Denmark is a country with a strong and stable economy. The country is ranked as one of the easiest places to do business in the world, with a streamlined registration process and low levels of bureaucracy.
Starting a business in Denmark is a straightforward process. The first step is to register the corporate with the Business Authority. This can be done online, and the registration process is simple and efficient. It still necessitates a lot of learning and investigation, though. The first step in starting a company is to understand the process and conditions for registering one in the nation. Luckily, the sections below discuss these processes and requirements.
Types of company structures
Denmark offers the following types of corporate structures, each with its requirements.
Sole proprietary
The most common type is the sole proprietorship, which is easy to set up and manage. To file a sole proprietorship, one must obtain a CVR number from the Corporate Authority and file with the tax authorities. Additionally, the owner is personally liable for any debts incurred by the business.
Limited liability
Another type of corporate structure in Denmark is the limited liability company (LLC). This structure provides limited liability protection for the owners, meaning that their assets are not at risk if the business incurs debts. To form an LLC, one must file articles of association with the Danish Business Authority, obtain a CVR number, and file with the tax authorities.
Partnership
The partnership structure is similar to the sole proprietorship but with multiple owners. Partnerships must also obtain a CVR number and file with the tax authorities. It is important to note that each partner is personally liable for the debts of the partnership.
Process of registration
Company registration in Denmark involves the following five steps.
- Registering a company name
The first step is to choose a corporation name and check its availability. The name must be unique and not already registered.
- Prepare AOA
Once the name is approved, the next step is to prepare the articles of association. This document outlines the firm’s purpose, ownership structure, and management.
- Obtain CVR number
The owner obtains a CVR number from the Danish Commerce and Companies Agency. This number is used for tax and registration purposes.
- Register with corporate authorities
You must file the firm with the authority. This pertains to submitting the articles of association and other required documents.
- Apply for VAT and permits
The final step is to file for VAT and obtain any necessary permits or licenses. This step is dependent on the type of corporate and its activities.
Documents required
To register a trade in Denmark, several documents must be submitted. These documents include a registration form, which can be obtained from the Danish Business Authority website. Additionally, a memorandum of association, articles of association, and a declaration of ownership must be submitted.
All of these documents must be submitted to the Danish Business Authority, which is located in Copenhagen. The address for the authority is Langelinie Allé 17, 2100 Copenhagen. It is important to note that all documents must be submitted in Danish or English.
Capital requirements and other charges
Several fees and capital requirements must be fulfilled when registering a firm in Denmark. First and foremost, a minimum share capital of DKK 50,000 is required for a private limited company (ApS) and DKK 500,000 for a public limited company (A/S). Additionally, there are registration fees that must be paid to the authority, which vary depending on the type of firm being registered.
In addition to the initial fees and capital requirements, it is important to note that there may be ongoing fees associated with maintaining a registered company in Denmark. For example, there are annual fees that must be paid to the Danish Business Authority, which are based on the firm’s revenue. There are also fees associated with filing annual reports and other required documentation.
