Although taxes in that country are among the highest in Europe, some specific tax solutions may constitute an interesting proposal for entrepreneurs wishing to invest in Denmark.
The taking up and pursuit of the business activities in Denmark are laid down in the following provisions:
- The Carrying on Business for Profit Act of June 1996,
- The Public Limited Companies Act of June 1973, as amended in January 2002 and June 2003,
- The Private Companies Act of May 1996, as amended in April 2003,
- The Company Accounts Act of June 1996,
- Act on Commercial Enterprises' Presentation of Financial Statements No 448 of 7 June 2001,
Polish entrepreneurs are free to choose the legal form of company. The most important are:
- joint-stock company,
- limited liability company,
- registered partnership ,
- limited partnership ,
- branch of a foreign company,
- representation of a foreign company.
The most common is limited liability company, the branch of a foreign company and joint-stock company.
In Denmark there is an obligation to register all economic operators, regardless of their legal form. The Danish Agency for Enterprises and Commerce is responsible for this and gives companies a number of Central Business Register — CVR. It also keeps records (in the RUT system) of foreign companies providing services in Denmark and posting their employees to that country for a limited period of time. Companies registered by the authority on these principles do not receive CVR number.
In order to set up a business in Denmark, it is necessary to first obtain a residence permit, which is issued by the competent regional authority, when we are able to show the source of revenue enabling us to cover the cost of living in this country.
When running business in Denmark we are under constant surveillance of the local administration with regard, inter alia, to the nature of the legal relationship between the Danish and foreign contractor. Customs - treasury administration (SKAT), in case it is found that activity of foreign subcontracting company is ‘an important and integral part of the activity of the Danish company' may treat mandate for a foreign subcontractor as hiring-out of labour and taxed it entirely in Denmark. These rules may hinder activity in construction, forestry and agriculture. A Polish entrepreneur can ask SKAT for interpretation (payable) of specific cases of cooperation with the Danish partner.
Polish entrepreneurs who consider an expansion on the Danish market can benefit from the support of a special organisation Invest in Denmark, providing detailed information to foreign investors.
Registration for tax purposes should be made via the competent local Office of Customs and Taxes.
Information on setting up business in Denmark can be found at the following links:
- Point of Single Contact — Denmark
- The Polish Embassy in Copenhagen
- Trade and Investment Promotion Section of the Polish Embassy in Copenhagen
- Danish Commerce and Companies Agency
- General Tax and Customs Administration
- The Confederation of Small and Medium-Sized Enterprises
- Danish Trade Council
- Confederation of Danish Industry
- Portal Europa.eu - Denmark