Business Formations in Denmark
As a qualified Attorney and Registered Accountant company, we can do all kinds of formations in Denmark and elsewhere. We have been in the business since 1983 and are now 25 partners with more than 600 years of joint experience. You can simply jump to the page: Register for FORMATION of a Danish Company, Fund or Union
Services for Business formations and running a business in Denmark
- Tax advice based on Blue Sea Jura that adheres to TAX’s binding responses, control signals and the laws of the country that companies or you belong to
- Accountant Statements
- Annual accounts and VAT accounts for Danish and Offshore companies
- Consolidated financial statements for holding companies and offshore companies
- National and Offshore Tax returns for businesses and individuals
- Association accounts for associations and foundations
- VAT account, tax and administrative payments such as salary and holiday payment
- Advisory and accounts for foreign Danes who own Danish properties
- Preparation of full or partial Business Building projects
- Creating a bank account in Denmark or Offshore
- Creating Business Plans for Banking Approvals
- Creation of operating budget, establishment budget, liquidity budget, and partial accounts
- Bankruptcy Advice by liquidator or trustee intermediary and Financing proposals as well as restructuring as Reconstructor
Contact to independent third party assessors for sale between companies and deposits
- Debt settlement and Debt minimization as well as general advice on Debt and handling letters from tax or eg.
- Independent assessments of projects, property, cars and IP rights
- Establishment of companies with Deportation Deposits (Insertion of values as opposed to paying with cash deposit)
- Advice and support for boards and directors
Who are Advokatselskabet.dk and Advokat & Revisor Samvirket?
We do Legal Advice, Financial statements, formations, tax advisory, salary payments and all kinds of normal activities such as address service and export and business advisory. If you wish to start a business in Denmark, you will need to follow all the Danish rules. Business in Denmark can guide you to which rules to follow free of charge. If you are an individual or a business from an EU/EEA country, you can start a business in Denmark without any restrictions. In some situations, you may be required to start a company in Denmark, e.g. if you or your business is active in Denmark for more than 6 or 12 continuous months, or if you take up a residence in Denmark. Here you can learn more about the most typical rules for you to follow.
As a foreign company established in Denmark, you must pay VAT in Denmark when you sell goods and services. In some cases, your company must also pay Danish taxes on any profit generated by your company.
If your company has employees, it is your responsibility to withhold the Danish tax and labor market contribution from the wages that you pay to your employees for the work they carry out in Denmark.
How to register for VAT?
You have to submit the application for VAT registration in Denmark at the latest 8 days before you start doing business in Denmark. If you do not submit the application in time or not at all, or the information that you have provided is not correct or insufficient, you may be sanctioned with a fine.
How to register your company?
You can simply jump to the page: Register for FORMATION of a Danish Company, Fund or Union
- Along with the registration application, you must send a copy of your passport, if you wish to be registered as a sole proprietor or a copy of the company’s registration certificate in your home country if you already have a registered company within the EU.
- The registration certificate with the File number of the Danish CVR/SE-number will be sent to the noted postal address.
Payment of TAX and VAT registration
When you have registered your company for Danish VAT, you must declare VAT for each VAT period. Information about the VAT period is given in connection with registration. You must declare VAT via the Danish Tax Agency. If you forget to declare your VAT, the Danish Tax Agency will automatically assess the VAT amount you have to pay. You will also be charged a fee and interest rate if any.
List of Business taxes in Denmark
- 22% TAX for affiliates of other companies
- 22% Private owned ApS, A/S, PS (LLC) and Stock owned companies
- around 38 % Income tax if you live in Denmark
- 8% AM Arbejdsmarkedsbidrag (Labor market contribution)
- 25% MOMS which is VAT (Value added tax)
- For unions and Funds, you pay 0% tax and can deduct 25% VAT if you are VAT registered, then you also need to ADD 25% VAT on invoices.
You must pay your VAT when you declare your VAT. Payment is made by international transfer. The Danish Tax Agency will inform you of the account, where you must pay your VAT.
If you have a bank account in Denmark (Nemkonto) you can pay your VAT via online banking or via Nets (PBS). If you want to pay VAT via Nets (PBS), you have to apply for it in the TastSelvErhverv.
TAX for any business activities in Denmark
When you as a foreign company do business in Denmark, you must, in some cases, pay tax in Denmark on any profit generated by your company. This applies if your company establishes:
- A place where the company is managed
- A branch
- An office
- A factory
- A workshop
- building, construction, assembly or installation work, or a supervision company in company in connection with these works over a certain period of time. The time period depends on the individual agreements between Denmark and your country. Normally the time period is between 6 to 12 months. If your business activities in Denmark exceeds this time period, your company will be regarded as established permanently in Denmark.
When do you have to deregister your company?
If you stop doing business in Denmark you have to deregister your company within 8 days. This means that you close your company in terms of VAT. You can always request the same VAT number if you decide to do business in Denmark again. You can also deregister your company for some of your duties, for instance, your duties as an employer, without closing your company.
You can close your company or deregister for some of your company’s you need to contact us on +45 32177777, we will send English declaration where you have to send a Power of Attorney to us to close or deregister your activities as that is not online yet.
Salary and tax deduction of employees in Denmark
When you establish a company in Denmark and you have employees that carry out work in Denmark, you must register as an employer. If you already have a Danish LLC company or Fund, Union as a CVR/SE-number then you need to contact us on +45 321 77777 as this is not in English yet.
When you have registered as an employer in Denmark, you must deduct tax and labor market contribution of 8 % (in Danish called AM-bidrag) from each wage payment. You have to declare and pay the tax and AM-bidrag to the Danish Tax Agency on a monthly basis.
Our consultants can even find employees for your company and also make the administration of your company.
Some professions require that you apply for authorization or do a registration/notification by the competent public authority in Denmark before you start your activities in Denmark.