BEFORE YOU ACT
Setting up an LLC (ApS) in Denmark is easier and quicker then in other Nordic jurisdictions. However, once you get past the initial phase and the LLC is registered there are further mandatory registrations to be made that are all but impossible to do without local help.
Below is a summary of the issues one needs to address before going ahead and forming a legal entity.
SHARE CAPITAL AND SHAREHOLDERS
To register a Danish LLC, you need a minimum share capital of DKK 40,000. Shareholders appoint and dismiss Directors. Ultimate power within the company is with the shareholder(s) and the Annual General Meeting of Shareholders.
DIRECTORS
At least one Directors and member of the Board. Directors can be of any nationality and reside anywhere in the world. Nominee Directors are not permitted. Managing Director/CEO is optional. Although local Directors aren’t mandatory we strongly recommend having at least one local Danish Director to avoid a lot of administrative hassle when running the LLC. Nordic GEM can provide experienced Directors resident in Denmark.
REGISTERED OFFICE ADDRESS
It is mandatory to have a legal address for your LLC. Nordic GEM can provide you with a registered office address where your official letters will be delivered and scanned for you.
COMPANY FORMATION
Nordic GEM is happy to assist the whole process of setting up your LLC. The formation usually takes less than one week from filing incorporation documents with the Danish Business Authority. The share capital needs to be paid into a corporate bank account before the registration is complete.
BANK ACCOUNT
Setting up a bank account with a traditional Danish bank is very difficult nowadays. If your company has problems with this, you can choose to deposit the share capital into an escrow account and then open a bank account with a challenger bank such as Revolut or 3S Money. Nordic GEM can assist you with opening a corporate account with a challenger bank.
AFTER THE LLC IS REGISTERED
Once your LLC is registered there are some crucial elements remaining before the company is fully compliant in Denmark.
- The Director’s access to NemID, an electronic authentication and signing tool
- Access to the mandatory virtual mailbox of the company
- Registrations with the Danish Tax Agency
- Registration of your corporate bank account with the Danish Tax Agency as a NemKonto
Above is the final part where it gets tricky in Denmark. Nordic GEM can assist you all the way and provide practical solutions so you can go ahead with your business ventures in Denmark.
ACCOUNTING
Ongoing accounting and annual filing of financial statements is mandatory. Providing these services from outside Denmark is not practical and can be very challenging indeed. Nordic GEM can handle your accounting for you.
PAYROLL
If you are going to hire a team in Denmark, you can count on Nordic GEM to help you with the payroll.
