1. What is the minimum share capital of a Private Limited Liability Company in Denmark?
Private Limited Liability Companies are the most suited business organization form for small up to medium sized business. The minimum required capital is DKK 80000 or EUR 11.000.
2. What is the minimum share capital for a Public Limited Liability Company in Denmark?
The Public Limited Company is similar to a joint stock company, all the shareholders having limited liability to the amount invested in the company. The minimum capital provided must be DKK 500.000 or EUR 67.000.
3. Are there any special requirements for establishing a Danish Limited Liability Company?
In order to set up a Danish Limited Liability Company only one founder is needed, who can be of any nationality, natural person or legal entity. There is no requirement as to the nationality of the founder, as Danish Law does not impose work permits. The company director does not have to be Danish, nor is there any requirement for certain nationality. In Denmark the Private Limited Company has a simplified management and structure, and it is allowed more contractual freedom as opposed to a Public Limited Company. However the shares of such a company are not negotiable. As a requirement every Danish company has to have a registered office in Denmark. In order to set up Danish Private Limited Liability Company the shareholders are not required to travel to Denmark, as they can carry out all the required procedures through a representative authorized with power of attorney. However it is important the founders chose a bank that doesn't require their physical presence, accepting power of attorney.
4. How can I register for VAT in Denmark?
Usually upon registration of a company in Denmark the Danish Trade Registry informs the Tax Authorities of the incorporation of the new company. Therefore the Danish Tax Authorities require the necessary information from the company. If the company engages in activities subject to VAT taxation it must register for VAT. In order to do so a file must be completed and sent to the tax authorities. The procedure can be completed by a proxy authorized with power of attorney. The usual VAT tax is 25% and certain services are exempt from paying it, such as the services related to education, business and financial activities. These services can be charged with a tax on labor costs.
5. How can I open a bank account in Denmark?
A corporate bank account is an important business utensil for companies. Prior to registration companies need to deposit the minimum capital in a temporary bank account that is unblocked after the company receives the registration certificate. Even if most banks do not require the presence of the shareholder, it is advisable to choose a bank that clearly specifies this. Also the majority of Danish banks offer the possibility of internet banking which means the account can be managed from any country via internet. The usual documents requested at opening a bank account are the articles of association, the list with the company’s directors and their specimen of signature, a financial plan.
6. How can I recruit personnel in Denmark?
Denmark has a qualified workforce enabling employers to choose from the best candidates. As a highly-technological country newly established companies are encouraged to create company accounts on job websites, post announcements and select the best candidates that apply to the jobs. Also recruitment agencies are always a good solution for filtering candidates and offering the best suited employees for a company.
7. What is the average salary in Denmark?
Having one of the strongest economies in Europe the average salary in Denmark is around 25500 DKK for a worker with bachelor degree.
8. What is the overall economic situation in Denmark?
Denmark has one of the highest standards of living in the world, even aiding less developed countries by devoting almost one percent of gross national income. The market economy of the country depends on importing raw materials, and due to its geographical location and natural resources trading is at its highest in this country. Even if at the beginning of 2008, as the global crisis struck, Denmark was one of the less affected states, in the present working its way to overcome the problems suffered. The government encourages foreign investment offering incentives as grants, loans and reduced taxes for foreign investors, especially ones that operate in less developed business sectors. Denmark is in the top ten of the most competitive economies in the world and was ranked by the World Bank as the easiest place to do business in Europe.
BridgeWest offers Company Registration in Denmark as well as related services such as Danish shelf companies, VAT Registration and Virtual Office Services in Denmark.
All the basic information regarding the requested steps for starting a business in this country was put together in a YouTube video: How to Open a Company in Denmark. We hope you will enjoy it and share it with your professional network.