Rønne & Lundgren
Rønne & Lundgren is one of Denmark’s leading law firms. For many years we
have cooperated with the Danish promotion agencies for inbound investments:
Ministry of Foreign Affairs of Denmark
Assisting foreign clients in setting up, expanding or acquiring businesses in Denmark is one of our core competencies. We assist in all legal and tax matters.
WHY CHOOSE DENMARK?
You may easily find persuasive commercial arguments for choosing Denmark as your business location. Most of the strongholds in relation to Cleantech, Life Science, ICT and Danish business friendly climate in general are highlighted in this magazine.
On top of this, your business will benefit from:
1. Easy to establish and do business in Denmark
A company may be incorporated online within a few hours, ready to operate. Everything may be handled by email. No Danish residence requirement applies for registered management. Accordingly, foreign management may maintain full control. Further, no local shareholder requirement applies. The minimum capital of approx. EUR 10,800 (ApS) or EUR 67,100 (A/S) is not a cost or investment since the capital may be part of the operating capital.
2. Unique tax rule makes a Danish company perfect for expansions into Europe
In most other countries expansion through branches leads to double taxation of income from branches. However, according to a unique tax rule, a Danish company is generally not taxed of income from foreign branches.
In Denmark you will save cost and administration by avoiding obtaining relief from double taxation according to double tax treaties. In addition, relief of double taxation among other countries often results in the highest tax rate applying. All of this you will avoid by expanding through a Danish company.
3. Danish corporate tax rate of 25%
The Danish corporate tax rate is among the lowest of the old EU countries. Setting up a Danish company as a profit centre for tax purposes will often result in global tax savings.
4. Most flexible labour law – easy to scale down
Denmark offers the most flexible hiring and firing in Europe. Accordingly, scaling down is very cost-efficient. Generally, no restrictions apply in relation to firing approvals from unions, first in last out or other obstacles in case a company has to take the unfortunate position of scaling down.
5. Virtually no social security payment for employer
As part of the world famous Danish flex-security model, the employer only pays social security in the level of annual payment of EUR 1,350 per employee. No additional social security payment on top of the salary is paid by the employer in Denmark as opposed to most other European countries.
6. Other benefits
Denmark offers a number of other advantages such as fasttrack work permits for non-EU employees, expat taxation of only 26% for 5 years, and a number of other benefits that may be advantageous for your business.
You may contact us at any time to discuss a solution for your Danish business operation.
Ulrik Fleischer-Michaelsen, Partner and Head of Corporate & Commercial firstname.lastname@example.org, direct: +45 3525 2937