November 13, 2011, 6:41 pm
The Danish company law is known for its freedom of organisation and it is valid only in the version published in the Official Law Gazette. The major types of companies in Denmark are ruled by acts that have been slightly modified throughout time. For instance, the private companies are regulated by the Act 378 of 22 May 1996, consolidated in 7 May 2000. European Directives also apply in Denmark, as Denmark is a member state in the EU. Moreover, the Danish Commerce and Companies Agency under the Danish Ministry of Economic and Business Affairs deals with reviews and changes of the company law in Denmark. This agency is also the institution where all companies are registered, regardless of their type. Last but not least, the corporate law in Denmark allows companies to register online in order to reduce registration time.
TYPES OF COMPANIES
All entrepreneurs who want to start up a business in Denmark must decide upon the type of company they want to establish. The most popular types are the public limited company and the private limited company, but the Danish corporate law also mentions partnerships, limited partnerships, partnerships limited by shares, co-operative limited companies, commercial foundations or European companies.
The Danish limited liability company requires a minimum capital of 80,000 DKK as initial capital, while a stock company or a public limited company may be established with a minimum share capital of 500,000 DKK. Nevertheless, there is also the possibility for one investor to be a sole trader and establish his personally owned company.
As far as the employment law in Denmark is regarded, the regulations are divided into two categories. One refers to salaried employees and the other to collective agreements. Besides, the relationship between the employer and the employee is regulated by agreements between the parties. It is also important to mention that the Danish Act on Salaried Employees contains minimum rights for the employees, including termination notices, payments, compensation for dismissal or absence due to illness.
When it comes to language requirements, registration documents of companies in Denmark can be submitted in English, Swedish or Norwegian, meaning that it is not compulsory to translate them into Danish if they are completed in the above mentioned alternative languages.
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.Tweet
Denmark is one of the best locations in the world for opening a company, being ranked among the easiest countries in Europe for doing business.