The UK has left the European Union following a lengthy negotiation period. During this time, British entrepreneurs have had time to decide whether or not company relocation is a suitable option in their case. The decision is one based on the company’s particulars as well as whether or not the said company was dealing primarily within the UK or it relied heavily on its international clients.
For those who are still looking for an option, relocating a UK company to Denmark after Brexit can be a suitable choice. Denmark is not only a Member State, it also allows for great connectivity and it can be used as a springboard to access other EU markets as well as the main headquarters for a company that targets the Nordic countries.
There are many advantages for those who open a company in Denmark
and in this article our company formation team presents the main advantages for UK company owners who are interested in making the relocation.
What should you consider before you relocate your UK company to Denmark after Brexit?
Company formation in Denmark is a simplified process and one that is accessible to foreign nationals. The process is aided by the fact that many of the needed registrations can be performed via online platforms. In those cases in which this is not an option, or when the applicant is required to follow through a number of other steps as well as make submissions in Danish, our team of experts can assist UK nationals who are interested in the process.
Relocating your UK company to Denmark after Brexit is done following a set of steps that will allow for minimum business disruption. Below, we highlight some of these. Please keep in mind that the actual steps may be performed in a different order. Our team can help you with information if you wish to start this process in 2021.
Commence the company formation process in Denmark
: the majority of companies are incorporated as private limited companies; in this case, the founders must start by preparing the Articles of Association and the Memorandum before registering the business with the Danish authorities
Prepare for the transfer: terminating your business agreements in the UK and satisfying any remaining creditor claims will be required in preparation for relocation;
Terminate the company in the UK: the UK legal entity is terminated in order to be replaced by one that will match its form, incorporated in Denmark;
Manage the transfer: the new Danish company can exist under the same business name (if available for registration), however, the agreements will need to be resigned in order to include the new company details.
The actual steps needed for company registration in Denmark are easily handled with the help of our team. You can reach out to us at any time for more information.
Why is Denmark a suitable option?
Denmark is one of the European countries that rank very well in the ease of doing business rankings
. One of the rankings in which this country scores very well, and is of significant importance to those who wish to relocate from the UK after Brexit, is the fact that trading across borders is easy from Denmark. Paying taxes is also a simplified procedure, so is registering property and getting credit.
What are the main regulations for Danish companies?
Understanding the characteristics of the main business forms and the applicable taxation and regulatory requirements is important before starting the relocation process. Setting up a company in Denmark can be easily done, however, we do recommend go get in touch with one of our company formation agents
who can answer more questions.
Below, we list some of the most important taxes as well as the annual reporting and accounting requirements for Danish companies. Most foreign investors, including UK ones who are looking to relocate, will need to take into account these obligations.
- the corporate income tax in Denmark is 22%;
- the value added tax has a standard value of 25% and a 0% rate is also applicable;
- VAT registrations and returns are mandatory for companies that exceed an annual turnover of DKK 50 million;
social security contributions per year per employee are between - 10,000 and 12,000 DKK (approximately);
- other taxes for companies include the stamp duty tax and the real property tax;
- companies in Denmark generally use the calendar year as their tax year, however, another period not exceeding 12 months can be used.