Denmark Company Formation

Introduction to setting up a Company in Denmark

Company formation in Denmark give advantages to investors for ease of doing business as innovation and entrepreneurship are highly encouraged.Denmark is ‘probably’ one of the most progressive economies in the EU, and is very welcoming to foreign direct investment. Denmark is self-sufficient in energy – producing oil, natural gas, wind and bio-energy. Opening a company in Denmark is straightforward; thanks to a streamlined regulatory regime and more than 2,500 foreign companies already operate in the capital, Copenhagen. Denmark has double-taxation treaties with more than 80 countries.

What is the most common type of company in Denmark?

There are two main kinds of business entity in Denmark:

public limited company – Aktieselskab (A/S)
private limited company – Anpartsselskab (ApS)

What are the general corporate tax rates?

For 2018 the tax rate is 22%.Different exemptions and special rules may apply

How much share capital is required to establish an A/S?

The minimum share capital for an A/S is DKK 500,000 or the equivalent amount in EUR (approx. €67,000).

What other requirements are there for an A/S?

There must be at least one director upon incorporation, with no residency requirement
At least three members of the Board of directors upon incorporation
No physical presence of director or shareholders
Requirement of a CVR( company registration number).It can be provided by Danish Business Authority upon company registration.

How much share capital is required to establish an ApS?

The minimum share capital for an ApS is DKK 50,000 or the equivalent amount in EUR (approx. €7,000).

What other requirements are there for an ApS?

At least one director and one shareholder, with no residency requirement
No physical presence of director or shareholder, can be initiated by Power of Attorney
CVR (Company registration number) will be provided by Danish Business Authority upon company registration.

What other types of company are there?

General Partnership (I/S)-there is no formal requirements for founding an I/S and is governed by its partnership agreement.
Entrepreneurial Company (IVS) is governed by its articles of association or deed of incorporation
Limited Partnership (P/S)-has legal personality

How can I get more information?

Our experts in Eurocompanyformations will be pleased to discuss matters in greater detail, and help you register a company in Denmark in the quickest possible timeframe.