Establishment of business

Oversigt

Would you like to start a business? Are you aware of the tax issues that may arise?

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At SkatteInform, we guide you through the process of starting a business. We focus on the tax-related issues that may arise in the future. Our role is not to establish a company for you but to provide a helping hand to ensure the correct choices are made from the start.

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What does our service include?

It is extremely important to know your business idea, your business plan, and which business structure you want to use when starting your company. A poor choice of business structure can often cost you a lot in taxes. Therefore, SkatteInform will guide you through the following three points:

Evaluation of your business idea: We assess the advantages and disadvantages by identifying the risks that may be associated with your industry and situation.
Assessment of budget and business plan: Based on your budget and business plan, we identify potential risks you should be aware of, and how you can stick to your budget and business plan.
Guidance on the choice of business structure: SkatteInform evaluates your choice of business structure and the advantages and disadvantages of your chosen structure, both now and in the future.

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Common business structures:

As an entrepreneur, you can start either a sole proprietorship or a capital company.

Sole proprietorships, including individual enterprises and partnerships (I/S)
Capital companies, including private limited companies (ApS), public limited companies (A/S), and holding companies

Business structures

Sole Proprietorship
This structure is beneficial for those who do not have the capital requirement of at least DKK 40,000. However, the downside is that you, as the owner, are personally liable for all the company’s debts with your entire personal assets.

Partnership (I/S)
If you want multiple owners without a capital requirement from the start, you can opt for a partnership. Here, the owners are jointly and severally liable for the company’s debts, meaning each owner is fully liable for the same debt.

Private Limited Company (ApS)
A private limited company is beneficial for those who do not want to be personally liable for the company's debts. There is a capital requirement of at least DKK 40,000.

Public Limited Company (A/S)
A public limited company is a legal entity where the shareholders are not personally liable with their private assets. There is a capital requirement of at least DKK 400,000 at the time of incorporation, for which the founder is liable until the capital is fully paid in.

Holding Company
A holding company serves as an intermediary between you and your capital company. You own the holding company, and the holding company owns your operating company/capital company.

You can read more about the advantages and disadvantages of the different choices below:

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Advantages and Disadvantages of Different Structures

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Startup/Formation

Sole Proprietorship/Partnership
Must comply with the following laws and regulations:

No requirement for articles of association
No minimum capital requirement at startup
Decisions are made on an ongoing basis without the need for a general meeting

Private Limited Company/Public Limited Company
Must comply with the following laws and regulations:

Requirement for articles of association
Minimum capital of DKK 40,000
Decisions must be made through a general meeting

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Legal Framework

‍Sole Proprietorship/Partnership
Must comply with the following laws and regulations:

Danish Law on Certain Commercial Businesses
Minimum Requirement Executive Order
The Bookkeeping Act
General tax laws, primarily the Personal Tax Act and the Business Tax Act

Private Limited Company/Public Limited Company
Must comply with the following laws and regulations:

Danish Companies Act
The Bookkeeping Act
Danish Financial Statements Act
Primarily the Corporation Tax Act and the Capital Gains Tax Act
All agreements must be made in writing with the company

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