Buying a readymade company in Denmark

Denmark is one of the most competitive economies in the EU, as well as the entire world at the moment. The country is a supporter of free trade, favored by vast natural resources and highly developed infrastructure, it is naturally considered a favorite destination for foreign investment.

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If you are considering investing in Denmark, it is worth taking into consideration that the Danish government is invested in minimizing bureaucracy and that corruption is almost unheard of in this country. Moreover, the country has one of the most flexible labor markets in the world, as well as highly qualified workforce.

How to start a business in Denmark?

Many people will find that buying an existing business is a safer option than starting a new business from scratch. The benefits of buying a business are self evident. The business you buy will have a trading history, will have customers. By looking through the books you will be able to determine turnover and profit percentages, and perhaps a consultant who understands how to buy a business, and who can help you understand the figures to make sure the price you are paying for the business is fair.

Buying a business in Denmark is likely to be a very serious decision, so it goes without saying that the legal and financial aspects of buying a business are hugely important. It is advisable to employ the right people, who understand the local market, and will be able to advise on the potential of the business, as well as the history of the business. The professionals will help you to assess the real value of any good will attributed to the sale of the business, as well as how the business might be improved after purchase. A good accountant will have your best interests at heart.

Types of Danish companies

Danish Private Limited Company (Anpartsselskab – ApS)

A private limited company is a company having at least one shareholder regardless of his residency. The minimum share capital of a private limited company in Denmark is 80,000 DKK and this amount is divided into shares. These shares are not negotiable, nor transferrable. The shareholders of this company are liable only to the extent of their own contribution.

Danish Public Limited Company or stock corporation (Aktieselskab – A/S)

At least one founder is required for setting up a public limited company with the condition to provide a minimum share capital of 500,000 DKK. Shareholders are not liable for the company’s obligations. This type of company also provides shares for its members, but they can be offered to the general public as opposed to the private limited company in Denmark.

Danish General Partnership (Interessentskab – I/S)

It is necessary for at least two members to agree upon setting up a partnership. They can be either individuals or legal entities, with full liability for the company’s obligations. As a matter of fact, this is the main characteristic of a general partnership. It is mandatory for a general partnership in Denmark to be registered with the Danish trade register.

Danish Limited Partnership (Kommanditselskab – K/S)

A limited partnership in Denmark has its similarities and its differences with a general partnership. At least two partners need to sign an agreement in order to set up a limited partnership and they can be individuals or legal entities. The characteristic of this type of business is that at least one partner is general and at least one is limited, with limited liability to the extent of his own contribution. Registration with the Danish trade register is also compulsory.

Danish Sole Proprietorship

An individual who wants to set up a company in Denmark on his own is called a sole proprietor. The single member has full liability on the company’s obligations and has the obligation to register with the tax authorities if the activity performed deals with trading or if the proprietorship has employees.

However, private limited companies (Anpartsselskab – ApS) are the most popular among those who starts the business in Denmark. Moreover, many foreign businessmen find it useful to have shelf companies in Denmark for their business development.

Danish shelf companies are usually private limited companies. So, when under the form of a private limited liability company, a shelf company in Denmark requires only a single member without restrictions on his or her residence. The members of Danish private limited liability company are accountable for the debts of the business depending on their contribution to it. Our can offer more details regarding the characteristics of a private limited liability company and purchase thereof in this country.

The procedure of purchase

The procedure of purchase is not complicated. You do not event need to visit our office. All formalities may be fulfilled using email upon signing the agreement on services. The details of purchase procedure and prices are discussed with each client individually.

The purchase of a shelf company in Denmark enables businessmen to set up a company almost immediately. Just after the purchase, an extraordinary shareholder meeting has to be held to vote for the appropriate changes to the Articles of Association, to establish the new members for the board of directors and to name the auditor.

For more detailed information and to find out the costs involving the purchase of a shelf company in Denmark, we invite you to get in touch with our Danish company formation consultants. It is advisable to perform a thorough due diligence before purchasing shelf companies in Denmark, in order to make sure that they do not have any pending debts or other issues. Our company formation professionals in Denmark can help you with this type of due diligence and will advise on purchase conditions.

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