Doing business in Denmark

Types of companies in Denmark

Danish limited company, the most used are:

Branch (“filial”)depending on the branch’s head office abroad. Taxation is equivalent to taxation of the Danish company.

Joint Venture, the main vehicle is:

Setting up a Company in Denmark

Setting up a companycan quickly be implemented on­line: The usual steps are:

Formation of companies with business purposes within the scope ot regulated markets are subject to specific requirements and formalities.

Restrictions to Foreign Investment

There are very limited restrictions to foreign investment.

Exchange Control

There is total freedom of capital movements. Capital, dividends, profits, and any kind of incomes can be withdrawn by foreign investors without restrictions.

Money Laundering

Cash movements over € 100,000 are forbidden within the country. Cash entry over € 10,000 is to be declared at the customs (Not wire-transfers).

Labour law Framework

Regulation: Labour relations are governed by the Employees’ Statute and collective agreements between the companies and the employees’ representatives.

Types of contracts: By-laws, employment agreements, lease agreement, client/customers agreement etc.

Social Security: Registration with the Social Security is compulsory. The social security contribution is paid partly by the company and partily by the employee.

Dismissals:

Minimum wage:There is no mandatory minimum wage in Denmark

Taxation

Corporate tax:

Danish companies and foreing companies with an residency in Denmark are levied with a corporate tax rate of 22%.

Publisher: Virtus Advokater – Danish Law Firm


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