Open an SPV Company in Denmark

If you are looking to do business in Denmark, the decision to open an SPV company in Denmark can be a suitable option. A company creates a special purpose vehicle (SPV) for a specific purpose or project. In this sense, an entity can have limited duration and can use it for specific purposes, such as holding certain assets or completing a particular project in Denmark.

Investors considering their options for company formation in Denmark can choose to register a limited liability company in the country and structure it as an SPV if their business needs align with the specific terms under which such a company is created.

SPV characteristics

The special purpose vehicle is, as its name suggests, incorporated for a certain purpose of project. Asset management or risk minimization are frequently linked to SPV’s but they can also be used for investments in real estate or asset securitization. Investors who open an SPV company in Denmark can consider one or all of these options.

One of the main benefits of setting up a special purpose vehicle company is that it can help to limit the liability of the investors and protect their assets. This is true both for corporate investors and individuals. Moreover, large companies can use an SPV for certain purposes, such as streamlining complex projects or investments.

The SPV will incorporate as a Danish company, according to the Companies Act and upon registration with the Danish Business Authority, regardless of its purpose

The steps needed to open an SPV company in Denmark

Our team specializes Danish company formation and is also able to assist investors who wish to structure an SPV for a particular purpose. As in the case of a trading, limited liability company, the investor who opens a special purpose vehicle will need to follow the general company formation steps – an issue with which our team can assist.

To open an SPV in Denmark, investors will start by choosing a suitable business form. In most cases, the limited liability company is this; however, in some instances, a partnership can also structure an SPV.

You must take the following steps to open a limited liability SPV:

  1. Choose the company name: the proposed name needs to be verified for availability and reserved; it cannot infringe the name of an existing, registered legal entity; our team specializing in company registration in Denmark can help you with the name verification;
  2. Prepare the documents: these are the Articles of Association and the Memorandum;
  3. A company under incorporation must deposit the required minimum share capital into its bank account. The exact amount depends on the type of company;
  4. Register the business: this is done with the Danish Business Authority, then once the application file is approved and the business registered, the company receives a register number (CVR).

Our agents can assist you if you want to open a company in Denmark. Whether it is for a specific purpose or used for trading in a certain business sector.  

General compliance and taxation requirements

Part of the requirements the SPV company will need to follow are related to taxes and the payment thereof. Below is a summary of the main taxes in Denmark and a link to our full Danish Corporate Tax Summary.

  • Corporate income tax with a rate of 22%;
  • 25% is typically the standard rate for value-added tax;
  • Social security contributions for the employer between DKK 14,000 and DKK 17,000 each year, per employee;
  • Stamp duty of 0.6% to 1.5% for certain asset transfers (plus additional fees);
  • Other taxes as may apply; These can also be subject to a reduction under an applicable double tax treaty.

Denmark is an attractive location for SPVs because of its favourable business-friendly environment. With the right planning and execution, an SPV can be a valuable tool for achieving specific business goals.

Investors who want to open an SPV in Denmark can contact us for personalized assistance.