Set up Business in Denmark

Set up business in Denmark, we can do for you whether you only shall be here for a limited period doing a project, e.g.as a Construction Company fulfil a contract/project as a subcontractor, hiring out labour, or you want to do business in Denmark in a more permanent matter.

In this case, you should consider whether you will like to set up a Limited Company see the different kind of possibilities at “Setting up a company in Denmark” or a branch ses “Setting up a branch in Denmark”

After set up of these entities we can offer to provide these legal entities with nearly all services to run the daily business in form of accounting, payroll, bookkeeping, Financial Statements, Tax returns for CIT and VAT, audit and legal services

Construction Company

Bigger construction work will normally need different kinds of setup and registrations and the characteristics are that normally this will be only for a limited period.

Examples of needed registrations below:

• Registration at RUT register (Register for Foreign Service Providers)
• Register for Permanent Establishment (PE) for income taxes (CIT) if period exceed a certain length of time (Depending of the Double Taxation Treaty).
• Register for VAT, Permanent Business Premises (definition different from PE above) so sometimes the case not to register for VAT. Special rules for Construction sites and Real Estate with reverse charge invoicing etc. Sometimes a combination of reverse charge and register in case of subcontractors or import of goods used in the process
• Register workers at Authorities
• Register workers for taxation if work is done for a PE
• Set up Payroll System and maybe register a Danish Bank account
• Mandatory Danish insurance for workers compensation.

We can help you defining and find the right solution for you company’s business in Denmark.

Having set up of the necessary registration, we can offer nearly all services to run the daily business in form of accounting, payroll, bookkeeping, Financial Statements, Tax returns for CIT and VAT, audit and legal services in the period you have to be in Denmark to finalize the projects.

Hiring out Labour

If your company providing labour to a Danish company, there are special rules for taxation of the workers. In these situations, your company will not have Permanent Establishment in Denmark. Then You are not considered to do business in Denmark in relation to Income tax, but some registration will be necessary and for the workers special hiring out labour tax rules will apply, and obligation to pay the payroll taxes will be your customers, who have the management of the workers.

We can set up the systems that handles this special tax and provide your customer with relevant data for paying the taxes, which will be, withhold in the payment for you invoices. More information about the special rules at “Hiring out labour”

Contact Kurt Bülow and have a talk of, what might be the best solution in your specific situation kurt.bulow@ecovis.dk or direct phone +45 5766 2462.

Taxinformation:

• Companies, income
• Group taxation
• Income from shareholdings (corp. taxation)
• Distributions (dividends, royalty, interest)
• Foreigners working in Denmark benefit from the Danish welfare system
• Social Costs (if social secured in Denmark)
• Favourable terms for people stationed in Denmark
• Income tax
• Income tax
• Tax authorities
• Tax liability
• Full liability
• Limited liability
• Types of income
• Types of income
• Expat scheme 27%
• How the tax works
• Income tax return
• Double taxation
• Value-added tax (VAT)