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Danish version sole proprietorship business with a CVR number. There is simply no such thing as a patent or certificate of individual activity in Denmark. This type of company pays moms i.e. VAT 25% and B-Skat for 10 months per calendar year. There is no interest whatsoever but there are rates that are calculated based on the amount of profit. Enkeltmandvirksomhed can have employees. With enkeltmandvirksomhed you are responsible by all of your assets and in the event of bankruptcy all the debt of the company goes to the owner of the business i.e. for a private individual.

The company does not submit an annual report, but an annual private declaration must include a detailed declaration, including accounting data. All company profits are the owner’s salary.

IVS- iværkseterselskab

A relatively new type of Danish company with an initial capital of 1kr.

This is a company with a CVR number. In other words – Entrepreneurial Limited Company. 

IVS is committed each year set aside part of the profit to accumulate 40,000 capital.

Transforming a company from IVS to ApS requires an authorized auditor and costs a minimum of 15,000-20,000.

It is no longer possible to establish an IVS company and by latest 15. April 2021 it has to be converted to ApS.

VAT, Annual reports and insurances

Tax Year period usually is from January 1st to December 31st. Or 1.5m when the company was established mid-year.

If quarterly moms (VAT) are selected, they automatically change to semi-annual moms (VAT) when they are regularly paid to Skat.

IVS and ApS companies are required to submit an annual report half a year after the end of the accounting year. Income tax, VAT taxes are mandatory to declare and pay for all companies in Denmark. Of course, if the company has no profit then they are not paid.

Both companies can have employees as well as employees to take business trips. 

Holding- Non-financial enterprise, not engaged in any activity. It is intended for the establishment and administration of other companies – the company wallet. 

With an IVS or APS, owners can pay dividends. They are paid after tax, including income tax. If the amount of the dividend is less than 50,000, you do not need to pay tax, but if higher, you need to pay income tax.

When it comes to insurance, it is advisable to have ansvarsforsikring- when client assets are insured.

As soon as this company has one employee, the mandatory employee insurance “arbejdsskadeforsikring” has to be paid. This insurance is mandatory, fines range from 5,000kr, and so every month until the insurance contract is concluded. 

APV

As soon as the company has an employee APV is mandatory, according to Arbejdstilsynet – Work Safety requirements.

APV is a job description based on employee responses to specially formulated employee questionnaires. APV should be updated at every new project. Basically, it should be a work safety tracker, and every employee should sign that they are familiar with it. There also should be included first aid course certificates, data sheet of chemical materials and instructions for use, safety requirements. In the case of a construction or cleaning company using a lift gate, ladders, etc., there has to be instructions provided to each employee of how to use a specific device, tool or machine.