By Caitlyn Buchanan, 24.03.2020
It is increasingly common for international investors to open a company abroad. Offshore companies offer several benefits such as access to new markets and reduced taxes or operating fees. Entrepreneurs within Europe and those looking to access the European single market often want to know more about doing business in Denmark.
The Kingdom of Denmark (including Greenland and the Faroe Islands) is a full EU member state. There are few restrictions to non-residents looking to open a company in Denmark because of the friendly policies toward foreign-owned businesses.
If you want to know how to open a company in Denmark and all of the benefits, then you’ve landed on the right page. This article explains why Denmark is one of the hottest destinations among international investors:
Why is Denmark so Popular Among International Investors?
With a pro-business environment, Denmark is one of the best countries in the world to set up a company. Denmark companies enjoy great perks such as personal freedom, low corruption, reduced tax burden, trade freedom and innovation.
Denmark topped the World Bank’s Ease of Doing Business’ report, earning a reputation as the easiest place in Europe to do business in 2020. Forbes magazine has recognised Denmark one of the best countries in the world for doing business for the second year in a row.
Benefits of Doing business in Denmark
Here are some of the main reasons why so many people are doing business in Denmark:
· 100% Foreign Ownership
Denmark is one of the few countries that gives foreigners the right to fully own a Danish Holding Company. Additionally, there is no requirement for managers, CEOs or individuals on the board of directors to be Danish residents.
· Low Taxes
You will not have to pay taxes when you solely own foreign shares. Moreover, there are no dividends taxes, interest tax, or capital gains tax for foreigners. However, you may have to report your earnings in your home country based on the applicable laws.
P.S: Taxes may be applicable in some cases. Still, the corporate tax in the country is only 22%, which is lower than the tax rate in most European nations.
· Quick and Easy Formation
It is very easy to register a business in Denmark when you use a licenced formation agent such as Euro Company Formations. We can get your business up and running in a day and you’ll be ready to start a new journey. Learn more about the process here Register a Company in Denmark
· Little to No Restrictions
There are little to no restrictions regarding the type of business that can operate in the country making Denmark an ideal location for all kinds of businesses from startups to multinational firms. The country supports research and development with a focus fields such as Life Science and Cleantech.
The country plans to be fully independent of fossil fuel within the next 30 years. Another major industry in food innovation which includes the development of healthy and sustainable food products or services. Demark places an emphasis on reducing waste and sustainability energy sources so it is a great location for businesses that work toward a safe and green environment.
· Easy Management
Managing a foreign-owned company in Demark is easy thanks to low minimum share capital requirements. Plus, the business only requires a single shareholder who may decide to be the sole director.
How to Open a Company in Denmark
The best ways of doing business in Denmark effectively is to open a company in the country. Here’s how to do it:
- Choose your type: Branch, representative office, or LLC
- Get registered with the Danish Business Authority
- Sign up for tax and VAT
The process sounds easy, but it can be complicated to deal with the authorities, especially if you’re not physically located in Denmark.
Fortunately, help is here. We can help start your Danish company. Visit our service page for more information about how to Register a Company in Denmark or get in touch with us today on +353 (0) 16461627 and talk with an expert.
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