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Shelf Companies in Denmark

Updated on Monday 01st November 2021

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shelf-companies-in-denmark.jpgConsidered one of the most attractive countries for business, Denmark has a transparent, efficient and modern environment with plenty of opportunities for foreign investors. When doing business here, businessmen could choose to open a new company in Denmark or acquire an already opened one, also called a shelf company.
 
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 when it comes to this type of due diligence.
 

Advantages of a shelf company in Denmark

 
When it comes to the advantages of a shelf company in Denmark, the most important one is the amount of time it can save. When a foreign investor purchases a Danish shelf company, there is no need to wait for it to be registered. Also, it already has all the required certificates and VAT number.
 
Also, a shelf company in Denmark can bring the following advantages:
 
credibility: a shelf company already has a track record, which can confer more credibility to clients and business partners;
contracting government programs: most of the times, government contracts require a proven track record of the businesses involved;
ability to attract investors: shelf companies in Denmark could attract investors more easily, since they were registered many years before;
ability to get bank credits more quickly: because they have a history, shelf companies can obtain credits from banks more rapidly.
 

Shelf company requirements in Denmark

 
When under the form of a private limited liability company, a shelf company in Denmark requires only a single member in order to be registered, without restrictions on his or her residence. The members of a Danish private limited liability company are accountable for the debts of the business depending on their contribution to it. Our company registration advisors in Denmark can offer more details regarding the characteristics of a private limited liability company in this country. In case you need assistance for opening a bank account in Denmark, our incorporation agents can help you.
 
The purchase of a shelf company in Denmark enables entrepreneurs 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.
 
Once the ownership transfer is complete, the owners can also register a trademark in Denmark, as needed.
 
A shelf company in Denmark will be subject to the same types of taxes as a newly incorporated company:
 
  • - 22% corporate income tax rate;
  • - 25% standard corporate income tax and 0% reduced rate for certain types of goods and services;
  • - DKK 12,000 – DKK 15,000 per year, per employee in social security contributions;
  • - 27% withholding tax on dividends paid to a resident company; a 5% reclaim can be submitted in some cases; a participation exemption can apply and in this case no withholding tax on dividends applies; there is no withholding tax on interest or royalties payments.
 
Our team of tax experts can give you more information about taxation.
 

Subsequent changes to the shelf company

 
Buying a ready-made company allows investors to essentially move past certain steps that may be time-consuming. However, this type of company is incorporated in such a manner in which it can be as general as possible (particularly so that it can be sold to investors from all industries who require a certain business form). This also means that the name of the company will be a generic one that will nor reflect the one the investor had in mind.
 
Choosing the company name can be an important step for those who are starting their own company as it can be used to reflect the identity of the business. When entrepreneurs open a company in Denmark, they typically prepare several names and verify their availability. However, a distinction is made between the registered name of the company (the one registered with the Danish authorities) and the trademark name, the one used for branding purposes. These can be different, however, when investors wish to keep them the same, they will need to change the company name of the shelf company after they purchase it (provided that that name is available).
 
What’s more, the company’s registered address can also be changed once the transfer of ownership is complete. Both the name change and the registered address change will have an impact on the company in the sense that these must be reported to the Danish Business Authority. Moreover, if the company had any previous licenses already in place, such as a license issued by the Medicines Agency, it will need to be renewed once the name and/or address change take place.
 
Our team of company formation agents in Denmark can help you make all of the needed changes to the company’s particulars after you purchase the legal entity. These can be time consuming for some investors and if saving time was important in the first place (thus justifying the purchase of a ready-made company in order to skip a number of stages in company formation), then the assistance offered by our team will be valuable so that you can handle other matters concerning the business. If you reach out to us as soon as possible after the purchase, or even before signing the final documents, in order to receive complete assistance from our team, we will be able to guide you and handle part of the steps in your name, based on a limited power of attorney.
 
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.
 

Reasons to buy a company in Denmark

 
Apart from the distinct advantage of acquiring a shelf company, namely saving time as this procedure can be performed during the course of only one day, another important reason to choose to do this in Denmark is the welcoming business climate.
 
Denmark is an ideal location to base your Nordic headquarters or open a new company when you have an innovative business idea.
 
Some of the main reasons to invest in Denmark, either through purchasing a shelf company or through opening one, are the following:
 
  1. the investment climate: the country enjoys a stable political and economic climate and it has an AAA rating, as per the evaluations performed by the top credit rating agencies in the world;
  2. ease of doing business: the country is constantly included in the World Banks top countries for ease of doing business; in fact, it was the number one country in Europe for several years;
  3. accessibility: the country can serve as a base for many international companies that wish to establish their base in Europe and reach many European clients;
  4. connectivity: Denmark is well connected not only to Europe but also to the rest of the world; Copenhagen Airport offers direct routes to more than 180 destinations.
 
In addition to these top advantages, investors who buy a shelf company in Denmark will find no difficulty staffing their operations. The country has a talented pool of employees and there is an active labor market policy. Employers and employees are protected and the country ranks in the top ten countries in Europe for suitable hiring and firing practices.
 
Contact us for more information about the advantages of the shelf company as well as for complete assistance when purchasing one.
 

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