Company in Denmark

General information

Tax rate

Time of establishment of the company

Minimum capital

Company incorporation in Denmark

Denmark is a trading nation that has managed to bounce back after the economic crisis and seize the opportunity to create an economy geared toward renewable energy and sustainable development. Living standards in Denmark are quite high. The Danish economy is characterized by a policy of liberalization of trade and goods. The country is widely developing its foreign trade. In recent years, Denmark has experienced a cycle of strong growth and now has a healthy economy that allows it to occupy the second position in terms of wealth among European countries.

The population has a much higher quality of life than that of other European countries. Denmark remains an attractive country for investors due to the freedom it offers in terms of investment. Many investment protection agreements were concluded between Denmark and dozens of other countries, allowing a wide transparency in transactions.

Types of companies

There are several types of businesses for foreign investors:

• Limited liability company (Anpartsselskab, ApS)

• Limited company (Aktieselskab, A / S)

• European Company (SE)

• European Economic Interest Grouping (GEIE)

• Joint venture

• Individual operator

The limited liability company (ApS) is the most common corporate status of medium and large businesses. It is usually used by foreign companies to become established in the country.

Tax system

It is important to note that since 1 January 2009, there is no longer any tax treaty between France and Denmark.

Under EU law, the free movement of capital is the rule.

Foreign investors are offered a range of financial incentives in Denmark. In particular, there are subsidies for companies that set up in a special development zone.

Accounting

Companies are required to prepare a balance sheet, an income statement, and a schedule. According to the company structure, the annual account audit and publication will be mandatory.

Tax rate

• Income tax: 25% • Tax on capital gains: 28% up to 45,500 DKK and 43%beyond that • Tax on interest and royalties: 25% • Income of foreign companies:28% • Tax on dividends received by a foreign company: 0% if it holds a 20% stake since a year • Tax on dividends received from a subsidiary: 0% if the parent company owns a 10% stake • VAT: 25%

Minimum capital

125,000 DKK (16,782€)

Shareholders

Minimum of one associate

Foreign shareholders

Yes

Foreign holding

Yes

Legal obligations

Mandatory audit of annual accounts

Deadline

3 weeks from the receipt of all documents

Headquarters

Business address, telephone transfer, fax, and mail. Setting up the brand and product line, and administrative costs. Possibility of having a physical office (prices vary depending on demand)

Accounting

Mandatory annual financial report, schedules, and management reporting mandatory, based on an estimated number of monthly bills and a forecast of annual turnover.

Company registration procedure

Taxes and finances

Local labor law

Other information