4. Sole proprietorship
• Personal risk – personally responsible
• No required startup capital
• Formality-free
• Easy and free to set up
• No audit requirement
• Most businesses start like this
5. Partnership
• Team of owners
• Personal and solidaric risk – all for
one, one for all.
• Easy and – almost - free to set up.
• No capital requirements.
• Few regulations.
6. Limited Liability Company
• Limited risk. Your personal fortune is
protected.
• Startup equity capital required.
• Costs: Attorney and Accountant
• More formalities – contracts, audit,
public access to annual accounts.
• Easier to sell.
7. Corporation
• Limited risk. Your personal fortune is
protected.
• Startup equity capital required.
• Costs: Attorney and Accountant
• More formalities – contracts, audit,
public access to annual accounts, board
required.
• Easier to sell – transferable shares.
8. Holding Structure
My Business Holding
A/S
MyCompanyBuilding MyNewExperiment
MyFirst Business A/S
ApS ApS
9. Why holding structure?
• Tax issues
• Encapsulating risk and protecting
assets
• Partnerships - ”partly partners”
• Preparing exit
• Preparing for next generation
10. Registration – in DK
…fill out 2 pages, send it in,
and you have a business…
11. Registration – in DK
• Webreg.dk
• Download 2 pages registration form
• Wait for you CVR-number (1-2 weeks)
• Businesses with expectet turnover of
more than DKK 50.000 per year must
register for VAT (some exeptions for
specific trades).
12. Authorisations
…in general you can just
register and get going, but
there are exeptions…
13. Autohorisations
• Buildings – Municipalitys Technical
Administration
• Waste, noise etc. – Municipalitys
Environmental Control
• Food products – Local Food Inspection
• Serving alcohol – Chief of Police
• Etc.
15. Partnership Agreement
• Company purpose • Management & Authority
• Name of partners • Decisionmaking
• Capital contribution • Ownership transfer
• Ownership - % • Confidentiality
• Liability
• Non-compete agreement
• Division of profit/loss
• Books and records
• Work obligations
• Conflict resolution
• Salary
• Etc.
• Illness, death etc.
16. Employees
…the administrative job as an
entrepreneur is easy until…
17. Employee Rights
• Employment Contract
• Insurance - permanent occupational injury
• Salaried Empolyees Act (typically non
production workers)
• Holidays with Pay Act
• Dismissal – written and fair
• Employers Administrative Tasks
– Registration, social security, tax
18. Employment Law
• Working Environment Act
• Holidays With Pay Act
• Equal Treatment Act
• Child Care Leave Act
• Sickness Benefits Act
