The cost of founding and running a business depends on the specific business in question.
The capital requirements when establishing a business differ according to the specific business in question. The establishment of a private enterprise requires no equity capital. The establishment of an entrepreneurial company (ÍVF) requires a capital investment ranging between 1 DKK to 49.999 DKK. Similarly, the establishment of a private company (Sp/f) requires a capital investment of 50.000 DKK and a limited company (P/F) demands an investment of 500.000 DKK.
In order to establishment a business, the respective owner has to create a company bank account and apply for a VAT-number, which is provided by TAKS. The VAT-number has to be connected to the bank account.
The establishment of an entrepreneurial, private or limited company (ÍVF, Sp/f or P/F) comes with some further establishment costs.
An entrepreneurial company has a registration fee of 2.500 DKK, as well as 4% of the invested capital.
Likewise, a private company has a registration fee of 2.500 DKK, as well as 4% of the invested capital.
A limited company has a registration fee of 3.500 DKK, as well as 4% of the invested capital.
Since 1 January 2016, TAKS has put in a claim for all businesses to pay an annual broadcasting fee. All companies with wage costs exceeding the amount of 100.000 DKK are required to pay a annual broadcasting fee of 2.000 DKK. For companies whose wage costs exceed 500.000 DKK the fee is 3.500 DKK per year. Wage costs over 1.000.000 DKK bring the broadcasting fee up to 7.000 DKK annually, 3.000.000 DKK to 8.000 DKK, and finally companies with wages costs of 7.000.000 DKK and 10.000.000 DKK are required to pay an annual broadcasting fee of 9.000 DKK and 12.000 DKK respectively. An invoice is sent to each company.
The following lists additional payments/costs in connection to the establishment and the day-to-day management of a business that are to be made out to Skráseting Føroya:
For certified copies of the following documents the costs are:
Transcript for each company 450 DKK
Summary 300 DKK
Registration transcript 100 DKK
Memorandum 200 DKK
Rules and regulations 200 DKK
Plans for merger 125 DKK
Balance sheet / account 200 DKK
Notifications / declarations 125 DKK
Other documents, 10 DKK per page, yet minimum 125 DKK
Changes in registered companies: 1000 DKK
Same % cost for increase in share capital in private or limited companies.
Annual costs for:
Limited companies: 1.200 DKK
Private companies: 700 DKK
Notice of new business foundations: 1.700 DKK
Annual cost: 900 DKK
Supplement of 1/2 % of basic capital, yet a maximum of 25.000 DKK
Notice of new business companies: 1.600 DKK
Changes in registered companies: 300 DKK