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Open an SPV Company in Denmark

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 special purpose vehicle (SPV) company is a type of company that is created for a specific purpose, or a specific project. In this sense, it can have limited duration, and its use can be limited, for example to holding specific assets, or for completing a specific project in Denmark.

Investors who are 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 are in line 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. Frequently, its use is linked to asset management or risk minimization, however, it can also be used for investments in real estate, or for the purpose of 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 (other companies), and individuals. Moreover, large companies can use an SPV for certain purposes, such as streamlining complex projects or investments.

Regardless of the purpose for which the SPV is set up, it will be incorporated as a Danish company, according to the Companies Act, and by registration with the Danish Business Authority.

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, this is the limited liability company, however, in some instances, an SPV can also be structured as a partnership.

The steps listed below are the main ones required to open a limited liability company:

  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. Pay the minimum capital: this is deposited into the company’s bank account and it varies according to the type of company being incorporated;
  4. Register the business: this is done with the Danish Business Authority, and once the application file is approved and the business registered, the company receives a register number (CVR).

Our agents assist you if you want to open a company in Denmark, whether it will be for a specific purpose as needed for an SPV 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. For investors who wish to open an SPV in Denmark, as well as for those interested in company formation in general, we list some of the most important taxes for companies below:

  • Corporate income tax with a rate of 22%;
  • Value-added tax with a standard rate of 25% (some types of goods and services can be 0 rated);
  • 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 favorable 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.