people or at least use the services of two nominees. This is basically a person who will help you with some major points in your business. So in Danish terms, the board can have 2 nominee members – they will be paper members, but in reality you will have an internal agreement that will define that these nominees will not have decision-making rights in the company. The security of your business is a priority!
• The management of a Danish company is implemented through an executive board, which must have at least one member.
• Companies in Denmark are required to register for VAT if their annual turnover exceeds DKK 50,000.
• The payment of dividends is burdened with a relatively high tax of 27 %.

In general, we recommend Denmark to those business people looking for stability, a strong, rich economy and investment opportunities in Northern Europe.

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