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Bitcoin Company Denmark Advantages

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Bitcoin Company Denmark Advantages

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General Information Denmark is a small country compared to other European countries. However, Denmark has always been heavily involved in trading with other countries, consequently Denmark has developed a favourable regime of Tax Treaties, trade regulations etc

The main business attractions of Denmark are a stable and prosperous society heavily engaged in international trading, a well-educated population and work force, very limited social security charges payable by the employer, flexible employment regulations, a generally positive attitude towards private sector industry and professions, a very efficient infrastructure including extensive use of information technology and the rule of law being administered consistently and without excessive bureaucracy.

Top 5 Reasons for Choosing Denmark

– Extensive number of Tax Treaties

– A natural gateway to the Scandinavian countries and the Baltic area – Copenhagen Airport is the main hub in Northern Europe and Europe’s most efficient airport; a high-quality motorway Doing Business in Denmark 8 network means swift and easy access to all markets in the Northern European region.

– One of the world’s most flexible labour markets (flexicurity)

– One of the most advanced telecommunication infrastructures in Europe

A well-educated population with a high proportion of university graduates and excellent language skills. Denmark offers a very flexible environment for business activities as well as holding companies. When establishing a business in Denmark the procedure is the same for residents as for foreign investors.

Denmark has a reputation as a high-taxation country. However, from a business perspective this is not correct, a comparison with other European jurisdictions shows a more balanced picture when the combined tax rates are calculated. The Danish tax regime is based on direct taxes, rather than indirect taxes. Business entities only have to pay insignificant amounts of DKK 3,000 per employee per year to social schemes etc., the costs are levied on the employee. Consequently, tax rates may seem high at individual level compared to other European countries.

Starting Your Bitcoin Trading Company in Denmark

No need for approval by FSA
No AML compliance required

Not Taxable in Denmark (Partnership)*

Bitcoin is not a taxable event in the eyes of the VAT in EU

 

No FSA Approval needed

FSA has estimated that virtual currency is not subject to the existing financial regulation in Denmark. FSA so in a particular case accepted that a company need no FSA authorization to establish themselves in Denmark in order to engage in BITCOIN exchange.

As a background to the decision, the FSA assessed that the activity neither be considered issuance of electronic money, provision of payment services, currency exchange, receipt of deposits or investment business, and the activity is therefore not subject to financial regulation.

No AML Compliance Required

Problem definition This note deals with, whether virtual currency such as Bitcoin is covered by the act on money laundering in Denmark, including guidance on money laundering published by the Danish Financial Supervisory Authority.

The note does not include the individual risks and opportunities the virtual currency can provide, just as the note does not include fiscal legislation or whether permits or registrations should be applied for. Review has thus only been made in the act on money laundering and in guidance to the act on money laundering.

The Danish Financial Supervisory Authority has estimated that virtual currency is not covered by the existing financial regulation in Denmark. In a specific case the Danish Financial Supervisory Authority has thus approved that a company should not be allowed to establish themselves in this country in order to run a business with exchange of real currency against so-called virtual currency, including Bitcoin.

It is provided in the note that a Danish enterprise is established, and it has thus not been investigated if it is an agent enterprise or foreign enterprise carrying out business activities in Denmark.

 

Article supplied by TBA & Associates

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