Danish SMBA companies

No capital requirements, limited liability and start-up friendly

SMBA companies, incorporated in Denmark, is today the most attractive type of business for smaller companies. SMBA stands for companies with limited liability and are taxed in the same way as traditional limited liability companies.  You can set up a Danish SMBA company with all the benefits of a traditional limited liability company, but without the disadvantages.

1. There is no capital requirement
2. Shareholder loans are allowed
3. You can draw out dividends several times a year
4. No accounting obligation to the Danish tax authorities
5. Anonymity
6. The company is only liable to pay tax in Denmark if the director resides in Denmark
7. No requirement for audited accounts
8. No need for convening General Meetings

There are no complicated laws governing this type of business, which makes the possibility of tailor-making the company to suit your needs much greater, compared with traditional limited liability companies. Normally the Articles of Association are formulated so that the company becomes a cross between an association and a limited liability company, which yields the greatest benefits.

Until mid 2006 this type of company was only used by larger businesses and public companies. An SMBA was not widely used by smaller companies due to the fact that these companies previously were unable to enter into tax-free restructuring.

But this has now been changed.

EMEA provides three different product packages; the most comprehensive of which contains the following services:

1. Formation of an SMBA
2. Preparing Articles of Association
3. Instalment of elected director
4. Application for VAT registration and its submission
5. Set up with or without VAT
6. Possibility for contact to EMEA’s network of business partners
7. Assistance with bookkeeping
8. Handling of documents
9. Online accountancy system including administration
10. Full address service
11. Access to EMEA’s legal service, tax and corporate consultancy

You are welcome to contact us for informal advice, if you would like more information about SMBA companies or how a SMBA company could potentially form a part of an advantageous company holding construction.

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