Denmark officially named the Kingdom of Denmark, is situated directly above Germany and it occupies the peninsula of Jutland (Jylland), which extends northward from the centre of continental western Europe, and an archipelago of more than 400 islands to the east of the peninsula.
According to surveys performed in 2006 and 2007, Denmark was ranked as “the happiest place in the world,” based on standards of health, welfare, and education. Denmark is consistently ranked Europe’s best place to do business, and it only takes a few hours to register a company. The Scandinavian country offers one of the simplest and quickest start-up procedures in the world.
If you plan to start your own business, you should register your company with the Danish Commerce and Companies Agency, no later than eight days before you start any dutiable activities
Danish company law provides a wide range of legal entities which can do business in Denmark, such
as private and public limited companies (A/S and ApS), branch offices, partnerships (I/S), limited
partnerships (K/S), representative offices, entrepreneur companies (IVS) and the European companies
(SE and SCE). Public and private limited companies are the most commonly selected corporate forms.
The Danish Companies Act (Selskabsloven), which is based on and implements EU regulation
regarding companies, regulates public and private limited companies.
Danish Private Limited Company (Anoartsseskab or ApS)
An ApS requires a minimum share capital, of typically 80000 DKK (the equivalent of around EUR 10.000. )Shares within an ApS are non-transferable and non-negotiable. The share capital is not regarded as a cost and is not blocked, it can be used as part of the operating capital.
An ApS only requires a single shareholder, and that person isn’t required to be a Danish citizen.
The Danish Companies Act (Selskabsloven), which is based on and implements EU regulation
regarding companies, regulates public and private limited companies.
A foreign company or investor doing business in Denmark via a private limited company will not be liable for the obligations of the private limited company.
Private limited companies can be used to carry out all kinds of business activities in Denmark,
despite a few activities that can only be performed by a public limited company (for example banking
activities which require a specific permit).
Once you have registered your company the details are automatically sent to the Danish tax authorities (SKAT), as the company must be VAT registered. In Denmark, there are no reduced VAT rates in place, like in other European countries. where reduced rates apply to essential goods such as foodstuffs. In Denmark, there are only two rates of VAT and that are 25% and 0%.
Denmark is a country with a very favorable investment climate. Top advantages for investors include ease of doing business and a favorable business climate, high education levels and high quality of life and a good position in Europe that facilitates access to surrounding markets.
