TAXATION

As mentioned above, corporate tax is imposed on worldwide income if the management of the company is in Denmark. If the management is elsewhere then there is no imposition of Danish taxation.

 

SHAREHOLDERS

The minimum number of shareholders required are two. Details of the shareholders don’t appear on public files. If the SMBA is a hybrid company then the guarantor members don’t appear on the public register.

 

DIRECTORS

The minimum number of Director required is one. Directors appear on the public file.

 

ANNUAL REPORTING

Annual accounts must be filed every year with the tax office if the SMBA has Danish Directors. It should also annually file AUDITED accounts if more than one of the following requirements is fulfilled:

* Ten or more than ten employees
* If the annual turnover is more than DKK12 million (USD 2million)
* If the net profits are more than DKK 6 Million (USD1million)

If the management and control is not in Denmark then a zero-income tax declaration must be filed and also a tax indemnification to the Companies House in Denmark must be filed. However in case more than one of the above mentioned a, b, c requirements above are met then filed audited annual returns to Companies House must be there. This can easily be overcome by distributing profits amongst the shareholders (or Guarantor Members) at continuous intervals and at the same time by not employing ten or more than ten people.

 

TIME SCALE

It takes about 3 weeks for incorporating a company. Danish Companies can start trading after the application with the Danish Commerce and Companies Agency (Companies House) has been filed.

 

RESTRICTIONS ON ACTIVITY AND NAME

The names must end with the letters ”SMBA”. Names don’t necessarily have to be in the Danish language.  Names should be individual enough in order to prevent confusion with the name of existing companies which indicate an activity. These names are acceptable only if the mentioned activities are intended to be performed by the company. Names must, in advance, be searched through the Danish Commerce and Companies Agency.

 

LOCAL REQUIREMENTS

A registered office address within Denmark must be maintained by a SMBA company. It should also have a resident representative in case the management and control of the company is outside EU.

Disclaimer: Every effort has been made to make sure that the details provided are correct and up-to-date. However it does not constitute any legal or professional advice. We do not take any responsibility, legal or otherwise, for any mistake..