Opening a branch in Denmark is an easy process if a few requirements are met such as the legal form of the parent company (it has to be a limited company, a partnership or a form of business accepted by the Consolidated Act on Certain Commercial Undertakings) and the location of the foreign company (must be in the EU, EEA and if it’s a non member country, it has to bring evidence that Denmark’s companies are free to open branches there). At least one manager must be a resident in Denmark or in an EU or EEA country.
The name must clearly state the status of branch and must contain the name of the foreign company’s country (not mandatory for the countries included in the Consolidated Act on Certain Commercial Undertakings)
Our company formation agents in Denmark invite you to watch the following video on the particularities of a branch:
Before starting any activities, the branch must open a bank account where the initial capital is submitted and register at the “Danish Commerce and Companies Agency”.
The necessary information for registering is: details regarding the foreign company (name, address, VAT number, more about the articles of association, the type of company and its objectives, the share capital, name and address of the registration authority), details regarding the parent company’s management (name and address), details regarding the branch (the name of it, the decision of opening a branch, the reason why it is established) and details regarding the branch’s management (full name and address and social security number).
Along with the application containing the above information, the company must also provide the memorandum of association and the articles of association of the foreign company, the certificate of registration of the parent company, declaration regarding the directors and secretary accompanied by the declaration regarding the power of attorney, the document of approval of the branch manager with the power of attorney, a passport copy(in case the branch manager is a foreigner) and if it’s necessary, a declaration from the foreign company stating that the Danish companies may open branches in the country of origin.
All the above information must be in Danish or accompanied by a Danish translation. An exception is made for the documents submitted in Norwegian or Swedish.
After receiving a unique registration number, the Danish branch must also register for the workmen’s insurance (in case are there any employees).
Even though is not considered a legal entity, a branch is advantageous especially because it doesn’t have to prepare audited financial statements. However, a certificate copy of the audited financial statements of the parent company must be deposit at the Danish Commerce and Companies Agency. Also the bookkeeping is necessary as the branch must pay VAT like any ordinary local company.
Please feel free to contact our specialists in company formation for more details regarding Danish branches.