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Denmark is consistently ranked Europe's best place to do business, and it only takes a few hours to register a company in Copenhagen.
You can incorporate a Danish company online with all corporate registrations in place in a few hours. No requirements for local shareholders or local resident management apply.
The most commonly used business entity in Denmark is a limited liability company, as it is very quick and easy to form.
Limited liability company
Two main types of limited liability company prevail:
- A/S (public limited liability company). Minimum share capital: DKK 400,000 (EUR 53,532).
- ApS (private limited liability company). Minimum share capital: DKK 40,000 (EUR 5,353).
The share capital is not regarded as a cost and is not blocked, but may instead be used as part of the operating capital. Share capital above the minimum capital may be subscribed, but later paid in according to specific rules. Besides the minimum share capital requirements, the differences between the A/S and the ApS primarily relate to the composition of management and other formalities.
Three ways to register a company in Denmark
- Online registration: A new company can be incorporated and ready for business within only a few hours by using the online electronic registration system provided by the Danish Business Authority.
- Paper registration: A traditional paper registration of the company will usually take two to three weeks.
- Acquiring a shelf company: An “off the shelf” company is a company which has already been founded and registered but has no previous activities or operations. Such companies can be acquired and up and running from one day to the next.
As registering a company online is fast and very cost-efficient, this is the most commonly used procedure in Denmark.
A Danish company is a great platform for Nordic expansion
Denmark offers a unique tax rule according to which foreign branches of a Danish company are generally not subject to paying tax in Denmark.
As a result, a Danish company is an ideal platform for Nordic and European expansion from which to set up branches in other countries.
Moreover, establishing a company in Denmark is simpler, faster and more cost-efficient than establishing a branch. It only takes a few hours to register a company ready for business whereas it usually takes several weeks, and is more costly, to register a branch.
Service and manufacturing business in Denmark
Manufacturing in Denmark can be carried out in different ways. A foreign company may either build, acquire or lease separate production facilities, or manufacture products via existing producers of similar products in Denmark. Establishing production facilities in Denmark is usually done by establishing a Danish company (A/S or ApS) and having the company lease or acquire the facilities.
Service business in Denmark may be conducted via a distribution centre, a shared services centre or a regional headquarters. Most often, services are carried out via a Danish company (A/S or ApS), but can also be conducted via a branch office or a representative office.