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Denmark- Establishing a Business

Establishing a business in Denmark is easy and quick. A company can be setup and ready to do business within a few hours. There are few formalities and everything can be done on-line.

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Key facts about setting up a business in Denmark:

• Quick, informal and cost-efficient establishment procedures
• Online incorporation of new companies ready to do business within a few hours
• No resident requirements for management, including members of the Executive Board (CEO), Board of Directors or Supervisory Board
• Shareholder’s and board meetings can be held electronically
• No notarial deeds
• Flexible language requirements – registration of corporate documents of limited liability companies (A/S, ApS and P/S) in Swedish or Norwegian
• Language is possible as an alternative to Danish, and some documents may be registered in English.

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Overview

Denmark is open to allow investors from all walks of world to pool in their money in Danish businesses and ripe benefits out of their success. One can invest in various industries like Information & Communications Technology (ICT), Life Sciences, Cleantech and Maritime where Denmark holds proven competitive global strengths. Add to those an excellent geographical location with outstanding infrastructure and Denmark is your ideal hub for your European activities.

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Advantages of establishing a company instead of a branch office

It is much simpler, faster and more cost-efficient to establish a company rather than a branch. A new company can be registered and ready to do business within a few hours. The registration process of a branch may take several weeks and be more costly.

Another advantage of establishing a company in Denmark is that according to a unique Danish tax rule a foreign branch of a Danish company is generally not subject to tax in Denmark. Administration costs for handling double tax issues may be avoided by having the Nordic headquarter in Denmark instead of other Nordic countries.

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Manufacturing and service businesses in Denmark

Manufacturing in Denmark may be carried out in various ways. A foreign company may establish separate production facilities, either by building, acquiring or leasing such facilities, or having products manufactured by establishing contacts to existing producers of similar products in Denmark. Establishing production facilities in Denmark is most often done by establishing a Danish company (A/S or ApS) and letting the company acquire or lease such facilities.

Service businesses in Denmark may be conducted through a distribution centre, a regional headquarter, or a shared services centre. Services are most often carried out through a Danish company (A/S or ApS), but can also be conducted via a branch or a representative office.

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SE company – the European company

Denmark has fully implemented the EU rules regarding the European public limited company (SE company) for corporate purposes. The legal framework of the SE company is to a large degree subject to national company law. It is possible to change the nationality and place of residence of the company without liquidation and re-founding.

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A Danish company, A/S or ApS, can be established in three different ways

• On-line registration: A new company can be incorporated and ready to operate within a few hours by using the on-line electronic registration system provided by the Danish Commerce and Companies Agency.
• Paper registration: A traditional paper registration of the company may still be used but registration will usually take two to three weeks.
• Acquiring a shelf company: An “off the shelf” company is an already founded and registered company without any previous operations or activities, and can be acquired from day to day. However, as online registration is fast and cost efficient this is the most commonly used procedure.

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