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Opening a Company in Denmark

Opening a Company in Denmark

Updated on Wednesday 26th July 2017

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How easy is it to set up a business in Denmark?

The waiting time between the registration and the beginning of actual commercial activities is very short in Denmark. The registration procedure of a company in Denmark takes only six working days and consists in only four steps. The entrepreneurs have also the possibility to acquire a ready-made company (shelf company) and our Danish lawyers can give you more details about this type of company.

Find out from the video below how to open a company in Denmark:

How easy is it to hire personnel in Denmark?

Denmark has a very well educated population (a high part of it has an University degree and it’s fluent in foreign languages, 80% being fluent in English, 53% in German, 11% in French and 10% in Swedish.).

The laws in Denmark are especially in the favor of the employer, since there is a high flexibility in hiring and dismissing employees.  There is no obligation to hire previous employees unlike other jurisdictions. The remuneration of the employees is made monthly or annually. The companies are advised to hire a recruitment agency which will find the suitable candidates for it.

What are the main points of interest for foreign investors?

Denmark is in the top ten of the most appealing places to do business from Europe. As a matter of fact, The World Bank has ranked Denmark as the easiest place in Europe to do business. Denmark is also in top ten of the most competitive economies in the world.

It’s very easy to open a business in Denmark, as long as the minimum requirements for minimum share capital are respected and all the necessary documents are deposited on time at the authorities. Actually, the investors are advised to open new companies instead of branches because of the shorter term of waiting for registration. Our teal of lawyers in Denmark has an extensive experience in company formation cases and can assist you during the entire company registration procedure.

As a member of EU, Denmark is granting access to the European market, which consists in more than 100 million consumers. Also being member of the EU is granting tax incentives for the foreign investors coming from one of these countries.

The infrastructure is highly developed, offering fast access to the Northern European markets.

Denmark is considered very cost efficient as there is no social contribution cost for employees even though it offers high salaries. It has the lowest Scandinavian corporate tax (only 25%).

What are the advantages of a holding company in Denmark?

Danish holding companies can benefit from the provisions of the many double tax treaties signed by Denmark all over the years. These treaties are granting tax reliefs on profits, dividends, interest and royalties paid to nonresidents.

As a member of EU, Denmark is also applying the Parent-Subsidiary directive. According to this directive there is no withholding tax on dividends paid to a company from an EU country if the parent company owns 10% of the shares for more than a 1 year. There is also no withholding tax on interests if the recipient is not an individual resident in Denmark for 5 of the preceding 10 years. The royalties are also not taxed for the use of commercial, industrial or scientific equipment or on copyrights. Other advantage of opening a holding company in Denmark is that no capital duties are requested at the formation of a subsidiary, and no stamp taxes or duties apply to the share transactions (such as the issuing, the increase of share capital or the transfer).

Do you need more details about the process of setting up a company in Denmark? Feel free to contact our Danish law firm.

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