Some of us know Denmark as a home to Legoland and birthplace of the famous writer Hans Chrisitan Andersen, but not everyone look at this country like at the central branch for Northern European business.
- state located in Northern Europe with the capital city Copenhagen
- total area of 43,094 square kilometers and population around 5,5 million
- member of the European Union
- official language is Danish
Why should business be incorporated in Denmark?
- First of all, of course, as every businessman, your main motivation would be, saving money, which is reasonable, because some countries offer ridiculous taxation. Nobody really wants to feed the government, when you work the whole year and word „vacation“ only appears in your dreams. Denmark offers low effective tax, so it does cover one of the benefits
- no residency requirements for owners and directors of the company, you can come from any country, register a company in Denmark and be the owner of that company
- Establishment of the company is very fast and inexpensive, you will safe time and time is money, as they say
- for foreign investors, it is appropriate that certain documents are kept and administered in English, no language problems for you and your employees
What can stop you from registering a company in Denmark?
However it is considered to be a good choice for incorporation, Denmark has few disadvantages, like:
- minimum share capital is DKK 500,000 and at least 25% must be paid ( some think it is a problem, others také it as a condition, it’s up to you to decide if it is rather a disadvantage or not )
- company must have at least three members of the Executive Board ( so if you are a solo businessman in a company, what you can do is order 2 nominees or cooperate with 2 other members )
Basicly, you can use a nominee person,that will help you with some major points in your business.
- Every single person, especially businessman has a right for anonymity. That is our opinion! Like in some countries it is a matter of time (few clicks and you know the whole information about the person, who owns the business) But do you really want other people know what are doing, what is the capital of business. For some, it is a matter of principle to hide this information and you have all rights for that!
- In terms of Denmark, you can use 2 nominee members of the Executive Board, so on paper they will be members, but in reality you will have an internal agreement, explaining that members are only nominee and have no rights in the company. Safety for you business is a priority!
- Company management is carried out through the Executive Council, which must have at least one member
- Dividend payment is burdened with relatively high 27% of taxes