Denmark is an attractive country for businesses looking to expand to Northern Europe. The country has a strong economy, favorable business environment, and a well-educated and skilled workforce. If you are interested in starting a business in Denmark, there are several steps you need to follow to register your business legally. In this article, we will guide you through the process of registering a business in Denmark.
Table of Contents
Step 1: Choose the type of business entity
The first step in registering a business in Denmark is choosing the right type of business entity. There are several options available, including:
- Sole proprietorship: This is the simplest form of business entity in Denmark, where a single individual owns and runs the business.
- Partnership: A partnership is a business owned by two or more people who share the profits and losses of the business.
- Limited liability company (LLC): An LLC is a separate legal entity from its owners, and the liability of the owners is limited to their investment in the company.
- Public limited company (PLC): A PLC is a type of company that can raise capital by issuing shares to the public.
The most common type of business entity in Denmark is the limited liability company (LLC), as it offers the best balance between liability protection and ease of administration.
Step 2: Choose a name for your business
Once you have decided on the type of business entity you want to register, you need to choose a name for your business. The name should be unique, and it must not already be registered by another company. You can search for available names on the Danish Business Authority’s website.
Step 3: Register your business
To register your business in Denmark, you need to complete a registration form and submit it to the Danish Business Authority. The registration form can be completed online or by filling out a paper form. You will need to provide information about your business, including:
- The name of your business
- The address of your business
- The type of business entity you have chosen
- The names and addresses of the owners or shareholders
- The purpose of your business
- The amount of share capital
- The articles of association
You will also need to provide identification documents for the owners or shareholders, such as passports or national ID cards.
Step 4: Obtain a VAT number
If your business will be selling goods or services in Denmark, you need to obtain a VAT number. This is a unique identification number that allows you to charge and collect value-added tax (VAT) on your sales. You can apply for a VAT number online through the Danish Business Authority’s website.
Step 5: Register with the tax authorities
All businesses in Denmark must register with the tax authorities. You will need to provide information about your business, such as your VAT number, your business type, and your expected turnover.
Step 6: Register with the labor market authorities
If you plan to hire employees, you need to register with the labor market authorities. This registration is mandatory, and you will need to provide information about your employees, such as their names, addresses, and employment contracts.
Step 7: Open a bank account
To operate your business in Denmark, you will need to open a bank account. You will need to provide identification documents, such as your passport or national ID card, and proof of your business registration.
Conclusion:
Registering a business in Denmark can be a complex and time-consuming process. However, by following these steps, you can ensure that your business is registered legally and can operate in compliance with Danish laws and regulations. If you need assistance with the legal part of your business journey in Denmark, Generis Global can help you. Contact us today to learn more about how we can help you with your business in Denmark.