Browse Category

Company in Denmark

How to create and manage a company (start up) in Denmark.

Creating IVS and ApS company in Denmark

Now when you know the differences between different types of companies, you probably decided to make IVS or ApS company, depending on your initial budget. For the sole proprietorship companies website and some steps will be the same, however you should check more references to be sure about this.

How do I create a company?

Creating IVS and ApS company in Denmark  is very easy. You have to prepare few documents before, and whole registration shouldn’t take you more than 30 min. Website where you can find all of the necessary data, templates and other help is Virk. They translated it partly into English, however now (V 2015) the English website is closed. Check the translation few times, since you wouldn’t like to make a mistake here. The only official authority which provides now with a reliable information is Danish Business Authority.

 

What documents do I need?

According to the Erhvervsstyrelsen (Danish Business Authority) you have to attach 3 files to your online application:

Information and examples can be found on Virk, however here I will also show how I have filled them in after a consultation with other entrepreneurs, lawyer and and accountant. To find it on Virk just simply copy-paste name of the document into their search engine.

Stiftelsesdokument – example and explanation in English

Stiftelsesdokument 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 stiftelsesdokument, it will be easier for you to edit the original one in .doc while reading advices here.

 

Stiftelsesdokument

 

________________________________________
Dette er et eksempel på et stiftelsesdokument for et iværksætterselskab, anpartsselskab og aktieselskab. Stiftelsesdokumentet skal tilpasses til den konkrete virksomheds situation. Vi opfordrer dig til ikke at bruge dokumentet uden først at have rådført dig med en professionel rådgiver.
________________________________________

Stiftelsesdokument (IVS, ApS og A/S)

Bemærk: I teksten bruges ordet ”kapitalejer” som benævnelse for en anpartshaver eller aktionær og ordet ”kapitalandel” som benævnelse for en anpart eller aktie. I iværksætterselskaber kan selskabskapital kun indbetales i kontanter, og pkt. 4.1 og 4.2 kan derfor ikke anvendes her.

Undertegnede

[Your name]

[Your address]

[your CPR number]

Comment: If there is more than one founder, write all of them here. Also company’s data can be put here (company name, address and CVR number). It can minimize risk even more, if you think about a holding company or other structure of companies.

stifter herved et [insert ”iværksætterselskab”, ”anpartsselskab” or ”aktieselskab”] under navnet

Comment: These stands for:

1. ”iværksætterselskab” – [entrepreneur company] private limited company

2. ”anpartsselskab” [ Limited liability stock company] private limited company

3. ”aktieselskab”- [stock company] public limited company

For more information check Which type of company should I choose in Denmark

 

 

[Company Name] [choose ”IVS”, “ApS” or “A/S”]

1.0 Vedtægter

1.1 Selskabets vedtægter er vedhæftet som Bilag A.

2.0 Selskabskapital og tegningskurs for kapitalandele

2.1 Selskabskapitalen udgør nominelt [insert amount of your capital] kr., der er opdelt i kapitalandele på nominelt [choose the value of each share] kr.

Comment: In the first field I suggest to choose a minimal amount of capital you need to start, or 1 DKK. I have taken the registration fee + bank account fee. In the second field I have chosen 1 DKK, it makes easier to count amount of shares you have in your company if you would like to share them / sell / buy.

2.2 Tegningskursen for kapitalandelene er [insert ratio].

Comment: Nomination value
The founding document must state the nomination value of the shares (stock share or aps shares) being issued in connection with the foundation of the company.  E.g. if a “Stock company ” is founded with a shareholder capital of 600,000, and you need to pay 900,000 to receive 300,000 worth of shareholder capital, then the nomination value is 300. The nomination value is 300 means that you need to pay 3*300,000 for your portion of the share capital.

I made it 100.

3.0 Tegning og indbetaling af kapitalandele

3.1 Alle kapitalandele skal være tegnet senest den [insert date].

3.2 Alle kapitalandele skal være fuldt indbetalt senest den [insert date].

Comment: Dividing shares and paying money in. If you don’t have any specific circumstances enter here the date you want to create your company in. (maximum 3 months before from the current date).

4.0 Tegning af kapitalandele mod apportindskud (gælder ikke for iværksætterselskaber)

4.1 [Insert name] tegner kapitalandele i selskabet mod indskud af [Insert amount].

Comment: Name and amount of shares (in DKK) how you split it. For example John Smith 500 DKK (when 500 was an initial capital and John is the only founder or planned owner of these shares).

4.2 Vurderingsberetning for apportindskuddet er vedhæftet som Bilag B.

5.0 Stiftelsesdato

5.1 Stiftelsen af selskabet skal have retsvirkning fra den [Insert date].

Comment: Foundation date, again remember that it’s up to 3 months ago, I don’t know about a limit forward but if you write here next year, just make this company in the future.

6.0 Regnskabsår og revision

6.1 Stiftelsen af selskabet skal have regnskabsmæssig virkning fra [Insert date].

Comment: Foundation of the company starts it’s accounting time from: choose a date. It’s best if you will contact Virk or an accountant to give you an advice about this date, it depends from your business. I have chosen a date of foundation, however if you don’t have to (and in many circumstances you don’t) you can safe yourself many hours of unnecessary accounting.

6.2 Selskabets årsrapporter skal [Insert ”revideres” or ”ikke revideres”].

Comment: The annual report [has] [doesn’t have to be audited]. For your own need you should choose that it doesn’t have to be audited, however it can if you want it at any moment. Often investors demand to have audited accounting.

7.0 Stiftelsesomkostninger

7.1 Selskabet afholder omkostningerne ved stiftelsen af selskabet. Omkostningerne forventes at beløbe sig til ca. [Insert amount] kr. eksklusive moms.

Comment: Founding expense: it’s 670 DKK to the Danish Business Authority + creating a bank account. You can also add here lawyer consultation, accountant and other, and with the invoices get VAT back (either for the bank account or registration I didn’t pay any VAT). My amount was equal to the capital.

Undertegnede stifter herved selskabet og tegner samtidig den under hver stifters underskrift anførte selskabskapital uden forbehold:

Dato: [Today’s date]
Stifter: [Founder’s name]
Tegnet selskabskapital: [Insert amount] kr.

 

Underskrift:

Comment: All of the founders (copy paste for more than one), you can change the original document (Underskrift Eng. Signature) and put it lower to have a space to sign.

Bilag: Bilag A (vedtægter) og Bilag B (vurderingsberetning)

 

 

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.

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.