Setting up in Denmark Setting up in Denmark Table of contents Page 1. Denmark and the Danes ............................................................................................................................3 1.1. Geography ..........................................................................................................................................................3 1.2. Population............................................................................................................................................................4 1.3. Education ............................................................................................................................................................5 1.4. The social safety net ....................................................................................................................................5 1.5. High taxes high standard of living ....................................................................................................5 1.6. Greenland and the Faroe Islands ........................................................................................................6 2. Economy ..............................................................................................................................................................8 2.1. Infrastructure ..................................................................................................................................................8 2.2. Industry and non-agricultural trade ................................................................................................. 9 2.3. Building and construction .....................................................................................................................10 2.4. Agruculture and fishery .........................................................................................................................10 2.5. Service sector................................................................................................................................................11 3. Financial markets ......................................................................................................................................12 3.1. Internationalisation ...................................................................................................................................12 3.2. The central bank ..........................................................................................................................................12 3.3. Banks ..................................................................................................................................................................12 3.4. Insurance companies ..............................................................................................................................13 3.5. The mortgage credit system ..............................................................................................................13 3.6. The Copenhagen Stock Exchange ....................................................................................................13 4. The labour market ......................................................................................................................................14 4.1. The Danish labour force .........................................................................................................................14 4.2. High levels of taining and education ...............................................................................................14 4.3. The organisations .......................................................................................................................................15 4.4. Wage and working cnditions................................................................................................................16 4.5. Conclusion ......................................................................................................................................................17 5. Forms of business enterprise ............................................................................................................18 5.1. Public limited company (aktieelskab) ............................................................................................19 5.1.1. Formation procedure ..............................................................................................................................19 5.1.2. Minimum capital .........................................................................................................................................19 5.1.3. Shares and shareholders ....................................................................................................................20 5.1.4. The Danish Securities Centre ...........................................................................................................21 5.1.5. Management ................................................................................................................................................21 5.2. Branch office (filial) ...................................................................................................................................22 5.3. Private limited company (anpartsselskab) ...............................................................................23 5.4. Partnerships and the like ......................................................................................................................23 5.4.1. Partnership ....................................................................................................................................................24 5.4.2. Limited partnership ..................................................................................................................................24 5.4.3. Limited partnership company (Kommandit-aktieselskab) .............................................24 5.4.4. Co-operative society ................................................................................................................................24 5.4.5. Sole proprietorship ...................................................................................................................................25 DANSKEBANK SETTING UP IN DENMARK APRIL 2009 5.5. Commercial foundation ..........................................................................................................................25 5.5.1. Instrument of foundation .......................................................................................................................25 5.5.2. Capital.................................................................................................................................................................26 5.5.3. Management .................................................................................................................................................26 5.6. European companies ..............................................................................................................................26 5.7. Bookkeeping and annual acounts ....................................................................................................26 5.8. Auditing and accounting legal requirements ........................................................................27 5.9. Establishment costs .................................................................................................................................27 5.10. Registration fees and annual fees ...................................................................................................27 6. Taxation ...........................................................................................................................................................28 6.1. Income tax ......................................................................................................................................................28 6.1.1. Companies .....................................................................................................................................................28 6.1.2. Individuals ........................................................................................................................................................29 6.2. Some deductions ........................................................................................................................................30 6.3. VAT and excise duties .............................................................................................................................31 6.4. Special oil and gas tax .............................................................................................................................31 6.5. Tax rules for shipping companies ...................................................................................................32 7. Useful sources of information.............................................................................................................34 8. Danske Bank in brief .................................................................................................................................38 8.1. Banking, insurance, mortgage finance and asset management....................................38 8.2 Customer base .............................................................................................................................................38