Denmark needs new enterprises that can contribute to society with income and work places. This is why it is always exciting to see new citizens with a desire to start their own business in Denmark. However, if you wish to commence own business activities, there are a set of rules with which you need to acquaint yourself.
Your business must be registered on virk.dk no later than 8 days prior to your launch of the enterprise in order that the relevant authorities receive information about the type of business activities you are about to commence. This way you will be in a better position with respect to ensuring that you follow the rules and that you will be paying the taxes and duties you are required to.
As a business owner, you have a number of obligations. You must pay tax of the business' profits, pay VAT of the products you sell, and – for certain products – you must be responsible for ensuring that required duties have been paid.
You must, for instance, remember:
You have an obligation to keep accounts such as e.g. recognising income and expenses; and you must pay tax, VAT and duties.
If you have employees, you must keep account of the employees' wages, PAYE tax (A-skat), labour market contributions, pension schemes, holiday accounts, etc. And you are responsible for making sure that the money is paid to the right authorities.
Many of your expenses in relation to commencing and operating your own enterprise are tax deductible. This way, your tax and VAT expenses will be reduced. You can get VAT relief on goods purchased for your VAT-registered business. In certain cases, you can also get a refund for paid duties. Also for this reason, is it necessary to be disciplined about keeping your accounts.
Many business owners buy assistance from an accountant.
If you operate your own business, you must file a so-called extended tax return in order to file a tax return on the results of your business.