Denmark

For details on the specific nature of day to day bookkeeping, payroll and accounting services, the nature and timing of VAT and other returns, please click here.

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In Denmark there are multiple types of legal entity structures, such as:

  • Anpartselskab (ApS) Private Limited Company

  • Aktieselskab  (A/S) Public Limited Company)

  • Interessentskab (I/S) General Partnership

 

Private Limited Company / ApS

A private limited company can be set up in Denmark by at least one shareholder regardless of his residency. The minimum share capital for setting up a private limited company in Denmark is 80,000 DKK and this amount is divided into shares. These shares are not negotiable, nor transferable. The shareholders of this company are liable only to the extent of their own contribution.


Public Limited Company / A/S

At least one founder is required for setting up a public limited company with the condition to provide a minimum share capital of 500,000 DKK. Shareholders are not liable for the company’s obligations.

 

General Partnership / I/S

It is necessary for at least two members to agree on setting up a partnership. The founders can be individuals or legal entities, and they bear full liability for the company's obligations. As a matter of fact, this is the main characteristic of a general partnership. It is mandatory for a general partnership in Denmark to be registered with the Danish trade register. There is no minimum capital requirement.

On formation of a company a bank account must be maintained.

After the formation the company must register for Corporation tax, VAT and Payroll taxes

 

Corporation Tax:

This applies to both Public and Private Limited Companies and at a rate of 22%.

The on-account tax scheme calculates payments of Corporation Tax from half of the company’s average tax from the previous three years. Tax payments must be completed on the 20th March and 20th November each year.

 

VAT:

A company is required to register for VAT with the Danish Commerce and Companies Agency if its annual turnover exceeds DKK 50,000. Once registered, businesses must charge customers VAT on the sale of all goods and services and pay the tax on their own purchases at a rate of 25%.

VAT payments and returns must be submitted periodically – deadlines vary depending on the annual turnover of the company.

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