ReXKern >> UK >> Form a Danish Company
“Form an SMBA (limited liability company) with no capital required and avoid
personal liability.”
Legislation for SMBA companies has existed since 1994/1995, and the term “limited
liability” has been around for 100 years or more. Until mid-2006 this company form
was only used by large companies and public enterprises, but today the SMBA company
form is more popular than ever, and an SMBA company from RexKern offers all the
benefits of limited companies and cooperatives but without the disadvantages.
- No capital requirement
- Shareholder loans are permitted
- Dividends can be distributed several times a year
- No accounting obligation to the Danish Commerce and Companies Agency for small businesses.
- Anonymity
- The company is only liable to pay tax to Denmark if the directors reside in Denmark.*
- No auditing obligation.
Personal liability
In Denmark there are approximately 400,000 sole proprietorships for which the owners
have personal liability. Transactions in the day-to-day operations could lead to
financial problems for the rest of your life, and there are no good reasons why
you should operate a sole proprietorship when SMBA is an alternative.
Avoid annual reports
Annual reports must only be submitted to the Danish Commerce and Companies Agency
if two of the following three conditions are exceeded:
- A balance sheet total of more than DKK 6 million
- A net turnover of more than DKK 12 million
- More than 10 employees on average
You do not need to file an annual report for an SMBA company, which is an obvious
advantage over an Ltd (private limited company).
From 2010 all Danish ApS and A/S (public limited company) companies must report
their ownership, and this is information that will be made publicly available on
the internet. SMBA companies are not affected by this, and you avoid your name being
searchable in the register. In addition, founders are not published in the business
directories.
Equity and subordinated loan capital
The company is formed with a variable capital and no deposits are necessary on formation.
Management
One director is sufficient. The management does not have to be Danish and can be
situated anywhere around the world. If the company has a foreign management, the
company is only liable to pay tax to Denmark if it receives income from sources
here in this country.*
VAT registration
The company can be registered for VAT on a par with other Danish company forms,
and additional capital requirements are not necessary. Previously a company was
required to have a minimum equity of DKK 25,000 to be registered for VAT, which
in effect was a capital requirement, but this requirement has also now been removed.
Several owners
An SMBA company MUST have more than one owner, otherwise it will be regarded as
a sole proprietorship.
If you do not wish to own the company together with others, RexKern can offer you
an American LLP company as co-owner for an extra charge of only DKK 990.
We have asked one of Denmark’s leading tax experts about the tax liability to Denmark
for foreign directors. Contact us at
skattesvar@rexkern.com
to request a copy of the response.
The tax is an income tax and accounts for 25% of profits. Income from foreign branches
and properties is tax-free.
Management
One person is sufficient. The management does not have to be Danish and can be situated
anywhere around the world.
Order a company here for EUR 170.00 (inclusive VAT) or
find out more on our website.