The 4 most common company structures in Denmark are: Sole Proprietorship, Limited Liability Company, Branch Office and Registration as a Foreign Company. When deciding between company structures, consider your level of experience, how confident you are in your business plan, how much money you will invest, your risk tolerance, the types of products or services you sell, and the types of clients and contracts you work with.

Transfer Pricing rules in Denmark have changed many times over the last couple of years. It is now mandatory for larger companies in Denmark to submit Transfer Pricing documentation each year. It was required to prepare the Transfer Pricing documentation in the past, but it was only submitted within 60 days upon request from the tax office. Transfer Pricing should now always be submitted 60 days after the tax return deadline when exceeding certain thresholds. You can read more here: https://www.daniaaccounting.com/slider/transfer-pricing-rules-in-denmark-for-2023/

Audits of annual reports are not mandatory for most companies in Denmark. In general, larger limited liability companies need to be audited, and smaller companies do not need to be audited. The difference between "smaller" and "larger" is defined by thresholds for revenue, amount of employees and assets. However, new audit rules will be introduced in 2023. You can read more here: https://www.daniaaccounting.com/slider/audit-requirements-in-denmark-for-annual-reports-in-2023/

A budget isn't just an expense-cutting tool; it can help you grow your business by providing you with the structure you need to make smart financial decisions. By creating a cash flow budget, you can get an accurate snapshot of where your business stands financially at any given time and use that information to make adjustments accordingly. You can read more here: https://www.daniaaccounting.com/slider/cash-flow-budget-and-why-having-one-matters-for-your-business/

When a limited liability company (in Denmark, most often ApS or A/S) fails to submit the annual report on time, the Danish Business Authority will request the Danish Maritime and Commercial High Court to dissolve the company after a while. We call this a compulsory dissolution. Sometimes, it is possible to reassume a company faced with a compulsory dissolution when specific requirements are met. You can read more here: https://www.daniaaccounting.com/slider/how-can-you-reassume-a-company-faced-with-a-compulsory-dissolution/

A dividend is part of the profit paid out to a company's shareholders. Capital companies like ApS and A/S can distribute dividends after the first fiscal year ends and the annual report is approved at the annual general meeting. Extraordinary dividends are distributed during the year, not at the annual general meeting.

In this podcast, we describe the costs involved in incorporating a new limited liability company in Denmark (ApS). You can read more on our website: https://www.daniaaccounting.com/slider/price-incorporating-new-aps/

If you are the director and or shareholder of a Danish limited liability company – either an ApS or A/S – you will need to approve the annual report for the company once per year at the annual general meeting. A document that we call "minutes" needs to be drafted and signed at the annual general meeting. You can read more about minutes on our website and also download a template for your minutes that can be used at the annual general meeting: https://www.daniaaccounting.com/slider/how-to-prepare-minutes-from-your-annual-general-meeting/

In general, just because you issue an invoice through an ApS for your consulting services, that does not necessarily make it a company income. In some circumstances, you might have just put yourself at risk of double or even triple taxation if you are considered the beneficiary and not the ApS. Read more here: https://www.daniaaccounting.com/slider/can-a-consultant-invoice-through-an-ltd-aps-and-why-it-can-get-very-expensive-in-tax-if-you-get-it-wrong/ #tax #consulting #smallbusiness #risk #accounting