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Vedtægter – example and explanation in English

Vedtægter is one of the documents we need to fill in before we register our company in Denmark: IVS, ApS or A/S. Here you can find some explanation in English, good tips, link to the original document and attached example of this document if from some reason Virk doesn’t provide it anymore.

For the original file Vedtægter, it will be easier for you to edit the original one in .doc while reading advices here.

 

Vedtægter

 

Bemærk: I teksten bruges ordet ”kapitalejer” som benævnelse for en anpartshaver eller aktionær og ordet ”kapitalandel” som benævnelse for en anpart eller aktie.

1.0    Selskabets navn og formål

1.1    Selskabets navn er [Insert name of your company] [Insert ”IVS”, ”ApS” or ”A/S”].

1.2    Selskabets formål er at drive virksomhed med [Description: what will do your company] og hermed forbundet virksomhed.

Comment: For example: “handel med (…)” [trade with (…)]

2.0    Selskabskapital, kapitalandele og ejerbog

2.1    Selskabskapitalen er på nominelt [Insert amount] kr.

Comment: It’s your starting capital, for more details read Stiftelsesdokument

2.2    Selskabskapitalen er opdelt i kapitalandele á nominelt [Insert amount] kr.

Comment: The capital is divided into shares of X DKK. For more details read Stiftelsesdokument

2.3    Hver kapitalandel giver [Insert value] stemmer. Ingen kapitalandele har særlige rettigheder.

Comment: Each share gives x votes. No shares have special rights. I made 1, it’s the easiest thing to do.

2.4    Selskabets ejerbog skal være tilgængelig elektronisk for selskabets kapitalejere.

3.0    Overgang af kapitalandele

3.1    Overgang af kapitalandele kan kun ske med samtykke af selskabets generalforsamling. Overgang omfatter enhver form for ejerskifte, hvad enten det sker ved salg, gave, bytte, arv, opløsning af ægteskab, sikkerhedsstillelse, kreditorforfølgning, retsforfølgning eller på anden måde.

3.2    Kapitalejeres fortegningsret ved kontant forhøjelse af selskabskapitalen kan ikke overdrages til tredjemand.

4.0    Generalforsamling

4.1    Generalforsamling indkaldes af bestyrelsen tidligst fire uger og senest to uger før generalforsamlingen. Indkaldelse sker på selskabets hjemmeside og elektronisk til alle kapitalejere, der er noteret i ejerbogen og har bedt om skriftlig indkaldelse.

4.2    En kapitalejer, der ønsker at deltage i en generalforsamling, skal meddele det til selskabet senest tre dage før generalforsamlingen.

5.0    Ledelse

5.1    Selskabets ledelse består af en bestyrelse og en direktion.

5.2    Bestyrelsen består af [Insert value] medlemmer, der vælges af generalforsamlingen. Medlemmerne vælges for [Insert value] år ad gangen, som ophører ved afslutningen af en ordinær generalforsamling.

Comment: The board consists of X members elected by the General Assembly. Members are elected for X years at a time. The year finishes at the end of an annual general meeting. If you didn’t make any other decision, board should consist into all of the founders (if 1, it is fine). I made the board for one year.

5.3    Direktionen består af [Insert value] medlemmer, der ansættes af bestyrelsen.

Comment: Again the amount of board members.

6.0    Regnskabsår

6.1    Selskabets regnskabsår går fra [Insert a date] til [Insert a date]. Selskabets første regnskabsår går fra [Insert a date] til [Insert a date].

Comment: Dates dd/mm/yyyy; Here you should decide at which date your accounting period starts and ends. Normally it’s 01 January – 31 December. Second part is more interesting, accoriding to the Danish law you can choose to start your accounting year in the future, so your annual report will be made only for the next year, not for the current one. It will help you and save some time.

7.0    Tegningsregel

7.1    Selskabet forpligtes ved aftaler, som indgås på selskabets vegne af den samlede bestyrelse eller af en direktør i forening med et bestyrelsesmedlem.

8.0    Elektronisk kommunikation

8.1    Selskabet og kapitalejerne kan anvende elektronisk dokumentudveksling og elektronisk post i deres kommunikation med hinanden.

8.2    Indkaldelse til generalforsamling, herunder dagsorden, beslutningsforslag, årsrapport og andre dokumenter; tilmelding til generalforsamling; referat af generalforsamling; ejerbog og andre generelle og individuelle oplysninger kan kommunikeres elektronisk.

8.3    Kommunikation mellem selskab og kapitalejere foregår via de elektroniske adresser, som de har oplyst over for hinanden.

8.4    Oplysning om kravene til de anvendte systemer og om fremgangsmåden i forbindelse med elektronisk kommunikation kan fås ved henvendelse til selskabet.

Således vedtaget den [Insert date]

I bestyrelsen:

_________________________    _________________________    _________________________

[Insert name]                                        [Insert name]                                        [Insert name]

 

 

 

If you have any comments, please share them. I would be glad to keep this and other post updated, so you can find the best advises.

Special thanks to Christian Kjølhede for helping me with some of the terms.

Which type of company should I choose in Denmark

When we are up to make a company in Denmark, there are few things we should consider before we will start filling in documents.

Do we need a company?

It might sound silly, but do you really need a company right now? Do you expect to have sales or an investor very soon, or do you want start buying small assets on your company to get the tax back?

Here is a good information: SKAT (Danish for TAX, fiscal authority) will count your private expenses 3 months back from the moment of making a company. Just remember to keep all of the invoices and receipts for the purchases that will help you generate profit.

I do, so what’s next?

If you decided that this is the right time, think which type of company will you take.

You have two main options:

  • Sole proprietorship

You have no distinguishment between your property and company’s, you cannot deduct VAT, you are fully responsible in a financial and legal way, however it is easier to make it, you have easier rules, less administration and less finance work.

  • Limited company

Your company is a third party, it has its own finance, property and liability. You can deduct VAT, get other benefits and close the door if something will go wrong. However you have more paper work, you have to hire yourself (it’s a third party, so your company will hire you and pay you a salary), make more financial statements and other bureaucratic work.

 

In many countries, also in Denmark the majority of people choose to have a sole proprietorship company, which is very easy to have. Due to the statistics, 70% of Danes choose this type of company, while only 40% of foreigners in Denmark agree with them. There are many reasons for this fact:

Bureaucracy in Denmark is easy to understand.

We (foreigners) often come from countries with complicated tax systems and complex rules about having a company. There are many factors which influence this state of things, but it is worth to mention that Denmark scored nr 1. in Forbes list of best countries to make a company in.

I don’t earn – I don’t pay.

Easy rule which applies for both of the company types. Until you earn money, you don’t have to pay any taxes. In many countries if it exists, it applies only to the 1st type.

Can I have financial benefits from the limited company?

Yes you can. Deduction of the VAT which is 25%, car in leasing, investment deduction and many others. You have to pay more taxes when you take money from the company, because it’s like taking a salary, but to the point when it will be a big issue for you, you will find a good accountant who will tell you what to do.

Can I take this risk?

Of course Ltd (Limited company) won’t save you from breaking the law, but it can save you and your family. In the terms of bankruptcy you cannot save a car you bought on the company, or your office, but when the money will be gone and there will be nothing left to pay your company’s debtors, you can leave. If you will take the risk and choose sole proprietorship, they will chase you for everything that you own in your private life.

So who takes this risk?

There are businesses where this risk doesn’t exist. Some people must have a business to earn money, but they have no entrepreneurship will or skills to do anything else. These people are for example writers, small workshops or services.

 

If you still hesitate which type of company you should take, go ahead and read more on different websites.

 

Type of company

Sole proprietorship in Denmark has two types of companies which depends from the size of your team:

  • Enkeltmandsvirksomhed for a single entrepreneur
  • I/S (Interessentskab) for two or more people

Both of these companies we can create with 1 DKK of a budget.

Since January 2014 we have in Denmark in addition to the others, one type of limited companies, giving us together 3 different types:

  • IVS from 1 DKK
  • ApS from 50.000 DKK
  • A/S from 500.000 DKK

First two are private limited companies, while the third one is public limited company. The only difference between IVS and ApS besides the amount of money which we need to start it, is that 25% of our income has to stay within the IVS company, until we will accumulate 50.000 and be forced to transfer into an ApS.

Best choice in my opinion?

Take IVS and borrow money to your company. You can invest it than in the product and tools that you need, and when you will earn first income, you can take it back without paying a tax, it was a borrow, not an investment. Don’t forget to keep this 25% inside.

 

Who is responsible for the Artificial Intelligence?

Technological boom that we witness changes the world everyday. What 40 years ago was a science fiction movie, today can be done. Do you remember the movie Terminator? Supercomputer that can learn and has an access to the worldwide network, takes control. It seems crazy, isn’t it?

Artificial Intelligence
Artificial Intelligence

Dark Internet

hidden under the Dark Web, Lost Net and many other names. A part of Internet which we cannot access through a normal browser like Firefox or Chrome. In this part of the Internet we can find anything, there is no censorship and so we can write about our government from countries that do not allow that; we can access  information which some people might not want citizens to know about; however we can also sell or buy illegal products or distribute illegal materials (drugs, hitmen, banned movies). It creates many controversies and is often mistaken with the Deep Web. You can read more about it in this short article Deep Web vs. Dark Web

Random Darknet Shopper

This project made by Swiss artists had an aim to purchase each week a random item in the Dark Internet for 100$. It wasn’t of course an AI, it was a bot – software programmed in order to follow rules from the algorithm. It happened however that this bot bought a fake Hungarian passport and 10 ecstasy pills. Already at this point, Swiss court will have a problem: did authors know something like this will happen? – for sure, Dark Internet is full of illegal items; however are they guilty or buying them?

Superintelligence

Let’s take this topic farther, scientists try for years to develop a superintelligence. Artificial Intelligence so efficient and smart that wouldn’t need a human anymore. Most of the significant sources says that we are still far from such an invention, but it stays a concern of many scientist. In an open letterResearch Priorities for Robust and Beneficial Artificial Intelligence” which was signed by such a scientists like Stephen Hawking, Francesca Rossi, or Tom Dietterich we can read:

“Our AI systems must do what we want them to do.”

Already today we can see algorithms that allow machines to learn – in a limited way. What if such a machine would be able to make a crime, something that authors tried to prevent with whole their efforts, but they failed?

Many would say it is similar to have a dog that will bite a stranger, or a kid that will break someones’ window. What if this kid grew up and it’s an adult, which we do not have control on?

Elon Musk warned the audience of MIT “I think we should be very careful about artificial intelligence. If I had to guess at what our biggest existential threat is, it’s probably that. So we need to be very careful.”

What do you think about this thread, is it real?

 

See also Artificial Intelligence

 

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