Denmark Company Formation

Denmark is modern European country with a high standard of living. Denmark has one of the highest life satisfaction rankings and is frequently ranked as one of the happiest country in the world in cross-national studies of happiness. Denmark’s liberal approach to life in general is mirrored in its attitude to companies coming in from abroad.  

Denmark is situated in Northern Europe and forms part of Scandinavia, has a modern, prosperous and developed mixed market economy. The population of Denmark is approximately 5.5 million. Denmark’s economy stands out as one of the most free in the Index of Economic Freedom and the Economic Freedom of the World. The economy has high levels of international trade and Denmark is known as a free trade advocate in the European Union.

Denmark plans to reduce the corporate income tax rate from 25% to 22% over a three year period. 

Company Bureau can assist you in the process of setting up a Danish company with minimal hassle and without the need to travel there. We can assist you with a full range of services. 

There are 3 main forms of Company Registration in Denmark:

 

Iværksætterselskab (IVS – Entrepreneur company)

Anpartsselskab (ApS) – Private Limited Company

Aktieselskab (A/S) – Public Limited Company 

 

Iværksætterselskab (IVS – Entrepreneur company)

  • Minimum share capital of a Danish IVS is 1DKK or the equivalent amount in Euro €0.15
  • This share capital has to be increased to 50,000DKK which equates to €7,000 before any dividends can be declared. This increase must be through normal business operations. Once it reaches this share capital it can be converted to an ApS
  • The IVS company form operates under the same rules that apply for the Danish ApS. There is therefore no difference between an IVS and an ApS, apart from the required minimum start-up capital. There are no conditions to set-up an IVS and can easily be used as a holding company, for example
  • Minimum 25% of the IVS’ yearly profit is a statutory reserve 

 

Anpartsselskab (ApS) – Private Limited Company

  • Minimum share capital of a Danish ApS is DKK 50,000 or the equivalent amount in Euro €7,000
  • Minimum 1 director is required.  No restrictions on foreign shareholders and directors
  • Capital is divided into shares with nominal value, which are not freely transferrable
  • An auditor who will do the audit of the accounts
  • audited annual accounts required, using a registered auditor
  • A certified accountant to do the daily book-keeping and accounting

 

Aktieselskab (A/S) – Public Limited Company

  • Minimum share capital of a Danish A/S is 500,000 DKK or the equivalent amount in Euro €67,000 which must be contributed in either cash or assets
  • Three directors required, must be citizens in the EU
  • Company must also employ at least one manager who must be an EU citizen
  • Shares can be offered to the public
  • Audited annual accounts required

 

Company Bureau can assist you in setting up a company in Denmark, as well as a whole range of professional services which include: 

 

  • VAT registration
  • Registered/virtual office services
  • Bank account introduction
  • Accounting/payroll services 
  • Licencing requirements  

 

For more information or to incorporate a Danish company today, please don’t hesitate to contact us at Company Bureau