A lot of entrepreneurs set up their businesses in Denmark every year. Due to the many advantages of registering a company in Denmark, starting a business can be quite advantageous for the business owner. However, when starting a business, a business person has to consider the cost of starting a business in Denmark.
The cost of starting a business in Denmark as a foreigner depends on numerous elements such as the company registration fees, charges for starting a business bank account, depositing the required amount of capital for running the business, acquiring the business licenses, etc. The business registration cost to start a business in Denmark with the Business Authority is 670 DKK.
This article will briefly discuss the cost of starting a business in Denmark.
Requirements that influence the cost to start a business in Denmark
You should consider the cost to start a business in Denmark if you wish to incorporate a company in the nation. The cost for starting a business in Denmark as a foreigner depends on numerous factors.
For starting a business in Denmark, an entrepreneur has to consider the following expenses:
- Expenses for registering a company– Entrepreneurs must pay DKK 670 to register their business with the Danish Business Authority.
- Charges for starting a bank account for the company- The entrepreneur must deposit the necessary share capital before beginning a firm in Denmark. The corporation must establish a commercial bank account in order to put in the share capital.
- Depositing the required amount of share capital- There is no required capital for incorporating a sole proprietorship firm or branch office. However, in order to establish a Limited liability company (ApS) in Denmark, a required share capital of DKK 40,000 is needed. In order to establish a Public Limited Company (A/S) in Denmark, a minimum share capital of 400,000 DKK is needed.
- Fees for acquiring the business licenses– To conduct commercial operations in Denmark, the business person has to obtain various licenses. Business licenses can be acquired for various sectors such as transportation, construction, health sector, educational sector, etc.
- Any applicable notary costs- The cost of starting a business in Denmark as a foreigner may include additional costs for public notaries.
- Charges for obtaining a work permit in Denmark– The business owner will need to submit an application for a work permit in order to operate a business in Denmark. Consequently, getting a work permit in the country can involve paying extra costs.
- Rent for the registered office address- When an entrepreneur opens a business in Denmark, the entrepreneur will also have to decide on a location for the registered office. The registered office address will serve as a place where all the official notices and emails of the firm are given.
- Registering for Tax– Every business has to register with the tax authorities in order to pay the corporate income tax and the value-added tax.
The business registration cost to start a business in Denmark
In order to register a business in Denmark, the entrepreneur would have to apply for enrollment with the Danish Business Authorities. The business cost for starting a business in Denmark as a foreigner depends on the kind of company you wish to set up.
The business registration cost for starting a business in Denmark as a foreigner with the Business Authority is 670 DKK. In addition to that, VAT charges may be applicable.
Work permit cost to start a business in Denmark
Acquiring a work permit is essential in order to operate a firm in Denmark. At the Danish Agency for Labour Retention and International Recruitment, you must submit an application for both a work permit and authorization to launch a corporation.
Required share capital for starting a Public Limited Company (A/S) in Denmark
The proprietors of a public limited business can be one or more than one. In a public limited company, the proprietors of the firm are accountable only for the money they have invested in the firm. At least a required share capital of DKK 400,000 is required to set up a Public Limited Company (A/S) in Denmark.
Required share capital for starting a Limited liability company (ApS) in Denmark
The required share capital for starting a Limited liability company (ApS) in Denmark is DKK 40,000. A Limited liability company (ApS) in Denmark can be formed with just one member, and there are no residency requirements.
Registered office address cost to start a business in Denmark
When starting a business in Denmark, an entrepreneur must also choose where the registered office will be located. After deciding on the location, the registered office address for the firm can be established.
The registered office address will receive all official notifications and correspondence of the company.
The entrepreneur must also take into account the rent that must be paid while renting a place for the office location. In addition to that, the entrepreneur will have to pay for the lease agreement and additional charges associated with it.
Accounting and taxes for a Danish corporation
Accounting and tax expenses to consider while incorporating a firm are:
- The Danish Business Authority must receive periodic financial statements annually.
- All Danish businesses are required to submit yearly tax returns to the Tax Authority to disclose their income.
- A quarterly VAT filing is required.
- The firm’s audit should be completed.
Conclusion
The cost of starting a business in Denmark as a foreigner is described in the above article. Entrepreneurs must take into account a variety of costs when starting a business, including those related to business registration, tax registration, registered office address, etc.
If you intend to establish a business in Denmark, you can consult our business formation experts at OnDemand International. Our experts will help you with the process.
