Introduction to setting up a subsidiary in Denmark
Danish subsidiaries hold the same company standing as conventional limited liability companies, and are welcomed into the country as equals with Danish domiciled businesses. Similarly, foreign investment is encouraged with much of the company law in Denmark in accordance with EU regulations. The recent implementation of online services means that the establishment and registration process can now be completed in a very short timescale.
What are the main formalities of a Denmark subsidiary?
- The minimum share capital required is DKK 80,000
- The Memorandum & Articles of Association of the subsidiary
- The resolution of the parent company detailing its decision to form the subsidiary
- A registered address in Denmark
The documents shown above must be filed with the Danish Commerce and Companies Agency in order to register the subsidiary. The registration process can be completed online through the Internet portal, WebReg.dk, or by a paper application from the Commerce and Companies Agency.
All required documents must be presented in Danish.
What are the accounting requirements of a Denmark subsidiary?
The required share capital must be registered with the Danish Commerce and Companies Agency.
Registration of the subsidiary with the Danish Tax and Customs Administration (SKAT,) or online via Virk.dk, is required for taxation. The accounting requirements are regulated by the Danish Financial Statements Act.
Depending on the business activity of the subsidiary, VAT accounts are calculated either monthly or quarterly, and tax accounts annually.
An audit is required if the annual turnover of the subsidiary exceeds DKK 3 million.
For further information on accountancy services and tax rates in Denmark, please contact us.
Subsidiary Formation Packages
There are various aspects involved in incorporating a Danish subsidiary. Our team are proficient in these requirements and will guide you through every step of the formation process.
We provide subsidiary formation packages which include services such as provision of a registered office and registration for VAT, and will ensure your formation runs efficiently.
You can rely on us to relieve the stress of your subsidiary formation, successfully managing the entire process on your behalf.
For further information on subsidiaries in Denmark please contact us using the form below.