Company Incorporation In Denmark- Documents, Process, Fees

Incorporation in Denmark serves you with few benefits. Some factors which makes Denmark favorite destination in the world for business owners are as follow:

• Strong Domestic Economy: Denmark is a popular option for foreign enterprises and entrepreneurs because, despite having a population of just under 6 million, it has one of the most robust economies in the world and a big domestic market. Denmark has an extremely low bureaucracy rate in the commercial sector.
• Conducting Business is Simple: One of the aspects that makes Denmark business friendly is the low cost of doing business there. Denmark has the lowest social security contributions and employer costs in Europe. Its overhead costs, like office rent, are likewise far lower than those of other trade nations in Europe. Additionally, with a current corporate tax rate of 22%, it now has one of the lowest rates of any European city.
• Effective Service Sector: In Denmark, the services industry accounts for the majority of GDP and employs about 80% of the workforce. A highly developed and specialized banking and financial sector is included here.
• High Academic Level: Denmark consistently generates highly educated young graduates. These fresh graduates are devoted to their work and well skilled in their fields. Businesses advance thanks to the dedication, enthusiasm, and skills of young people.
• Exceptional Innovation & Technology: Denmark has some of the best contemporary infrastructures in the world. Its infrastructure, business facilities, and transportation network are highly developed and have a steady supply of water and energy. Denmark also boasts more than 40 enticing initiatives to assist the "cleantech" program due to the country's abundance of renewable energy.
• Language: Although Denmark has many official languages, English is the language of business. In Denmark, four out of five people can communicate in English, making it easier for foreigners working there to transact business.
• 100% Foreign Ownership: Denmark is one of the very few countries that allows foreign businessmen to fully own a Danish Holding Company. Additionally, it is not necessary for CEOs or members of the board of directors to be Danes.
• Taxation Policy: Businesses in Denmark benefit from advantageous tax laws. The country has a low corporation tax rate and a low value-added tax rate in contrast to other countries. International business owners benefit from the country's 100% incorporation approval of foreign offshore enterprises. The profit tax is also based on the total turnover of the business.

• Private Limited Company (ApS): Private Limited Company is suitable for small to medium-sized businesses. It requires a minimum share capital, but there is no fixed minimum. Limited Liability for shareholders is required. It can be established by one or more individuals or legal entities. It is common for startups and small businesses.
• Public Limited Company (A/S): Public Limited Company Suitable for larger businesses seeking to raise capital from the public. It requires a minimum share capital (typically higher for an ApS). Limited Liability for shareholders is required. It requires at least one director and one auditor. It is often chosen by well-established companies.
• Partnership (I/S, K/S): I/S (Interessentskab) & K/S (Kommanditselskab) are different types of partnerships. I/S is a general partnership where partners share both profits and liabilities equally. K/S is a limited Partnership where there are both general and limited partners. Limited partners have limited Liability.
• Sole Proprietorship: In Denmark, registering a sole proprietorship has no initial charges and is legally dependent on the owner's personal assets. In contrast to limited liability companies, a sole proprietorship business does not protect the owner's private property against demands made by creditors.

• Annual Report: The annual report for both a limited liability company and a limited company must be completed and authorized by the executive committee no later than five months after the end of the fiscal year.
• Directors & Shareholders: You may need at least one shareholder and one director, although they can both be the same person, depending on the sort of company.
• Number Of Members: There is no need for so many people to form an ApS, a single member can create an ApS.
• Required Capital:
  • A limited liability corporation must be founded in Denmark with a minimum investment of 40,000 DKK.
  • To establish a limited corporation, 400,000 DKK in share capital is needed.
  • To register a sole proprietorship business in Denmark, no capital is needed.

The required fee for company incorporation in Denmark is as follows: