Advantages and Disadvantages of The Business Scheme versus Corporate Form

SkatteInform can provide you expert advice on the choice of The Business Scheme

SkatteInform provides expert advice on the choice of The Business Scheme versus choosing a tax under the return on capital scheme or using the individual tax law and advice on choosing a corporate form.


If you are considering or doing business, you can choose to be taxed under the Business Tax Act. This law has two taxation schemes: The Business Scheme (Virksomhedsordningen) and The Return on Capital Scheme (Kapitalafkastordningen).


The Return on Capital Scheme is the simple taxation scheme, which sets fewer requirements for dividing your private finances and your business finances.


If you are conducting full-time business, it is almost always preferable to choose The Business Scheme over The Return on Capital Scheme.


By choosing The Business Scheme, entrepreneurs have the opportunity to be taxed in almost the same way as a company.


If you choose the limited company, you have to be aware of a number of traps and pitfalls. On the other hand, the shareholder is only liable for the company's debt, unless the banks or other creditors request for a full guarantee for cash credit.


Contact us for personalized advice on the choice of company form and advice for the establishment of companies. We will tailor the advice to your needs to inform you about the advantages and disadvantages of the possible tax forms for your specific situation.


We want to help you, so that you have enough time to get started with your business and to help you avoid the pitfalls of the Danish tax system.