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Denmark Company Registration

Updated:2018-11-19 16:24:10    Source:www.tannet-group.comViews:128

Denmark company registration is attractive to investors coming from worldwide. Denmark is a Nordic country, which locates in the south-west of Sweden and south of Norway, and bordered to the south by Germany. Denmark is amongst the world’s best locations for doing business. The World Bank ranks Denmark as one of the easiest place in Europe to do business. The country is also ranked No.1 by Forbes in terms of the ongoing business environment. Below is a brief guide on company formation in Denmark.

Why incorporate a company in Denmark?
1. Get access to the most lucrative markets of the European Union;
2. With "flexicurity" you get the most flexible hiring and firing rules in the world, which reduces the costs of scaling business operations up or down;
3. Register and finish your incorporation in days and not weeks;
4. No resident requirements for the management (including the CEO and the Board of Directors);
5. No notarial deeds;
6. Compared to the other Nordic countries, it is tax efficient to establish your business in Denmark;
7. Danish company law is modern and in conformity with the current EU legislation.

Types of Business Structure
There are advantages and disadvantages to all of them, and there is no one correct answer, it’s all dependent on your specific business circumstances and needs. A brief overview of the main structures is below:

1. Establishment (a branch of your overseas business);
2. Limited Company;
3. Limited Liability Partnership.

How to register a company in Denmark?
As a foreign company in Denmark, you will need to register with or notify to the Danish public authorities. The requirements to register will depend on whether you wish to establish a permanent company or provide services in Denmark on a temporary basis. In many cases, you will need a specific license, permit or authorization in order to carry out work in Denmark.

There are three ways to register a company in Denmark:
1. Online registration
A new company can be incorporated and ready for business within only a few hours by using the online electronic registration system provided by the Danish Business Authority. No requirements for local shareholders or local resident management apply.

2. Paper registration
A traditional paper registration of the company will usually take a couple of weeks.

3. Acquiring a shelf company
An shelf company is a company which has already been founded and registered but has no previous activities or operations. Such companies can be acquired and up and running from one day to the next.

Corporation Tax
Taxable income including capital gains is subject to a flat corporate tax rate of 22%. The tax rate is identical for limited companies and branches. Generally, a company resident in Denmark is subject to corporate tax on its income and gains from Danish territory. A company is resident in Denmark for tax purposes if it is incorporated in Denmark or has its statutory seat in Denmark.

Payroll and Bookkeeping
Danish employers are obligated to withhold provisional tax from salary paid. Therefore, a newly established foreign enterprise has to consider whether it prefers to run its own payroll or outsource the payroll to a third-party. Furthermore, hard-copy accounting records must be stored in Denmark. However, electronically stored accounting records can be stored abroad, if it’s kept in accordance with the Danish Bookkeeping Act, and the company at any time can access the records in Denmark. A branch office must keep accounting records separately from the parent company.

It is easy to set up a business in Denmark. Low taxes for corporations and expatriates make Denmark an attractive location for foreign companies to set up a business. Tannet can help establish your business presence in Denmark, we can take care of the whole registration process.

Contact Us
If you have further inquiries, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website, or calling Shenzhen hotline at 86-755-82143422 or Hong Kong hotline at 852-27826888, or emailing to You are also welcome to visit our office situated in16/F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu, Shenzhen, China.

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