What do you need to know before opening your business in Denmark?
Denmark has become a great destiny in Europe for entrepreneurs and innovators aspiring to start a new business. The government of Denmark has made it easier for entrepreneurial expats to set up their own businesses. The government has simplified the start-up process to just a few simple procedures needed to start a new business with minimal costs involved. If you happen to go to Denmark and want to know how to start a business, you can visit Danskeanmeldelser for more information and guidelines. You can also read reviews on ferratum because reading business reviews can equip you with more knowledge on the procedures of starting a new business in Denmark. The good thing with Denmark is that you can do all business registration processes online without much strain of running from office to office with a lot of paperwork. Foreigners can easily start and manage their businesses without many restrictions. Denmark is a business-friendly zone in European countries because the country accepts documentation in English. It is crucial to know the kind of businesses you can start in Denmark before starting any business.
- Sole proprietorship: This is the type of business a single person can start and run alone. The owner of the business takes the complete liability of the business. The owner and the business is a single entity. If the company has an employee, it must be registered with the Danish tax authorities.
- General partnership: this is the kind of business that must have a minimum of two owners who are responsible for the business’s debt and liabilities. It is also referred to as Interessentskab in Denmark. The business and the partners must be registered at the Danish Trade Register.
- Private Limited Company: a private limited company in Denmark can be started with a single shareholder. However, the minimum capital requirement is DKr80 000. The shares in this type of business are not transferable and are non-negotiable. The owner is only liable for the amount of money they have invested in the company.
- Limited partnership: This type of company must have at least two partners, with one of the partners having limited liability. The business has to be registered with the relevant authority.
- Public limited company: In this kind of business, the shareholders and the business are separate entities. The minimum capital requirement DKr 500,000, and the shares can be listed on the stock exchange or distributed among the shareholders.
When thinking about starting a business in Denmark, you need to put the following into consideration:
- Business Idea
Whether big or small, all businesses start with an idea, and that’s one thing that you need to have before you start any business. You need to think outside the box to come up with a good idea. There is a need to plan for your business for it to thrive. You need to do enough research on the available problems so that your business can solve a particular problem and satisfy customer needs.
- Work permit
The most important thing you need to have before starting any business in Denmark is a business permit. This regulation does not bind the European Union citizens because they can study and work in Denmark under the EU regulations on freedom of movement. They don’t need a visitor’s visa, work, or residence permit; however, they should take a registration certification from the state administration. Suppose you come from outside EU nationalities and want to start a business or work in Denmark. You will have to register at the Danish Agency for Labour Registration and Internal Recruitment.
- Tax Registration
After registering your business with the relevant business authority, the next thing that you will need is to register with the Danish Customs and Tax Administration which is responsible for tax collection in the country. Whether you are plan to sell goods or offer services, you have to decide what type of business you will be doing. This will determine whether to register for a CVR number or not. The CVR number is a business number identifying the same way the CPR number identifies you as a person.
Denmark is a good destiny for entrepreneurs and investors. All you need is to realize a business is a marathon with a lot of competition. Therefore you need to be innovative when running your business in order to survive the competition. You should ensure that there is enough demand for the products or services you are selling to people. No matter how optimistic you are, you have to accept that life changes and things could get tougher for your business. Therefore you need to have financial backup plans in the event of the downfall of your business.