It is easy and quick to start a business in Denmark.
All you need to do, is register the business, which is done online at the Danish Business Authority. The registration will often be processed and approved in a matter of a few hours. Furthermore, the business needs to be registered for taxes, VAT and wages. Local authorities can help with the registration.
Everything is done electronically and via e-mail, therefore it is not necessary to be present and sign papers.
A public limited company or limited liability company
A public limited company/PLC (in Danish A/S) or a limited liability company/LLC (in Danish ApS) are the most common forms of businesses in Denmark.
The difference between the two types is primarily the demands for start-up capital and form of management:
- A PLC has a start-up capital of EUR 67,100 (500,000 DKK) while a LLC has a start-up capital of EUR 6,710 (50,000 DKK). The capital is not tied up in either a PLC or a LLC, but can be used for daily management, development and investments.
- A PLC is required to have a management of at least one member and a board of directors consisting of at least three members. In a LLC it is less rigid, and you can choose to have a management with no board of directors.
Neither management nor shareholders have to be resident in Denmark and general meetings and board meetings can be held as online meetings without physical attendance.
No double taxes
There are great advantages to establishing a Danish business rather than a branch. Normally, a company with a foreign branch has to pay taxes both in the country where the branch is located and in the country where the mother company resides. However, Danish tax regulations implies that a business registered in Denmark does not have to pay taxes off of earnings in foreign branches, thus avoiding double taxes. Therefore, it is ideal to place headquarters in Denmark and expand the business with branches in other countries.
Vordingborg Municipality – an obvious choice
Vordingborg Municipality is an obvious choice as a baseline for a Danish registered business:
- A central location with easy access to great markets in Scandinavia and Europe
- A well extended infrastructure and attractive industrial sites
- Low costs and free business service
You can read more about Vordingborg Municipality and are welcome to contact us for more information.