Starting
a company
in Denmark
Alex Farcet
Expat in Denmark presentation
June 2009

Intro
Alex Farcet

Entrepreneur-
ship

Management
consulting
www.knowledgeworks.dk

IT
consultancy
www.insilico.dk

Online
supermarket
www.yellowman.dk

Hobby
www.startupdenmark.dk

Next venture

Headhunting for startups
applicants
candidate
1
applicants
applicants applicants
candidate employee
applicants
2
applicants
applicants
applicants
applicants
candidate
3
Twist: we take the risk with the startup
+Small upfront payment
+12 monthly payments

Company
= startup

Why
Denmark?

The best place in the world
to do business
•Macro-economic stability
•Flexicurity
•Infrastructure
•Political initiative
•Finland, Singapore, Canada, Switzerland
Source: The Economist Intelligence Unit

Startup
environment

_
+
+ Focus - Home market
+ Innovation - Fat cats
+ Resources - Taxes?
+ Positioning

10%
15%
20%
25%
30%
35%
40%
0%
5%
Italy
Spain
Belgium
France
Source: Wikipedia.org
Germany
Bosnia and Herzegovina
Ukraine
Luxembourg
Norway
Sweden
Portugal
Finland
Corporate tax
Iceland
Netherlands
Austria
Denmark
Greece
Switzerland
Belarus
Russia
Estonia
Slovenia
Czech Republic
United Kingdom
Croatia
Georgia
Lithuania
Poland
Slovakia
Hungary
Romania
Latvia
Ireland
Bulgaria
Cyprus
Serbia
Montenegro

Basics

Kapitalselskab Personselskab
• Company liability
• Limited personal • Participant(s) liability
liability • Participant(s) taxable
• Company taxable • Results private
• Results audited &
published Participant(s)
Owners
Source: ”Start din egen virksomhed”, S. Juhl & M. Einshøj

Kapitalselskab Personselskab
Anpartsselskab (ApS) Enkeltmandsvirksomhed
• Private limited company • Personally owned company
• 125K DKK capital contribution • No capital contribution
• Limited liability • Full liability
Aktieselskab (A/S) Interessentskab (I/S)
• Limited company • Partnership company
• 500K DKK capital contribution • No capital contribution
• Limited liability • Joint liability
Others (K/S, Amba)

Kapitalselskab ? Personselskab ?
Reduce personal risk Fast start
• Product liability • No registration
• Creditors & banks (have to register VAT)
• Customers • No upfront capital
• Freedom how to organise
Several owners
• Legal structure
• IPO possible (A/S only) Little admin
• No financial reporting
Costlier
• Financial reporting Risk
• Tighter regulations • Creditors can chase richest
partners
• Partner disagreement

58.679 new companies in 2005
Other A/S
1% 4%
ApS
Enkelt- 32%
mands
56%
I/S
7%
Source: ”Start din egen virksomhed”, S. Juhl & M. Einshøj

Work & residence permit CPR
Establish company CVR
(ApS or A/S)
Register with Skat VAT
(moms)
Open bank account BANK
Hire an accountant DKK
(ApS or A/S)
Source: Copenhagen Capacity (”A step-by-step-guide”)

Registration
Virk
(virkshomhed)
www.virk.dk

www.virk.dk

2-page form
www.virk.dk

Webreg
(web registration)
www.webreg.dk

Employees
Lønseddel
A-skat
AM bidrag
Feriegodtgørelse
’tast selv’
www.skat.dk
Letløn

Danløn
www.danløn.dk

Accounting
E-conomic
www.economic.dk

Moms (VAT)
quartely settlements
Købsmoms
(incoming)
20
Salgsmoms
(outgoing)
100 80

Moms (VAT)
Købsmoms
Salgsmoms (incoming)
(outgoing) 100
20
80

Recap
•Choose company type
•Register Virk.dk
•Manage salaries (Letløn / Danløn / etc.)
•Accountant + system (Excel / E-conomic / etc.)
•Get advice

Information

Skat
Refer to www.100svar.dk (English)

CVR
Central
Virksomheds-
register
Download reports
on 550.000+
companies
www.cvr.dk

Danmarks
statistik
www.dst.dk

Copenhagen
Capacity
www.copcap.dk

100svar
www.100svar.dk

Networking

Expat
network
www.expatindenmark.com

CONNECT
Denmark
Non-profit
’Springboards’
www.connectdenmark.dk

Business case

Venture Cup
Partner with a student
www.venturecup.dk

Funding

Innovations-
miljøer
www. fi.dk/innovation/kommercialisering-og-ivaerksaetteri/innovationsmiljoeer

Funding:
’Innovation
Denmark
2007-2010’
www. en.fi.dk/publications/publications-2007/
innovation-denmark-2007-2010-summary

Viden kupon
www. http://fi.dk/soeg-stoette/saadan-ansoeger-du/
raadet-for-teknologi-og-innovation/videnkupon
/retningslinjer-for-videnkuponer-til-smaa-og-mellemstore

Højteknologi-
fonden
www. hoejteknologifonden.dk/index.php?id=379

Venture
capital

Vækstfonden
www.vf.dk

SEED
Capital
www.seedcapital.dk

Danish
Venture
Capital
Association
www.dvca.dk

Education

Øresund
Entrepreneurship
Academy
www. oeacademy.org

Knowledge-
based
entrepreneur-
ship
John Heebøll
www. entrepreneur.dk DTU / KU

News

Børsen
Vækstdenmark
Tuesdays
(in Danish)
www. borsen.dk/2780

Iværksætteren
(in Danish)
www.ivaerksaetteren.dk/

Morten Lund
www.lundxy.dk

Overview

Startupdenmark
www.startupdenmark.dk

Ideal
scenario

SEED Change
capital the
Connect 2 mio. world!
Springboard
Viden
kupon
Venture 100K
Cup
250K

Go for it !!

Contact me
alex@farcet.dk
+45 24 29 4000
www.linkedin.com/in/alexfarcet

Sources
• Start din egen virksomhed, Susanne Juhl &
Morten Einshøj (Libris, 2006)
• DTU Knowledgebased entrepreneurship course,
John Heebøll + guest lecturers
• The Economist Intelligence Unit, Global Business
Climate Analysis
• Copenhagen Capacity, ”A step-by-step-guide”
• Wikipedia, Corporate taxes