Entrepreneur dictionary

Entrepreneur dictionary

A Aktieselskab (A / S) is an independent legal entity, the owner is therefore not personally liable for the company. There is a capital requirement of DKK 400,000 (2021), which can be paid into the company in the form of cash or other values.
Liability : You are not personally liable for the company and are therefore only liable for the capital you have deposited, however, be aware that banks often require you to be personally liable for any loans.
Capital requirements : Kr. 400,000 (2021)
Taxation : 22% corporation tax (2021) of the profit is paid. Profit after tax can remain in the company, be transferred to a Holding Company or deducted as salary or dividends.
Annual accounts : An annual report must be prepared, which must be submitted to the Danish Business Authority and published.

An Anpartsselskab (ApS) is an independent legal entity, the owner is therefore not personally liable for the company. There is a capital requirement of DKK 40,000 (2021), which can be paid into the company in the form of cash or other values.
Liability : You are not personally liable for the company and are therefore only liable for the capital you have deposited, however, be aware that banks often require you to be personally liable for any loans.
Capital requirements : Kr. 40,000 (2021)
Taxation : 22% corporation tax (2021) of the profit is paid. Profit after tax can remain in the company, be transferred to a Holding Company or deducted as salary or dividends.
Annual accounts : An annual report must be prepared, which must be submitted to the Danish Business Authority and published.

The company's operating budget shows what revenue the company expects and what expenses are expected.

The operating budget can look like this:

Turnover
- Variable costs
= Gross margin (Gross profit)

-Fixed costs
Profit before interest and depreciation

- Interest
Depreciation
Net profit

You can find the Danish Business Authority's template for an operating budget here.

A sole proprietorship is a personally owned business - can only have one owner.
Liability : You are personally liable, with everything you own, no distinction is made between personal and corporate obligations.
Capital requirements : There are no capital requirements
Taxation : You can be taxed in 3 different ways: The personal tax rules , The corporate scheme or The return on capital scheme . click and read more in our entrepreneur dictionary.
Annual accounts : Sole proprietorships are not required to prepare and submit financial statements, the company's result (income - expenses) must be stated in your personal tax return. You should always post income and expenses and make a tax return.

An start-up budget shows what costs are expected to be in connection with starting up your business, what it takes to be able to start selling.

For example, the acquisition of a company telephone must be stated in the establishment budget, but the subscription itself belongs to the operating budget.

You can find the Danish Business Authority's template for an establishment budget here.

You need to make a business plan, not only because the bank will ask for one when you need to set up a bank account, but also because it is a guide that will help you decide on everything you need to deal with when starting a business.

A business plan is dynamic and describes your business idea. your objectives, as well as internal and external conditions.

There are many good free templates on the internet, including with The Danish Business Authority

A Partnership (I / S) is a personally owned company and can be equated with a sole proprietorship, but has 2 or more owners. Partnership (I / S) is usually personally owned, but can also be owned by a company ApS or A / S.
Liability : The owners are personally, jointly and severally liable with everything they own, no distinction is made between personal and company obligations. You are therefore also liable for obligations that your partner may have entered into.
Capital requirements : There are no capital requirements
Taxation : You can be taxed in 3 different ways: The personal tax rules , The corporate scheme or The return on capital scheme . click and read more in our entrepreneur dictionary.
Annual accounts : Sole proprietorships are not required to prepare and submit financial statements, the company's result (income - expenses) must be stated in your personal tax return. You should always post income and expenses and make a tax return.

Entrepreneur company is like an ApS, but the deposit is (was) only DKK 1, -

It is no longer possible to set up an IVS and the companies that are already registered as IVS must be re-registered with ApS, no later than 15 October 2021, IVS companies that do not re-register in time will be forcibly dissolved.

On 17 December 2020, the Danish Parliament passed that it was no longer necessary to have an auditor's statement, which has made it somewhat cheaper to re-register his company.

Personally owned companies can be taxed according to 3 different forms of taxation, the corporate tax scheme (VSO), the capital return scheme and personal taxation.

The return on capital scheme :

The return on capital scheme provides some advantages in relation to the corporate scheme, for example you do not have an accounting obligation, and there is no requirement for a sharp separation between private and corporate finances.

You can calculate a return on capital that can be deducted from your personal income and thus save you money in AM contributions and taxes.

The return on capital scheme is often used when renting out apartments.

Companies are different, so always ask an accountant which form of taxation you should use.

Read more about the capital return scheme at skat.

A term for self-employed businesses that neither produce nor sell goods, but which offer various types of services.

For example, it could be:
Hairdresser, accountant, lawyer, doctor, physiotherapists, architects, dentists, counselors, day care workers and more.

The liquidity budget shows how much money is in your account.

It is not abnormal that you will have to give e.g. current month +30 day in credit, ie. that work you have done in January is only paid until March 1, it can present some challenges if you have had wage costs that must be paid already on February 1, therefore it is incredibly important to know when the money comes in and goes out By the company.

In that case, the liquidity works against you and this is unfortunately where you see many companies suffering liquidity death, so make sure you have a good overview of when you get money into your account and when your expenses have to be paid.

You can find the Danish Business Authority's template for a liquidity budget here.

PMV is very similar to a one-man business, but must have a maximum turnover of DKK 50,000 within a 12-month period. There is no obligation for the company to register.
It is not allowed to import or export goods outside the EU.

Personally owned companies can be taxed according to 3 different forms of taxation, the corporate tax scheme (VSO), the capital return scheme and personal taxation.

Personal taxation :

With the personal tax rules, you pay tax on your income as a private individual

Clarify your company's tax situation on skat.dk

A company is an independent legal entity and must therefore have a person who can enter into agreements on its behalf, this person is subscribed for the company.

There may well be several subscribers in a company, e.g. a director and a chairman of the board, this will typically be stated in the company's articles of association.

Dividends can be paid to a company's owners if there has been a profit on the company's latest accounts.
Ordinary dividends are paid in connection with the annual general meeting.

Dividends can only be paid if there has been a profit.

Dividends may not be paid if it is estimated that it may harm the company or its creditors.

The payment of dividends must be approved by the company's executive board or board of directors.

Personally owned companies can be taxed according to 3 different forms of taxation, the corporate tax scheme (VSO), the capital return scheme and personal taxation.

The corporate tax scheme :

The corporate scheme can give you some of the tax benefits of the capital companies. If you use the company scheme, you must distinguish between private consumption and the money you save in the company in the accounts.

The money you withdraw from the company for your own consumption must be taxed according to the general personal tax rules. However, the money you save in the company, you only have to pay 22% in tax on. When you withdraw from the savings, you must pay ordinary income tax less the 22% you have already paid.

Another benefit of the corporate scheme is that you can deduct the company's interest expenses from your personal income. This means you pay less in AM contributions.

Ask an accountant which form of taxation is best for your business.

Clarify your company's tax situation on skat.dk

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