Proaktif

17/03/2025

Forms of Business Activities in Denmark

When it comes to forms of business activities, Denmark offers several options, including: sole proprietorship, joint-stock company, general partnership, limited partnership, branch of a foreign company, cooperative associations, representative office of a foreign company, and limited liability company. Before starting a business, it is advisable to gather information on the specifics of each type of business structure and choose the one that best suits your needs. Both domestic and foreign entities have equal access to all legal forms of business operation.

The most common types of businesses:

Self-employment: Sole Proprietorship (Enkeltmandsvirksomhed),
Joint-Stock Company (Aktieselskab - A/S),
General Partnership (Interesselskab - I/S),
Limited Liability Company (Anpartsselskab - ApS),
Limited Partnership (Kommanditselskab - K/S),
Branch of a Foreign Company (Filialaf udenlandsk selskab),
Representative Office of a Foreign Company (Salgskontor),
Cooperative Association (Andelsforening/Brugsforening).

11/02/2025

Key aspects of accounting in Denmark

In Denmark, bookkeeping covers every individual and legal entity that owns its own business, and a lack of knowledge and failure to do so can result in serious financial penalties. The most important issues related to accounting in Denmark are:
- danish accounting rules,
- danish accounting chart of accounts,
- danish business registration,
- registration and required permits,
- accounting for sole proprietorships in Denmark,
- accounting for companies in Denmark,
- classification of reporting obligations,
- taxes, insurance, benefits,
- accounting laws in Denmark,
- deadlines, documentation, costs and rates for different legal forms,
- obligations of employers in Denmark,
- auditing in Danish companies,
- Nemkonto, Tastselv, Pension, CPR, A-kasse and DK health card systems,
- SKAT-related settlements and adjustments.

Knowledge of Danish accounting rules is essential to the smooth management of a company in Denmark. Focusing on registration requirements, taxes and reporting obligations will help you run your business in Denmark properly.

20/06/2023

Intrastat is crucial for providing government agencies with data to develop trade policies, plan transport infrastructure, and evaluate market conditions. It helps identify VAT fraud, ensures accurate trade statistics, and supports policy-making.

For businesses, Intrastat data reveals trends in intra-EU trade, highlighting high-demand products and new market opportunities. This information aids in strategic decisions, such as targeting high-demand regions or expanding distribution.

Businesses must file Intrastat declarations if their trade exceeds national thresholds, ensuring compliance and contributing to reliable EU trade data.

22/05/2023

In Denmark, the tax system is progressive, with rates increasing as income rises. Taxes include an 8% labor market contribution, basic and top taxes, municipal tax (varies by location), church tax (for Evangelical Lutheran Church members), and property taxes for homeowners. Income is classified into A-Income (salaries, benefits, etc.) with taxes deducted at source, and B-Income (fees, self-employed earnings) which must be declared by the taxpayer. Deductions can be made for trade union fees, transportation, and pension contributions. The Danish Tax Authority provides annual statements, and adjustments can be requested if needed. For information on foreign tax conditions, visit skat.dk.

25/04/2023

When calculating the total cost of employing someone in Denmark, it's essential to factor in more than just the gross salary. This includes contributions to labor market insurance (Aes), the supplementary pension (ATP), and the holiday appendix (Ferietillæg).

Additionally, consider the costs for maternity contributions (Barsel.dk) and the administration of holiday funds. Don’t forget to include the financing contribution (FIB) as part of your comprehensive cost assessment.

23/03/2023

In Denmark, a general partnership can be established by at least two individuals or entities without requiring share capital. Contributions and acquired property make up the company’s assets. To register, sign a memorandum of incorporation and submit it with the application to the Enterprise and Trade Agency within eight weeks. Upon approval, you will receive a Central Company Register number (CVR).

Note that a general partnership lacks legal personality but can enter into contracts and participate in legal proceedings.

17/02/2023

Attention Danish business owners! Our latest resource offers a thorough breakdown of annual accounting requirements, including crucial information on VAT registration and tax credits. Discover how to navigate settlement documents and deadlines for various company types, from limited liability companies to general partnerships. Don’t miss out—explore all the details now.

We help with the formalities related to the Danish company - setting up a business, tax settlements, accounting management and dealing with official matters.

19/01/2023

Denmark's double taxation treaty helps prevent double taxation for taxpayers. It offers two options: either deduct taxes paid in the employment country from those in the residence country, or tax income only in the country where it was earned, exempting it in the other.

Note that under recent changes, if choosing the deduction option, the maximum deduction is PLN 1,360. This limit applies to various types of foreign income, including employment and freelance work.

21/12/2022

Danish companies face a 22% corporation tax (CIT), which increases to 25% if annual turnover exceeds DKK 50,000. Income tax applies to total income, including property and capital gains. Complete and submit your tax declaration (Selvangivelse) via www.skat.dk by July 1 to avoid penalties of up to DKK 2,500. If you're entitled to a refund, it will be shown as a positive amount in your tax account. Non-EU, EEA, or Swiss citizens must secure a residency permit via the New to Denmark platform before starting a business.

Skriv ikke personlige oplysninger (fx dit cpr-nr.). Vi gemmer søgninger til statistik, så vi løbende kan forbedre søgefunktionen. Se Privatlivspolitik

16/11/2022

Understanding employee costs in Denmark involves several key components beyond just the gross salary. Include contributions such as the labor market fund for secondary persons (AFU), holiday allowance (Feriepenger), and the administration of frozen holiday pay.

Also, account for the mandatory private health insurance and the financing contribution (FIB). Properly incorporating these elements ensures an accurate calculation of total employment expenses.