Buy a Shelf Company in Denmark

Investors seeking to buy a shelf company in Denmark can do so by obtaining an already existing legal entity that can be adjusted according to their business requirements. As opposed to forming a company from scratch, purchasing a shelf company can save a lot of time and will also ensure that you have a history as a corporation. We help our clients in this process, from buying the company to complying to all the legal aspects imposed by the Danish authorities.

What is a Danish shelf company?

The main difference between a newly-registered company and a ready-made company is exactly this: the shelf company is already registered and awaiting to be bought. Shelf companies in Denmark are usually registered as private limited liability companies, but public companies can also be put at the disposal of clients. Ready-made companies come with tax and value added tax numbers, which is one of the most important advantages of this type of structures.

What services can you offer for purchasing a shelf company in Denmark?

Our specialists offer full legal support in all issues related to purchasing a shelf company in Denmark. Our list of services includes the following:

• selection of a shelf company;
• due diligence;
• preparation of documentation on the share purchase;
• help in transferring the property right;
• registration of updated information about the company;
• company renaming and registration of new addresses and management of the company, if necessary;
• help in solving tax and VAT issues.

What are the advantages of buying a Danish shelf company?

Both options have their advantages with the mention that purchasing a Danish shelf company has certain notable benefits:

• Longevity: the simple fact that the company was incorporated will allow it to be presented as a legal entity with longevity, that was formed a number of years before; compared to a newly formed company, this can have advantages;
• Credibility: a direct result of longevity can also be credibility towards clients and other business partners;
• Faster operations: investors who acquire a shelf company are generally able to start trading much faster, compared to having to register a new company;
• Attractiveness: all in all, the shelf company, a legal entity that has been registered in Denmark for a number of years, can attract more investors.

What needs to be verified prior to buying a Danish shelf company?

Prior to acquiring the Danish shelf company, it is necessary to check the records and liability of the company. It includes:

• History of ownership and management;
• Financial statements and accounts;
• Tax and VAT situation;
• Liabilities and contracts;
• Information about the company registered;
• Disputes or other liabilities.

What are the steps for acquiring a shelf company in Denmark?

The process of buying a Danish shelf company is quite an elaborate one, involving some specific steps such as:

• Choosing the company: selection of the appropriate shelf company according to its structure, age, and registrations;
• Due diligence: verification of the corporate history, financial position, tax issues and contracts of the company;
• Transfer of shares: signing the agreement concerning the transfer of shares to the new shareholders;
• Changing the ownership: registration of the new ownership of the company (both legal and beneficial);
• Changing the company data: change in the name of the company, its address, managers, etc;
• Starting up: after all the necessary changes have been made, the new owners can utilize the company.

What are the steps to follow when buying an existing company in Denmark?

• Name: the new owners may wish to change the company’s name, however, in this case they will need to check if the newly proposed name is available for use in Denmark;
• Registered address: the registered address is changed upon purchase, however, it will need to remain in a Danish city of choice, most commonly in Copenhagen; using a virtual office is also possible;
• Secondary address: the registered address can be the same as the office address, however, in most cases, they will not be the same; the actual office location from which the company runs its activities can be a secondary location; investors may add additional headquarters, as needed;
• Articles of Association.

What are the main requirements for shelf companies in Denmark?

Once the company ownership transfer is complete, the new company owners will be the ones who will be liable for the company’s activities, debts and the relationship with its creditors, clients and business partners in Denmark. This also means that they will need to observe the local rules for corporate taxation, as the company was and remains registered in the country.

What are the legal aspects of shelf companies in Denmark?

Take into consideration two main aspects:

• Tax liabilities: could be represented by unpaid taxes or VAT from previous operations of the company. In order to protect from tax fraud or money laundering, authorities like Danish Business Authority (Erhvervsstyrelsen) or Danish Tax Agency (Skattestyrelsen) may conduct monitoring operations of the shelf company in Denmark. After purchasing the Danish shelf company, the director becomes responsible of previous irregularities;
• Due diligence in Denmark: this process represents additional checks of the company’s past operations in order to buy it with less risks involved. Usually, the due diligence checks are made upon legal obligations, contracts and tax compliance issues. All the information regarding the shelf company in Denmark must be registered within the Danish Business Authority.

For information on the requirements and prices related to buying a shelf company, please contact us. We can also assist investors in registering a new company in Denmark.