F.A.Q.
Frequently Asked Questions

Question:

"I want to establish a company, but what type should I choose?"

Answer:

Whether you should choose one or another type of company depends on several things such as line of business, individual circumstances, risk etc.

Question:

"What does it require for me to establish a company?"

Answer:

As a base rule all you are required is the necessary funds and a corporate account founded in a Danish financial institute.

Question:

"How long does it take from the shipping of the order to the establishment of the company?"

Answer:

In case you complete your order in accordance to Nemreg's standard terms we will deliver you company within 24 hours after receiving your order. In case you need the company right away you can conduct an "express order" in the online formula, in which case, we will have your company ready for you within 1 hour.

Question:

"Do I need a board of directors?"

Answer:

In some company types it is required by law to have a board of directors. There are specific rules about which tasks a board of directors shall manage, and furthermore what rights and privileges the board members have. A limited liability requires a number of at least three members within the board of directors regardless the size of the company. A private limited with less than 35 employees can choose whether they want to establish a board of directors or not. A private limited with more that 35 employees requires a board of directors. It is required that the majority of board members must not be managers of the company.

Question:

"What is a holding company?"

Answer:

A holding company is a company, which owns the stocks and shares of another company.

If you beforehand own the stocks/shares in another company, there can be major advantages interlinked with an ownership of a holding company. Especially if you are in good time and will implement a generational succession or later on wish to sell without any personal taxation.

If the holding company owns at least 15 % (2009: 10%) of the subsidiary company in a least one year, the holding company can withdraw profit tax-free (applies to Danish holding companies). Thus can the capital of the subsidiary company be minimized to what is commercially reasonable. In this way it can therefore be less expensive for instance a son, a business partner or a third party to buy the company.

When selling a subsidiary, one must pay for the profit of the stocks, if one owns these privately. If one has been in possession of the subsidiary for less than 3 years, then it is regarded as capital income (if not, then it is stock profit (28-43%)). If one instead elects to sell the subsidiary after is has been owned by the holding company, then the sale becomes tax-free.

In order to withdraw money from the holding company as profits, a tax of 28-43% must be paid.

Question:

"Is it required that an accountant be attached to the company?"

Answer:

Before April 1st ,2006, it was required by law that PLC and LLC companies have a dedicated accountant attached. Post April 1st ,2006 new regulations are in effect. There are several terms that make it possible to manage a company without a designated accountant. The company must, however, still file in an annual account to the Commerce and Company Agency. Therefore the annual account now longer requires auditing by an accountant.

At least 2 of the following 3 terms must apply to the company for it to be covered by the new regulations:

• The company must have a maximum balance of DKK 1.5 million.
• The company must have a maximum net turnover of DKK 3 million.
• The company must have no more than 12 employees.

Holding companies, including parent corporations may not use the above regulations.