Entrepreneurship

Entrepreneurship

As a newbie with entrepreneurial thinking, it can be challenging in the startup phase.

We will therefore make it easier for you and introduce you to a few basic tools to build your ideas with.

Organisation types

Personally owned companies

For personally owned companies, it does not cost anything to register the company and it only takes a few minutes to set up.

  • A personally owned business has only one owner.
  • Requires Danish CPR number.
  • The owner is personally liable for the company’s debts and other obligations

Click here to create a personally owned company.

  • A partnership (I / S) has a minimum of two owners.
  • Stakeholders can choose to enter into a partnership contract, in which they determine the rules between them.
  • The owners are jointly and severally liable for the company’s debts and other obligations.

Click here to create a personally owned company.

Companies

Establishing a company costs DKK 670 and upwards to register the company through the Danish Business Authority. In addition, it requires the company to have articles of association and a memorandum of association as well as a deposit of a certain amount, which is reserved as capital for the company.

Click here to read more about the founding document for an A/S or ApS.

Companies are obliged to submit an annual report with accounts to the Danish Business Authority, which may also require administrative work and additional costs.

 

The entrepreneurial company form has already been phased out in Denmark as of 2021, while the deadline for converting the company form in Greenland is set for January 5, 2024.

  • An entrepreneurial company (IVS) has one or more owners.
  • The foundation capital is between DKK 1 and DKK 49,999.
  • The company must annually save at least 25% of the company’s profits
  • Must have an executive board
  • A private limited company (ApS) has one or more owners.
  • The foundation capital for an ApS is DKK 50,000.
  • Must have an executive board

Click here to read more about the founding document for an A/S or ApS.

Click here to create a company (it costs from 670 DKK )

  • A public limited company (A/S) has one or more owners.
  • The foundation capital for an A/S is DKK 400,000.
  • Must have a board of directors and an executive board or a supervisory board and an executive board

Click here to read more about the founding document for an A/S or ApS.

Click here to create a company (it costs from 670 DKK )

Finance opportunities

Nalik Ventures offers the following services:

3 x DKK 25,000. for advice (without refund)

Up to DKK 300,000 in support if you come up with a similar amount

DKK 100,000 1 x for export activities

To apply for Nalik Ventures, you must have a CVR number and must complete a satisfactory application on the website www.nalik.gl.

Other finance opportunities

It is a great advantage to have a certain part of the money yourself when you go out and find investors, take out loans, apply for support etc.

 

If you can put money aside from your personal income while working on developing the idea, or if you already have a savings or property, then you are a good chunk ahead.

 

Otherwise, you can arrange fundraising events where you invite other people to support your business by giving you money. For example, you can offer them future shares (B-shares), samples at an exorbitant price, a place on the sponsor list, crowd-funding, or something else … be creative!

Bootstrapping is to avoid all unnecessary expenses. That way, your need for financing will be less, and you can more easily manage the money you earn.

 

The baker’s method is that you start by baking 1 loaf of bread that you sell. For the money you earn, you buy enough flour to bake 2 loaves. This is how you can quietly bake more and more bread.

 

The advantage of this is that you do not have to pay the money back because it was your own at the beginning, you also do not have to hand over part of your profits or share the business with others.

The classic place to go if you want to take a loan.

In addition to lending money, the bank also offers advice that may be relevant.

The bank does not lend money unless they are pretty sure of getting it back, so it is a good idea to listen to the bank.

 

The bank’s blessing of the project is sometimes a requirement to obtain other forms of support.

A business angel is a wealthy businessman who makes money investing in, and developing on, the companies.

 

So they often go actively into the company, to develop it with their skills or network. In addition, they have usually bought a share of the company, which they can then sell when the company has become more valuable. A business angel typically invests 250,000 to 2 million kroner, in addition to its time and competence – usually for a period of 3-5 years.

 

There is no register of business angels in Greenland.

Sweat equity is when people invest labor in the company instead of money, and in that way gain an ownership interest in the company.

 

For some companies, it makes a big difference whether you get the right skills to develop and run the company.

 

It may be necessary for startups where you typically do not have the money to pay people.

 

One must be careful not to give away the ownership shares too cheaply. The effort made in return should preferably have value for the company in the long run.

Factoring means that you sell your invoices to another company which then takes over the balance between the company and the customer.

 

It has the advantage that the company gets money in hand now and here, as well as avoids the hassle and risk of recovering the money.

 

Of course, the invoice buyer does not buy the invoice for the full amount, they do it to make money.

 

“I see that invoice sales are just relevant for new businesses, as this is typically where liquidity is under pressure.” – says Juri Cetti, Co-founder, Dansk Faktura Børs A / S.

Network financing is already quite widespread, and means that through a portal you obtain many small donations / investments which together provide the necessary financing.

 

There are a large number of different models, on different sites. Among the best known are Kickstarter.com and GoFundMe.com.

 

These sites sometimes also help with marketing, but one is of course in competition with many other companies.

“Crowdlending is an easy and attractive way for smaller companies to finance themselves …” – says Nils Thygesen, Partner in Lendino A / S.

Getting your customers to invest in the business is also an option, it’s simply about growing the business with the customers’ money.

 

Among the best-known models are sharing economy, e.g. Airbnb.com, and ‘pay-in-advance’, such as Threadless.com. It may also be that you offer a subscription to your service, and other things.

 

This can be a great way to get started, Bill Gates (Microsoft) and Michael Dell (Dell) both started this way.

 

Michael Dell first bought the parts for people’s PCs, after getting paid for the finished machine, while Bill Gates started programming operating systems for the PC industry, after which he switched to selling the well-known software package.

Tools

As a newbie with entrepreneurial thinking, it can be challenging in the startup phase.

We will therefore make it easier for you and introduce you to a few basic tools to build your ideas with.

Startup guide

We recommend that you first sit down and consider the options and tools below, where you can get recommendations and advice for starting your business.

  • Business plan
  • CVR registration
  • Dialogue with the bank – contact information, online banking, how should the online banking be used?
  • Savings for start-up
  • Company forms: sole proprietorship, I / S, IVS, ApS, A / S,
  • Company which includes the following: Food, beverages, creams, tablets, etc. some special rules are needed.
  • gl – the Danish Veterinary and Food Administration
  • Opening a shop, finding a building, assessing, area allocation, technical environment (Inoqarfik), different rules for them
  • Tax, preparation of business plan and budget – contact information in the cities
  • Greenland Business start-up and audit support
  • Transfer agreement or shareholder contract – inspiration legaldesk.dk, price for it
  • Accounting preparation, invoices, credit memo, etc., annual accounts, accounting law

Templates

Download the different templates we have:

Laws applicable to all companies

There are a number of laws that traders must follow:

Tax legislation: READ MORE

The Accounting Act: READ MORE

The Danish Financial Statements Act: READ MORE

The Companies Act: READ MORE

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