Establishing a company in Denmark
Denmark is situated in northern Europe, the southernmost of the Nordic countries, with Germany to the south, Sweden and Norway to the north, and a long coastline of the North Sea and Baltic Sea. Denmark also controls two autonomous constituent countries in the North Atlantic Ocean: the Faroe Islands and the enormous expanses of Greenland. Its capital is Copenhagen, and the official language is Danish, although almost all locals also speak fluent English. The local economy is competitive and not unduly burdened by regulation, something that facilitates company incorporation for international entrepreneurs.
In terms of population size, Denmark is a small country of only 5.7 million citizens. Like other Scandinavian countries, Denmark did not become part of the eurozone, and retains its local currency. The Kingdom of Denmark was first founded in the 10th century by a nation of pirates that wished to control the Baltic Sea. Over the centuries, it has become one of the world’s leading and advanced countries in terms of many international indices.
- Although Holland is usually associated with plat open plains, actually it is Denmark that truly lives up to this reputation, being almost completely flat and boasting its highest “mountain” of only 171 meters.
- The world’s leading toy brand in terms of market value – LEGO – originated in Denmark. Naturally, one of this country’s greatest tourist attractions (outside Copenhagen) is Legoland, made entirely of Lego blocks and including massive and breathtaking Lego models, rides, and activities for children and adults alike.
- “Noma”, the tiny restaurant in Copenhagen, has often been chosen as the place offering the world’s finest cuisine. This two-Michelin star brasserie is known for its culinary innovation and fascinating interpretations of Nordic cooking and use of local products. Make your reservations quickly if you wish to dine there, as bookings are made months in advance.
Denmark has an advanced and modern economy. Despite quite modest size, the Danish economy is strong and has an impressive USD 347 billion in GNP and high per capita income of USD 61,000. Its citizens enjoy a very high standard of living in almost every index, and excellent public services are provided by the state. Denmark is considered a welfare state in terms of civic services, funded by a high taxation rate. Despite this, and perhaps not in keeping with what some may think, the Danish market is open and liberal, and provides great flexibility to employers with minimal regulatory interventions. Local economy is considered a free and competitive market, with Denmark considered by the World Bank as the easiest destination for doing business in Europe.
Demarks current markets are based on advanced industrial sectors, an efficient public sector, food export, machinery, energy production and pharmaceuticals. It imports huge volumes of raw materials, equipment and products, and conducts trade with key partners, such as Germany, the UK, Scandinavian countries, and other EU member states. Its developed financial sector is accessible and stable, providing excellent terms for international entrepreneurs interested in establishing a company there.
Mellius offers its clients a range of business contacts in Denmark, providing the best solutions that are tailor-made to client needs and type of activity.
General
Type of company |
ApS (Private Limited Company) |
Relevant Companies Law |
The Danish Private Companies Act (Consolidation Act) |
Offices |
Law requires companies to provide a local office address |
Language of original incorporation documents |
Danish |
Finance and Taxation
Currency |
DKK |
Corporate tax rate |
22% |
Standard share capital |
80,000 DKK (approximately 10,700 EUR) |
Office Holders
Company Secretary (Secretary) |
|
Obligation to appoint company secretary |
Not required |
Obligation to appoint local secretary |
Not required |
Type of entity that may function as company secretary |
Individual and/or company |
Director |
|
Obligation to appoint company director |
Required |
Obligation to appoint local company director |
Not required |
Minimum number of directors |
1 |
Type of entity that may serve as company director |
Individual |
Shareholders |
|
Obligation to register shareholders |
Required |
Obligation to register local shareholders |
Required |
Minimum number of shareholders |
1 |
Type of entity that may register as shareholder |
Individual and/or company |
Type of shares |
Registered shares |
Accessibility of Information
Company registrar |
Information regarding office holders is accessible to the public |
Annual Assembly and Reporting
Obligation to hold annual assembly |
Not required |
Obligation to prepare financial reports |
Required |
Obligation to submit financial reports |
Required |
Accept
