Establishment and Development of a Private Enterprise

Søren Kim Henkel

Student thesis: Master thesis

Abstract

Economic growth in Danish society depends on Danish companies constantly creating new ideas and translating these ideas into production and sales. The society therefore needs new entrepreneurs to provide the Danish business community with dynamics, innovation through the establishment and development of new private enterprises. Politically, there is great interest in supporting entrepreneurs in Denmark, but it can often be a challenge for entrepreneurs to comply with the complicated Danish tax legislation that sets the framework for establishing and developing a private enterprise. This thesis will focus on the legislation for establishing a private enterprise and the legislation for transforming a private enterprise into a company. An entrepreneur has the opportunity to establish a private enterprise in the context of several tax laws each giving the entrepreneur a number of possibilities, but also a number of limitations and disadvantages. Similarly, entrepreneurs have more opportunities to develop their private enterprise by transforming the private enterprise into a company. It may be difficult for an entrepreneur to review the choices to be made in relation with the establishment and conversion of a private enterprise, but it may be appropriate to consider the link between a decision to establish a private enterprise with the later decision to transform the enterprise into a company. For most entrepreneurs, it will therefore make sense to involve a tax advisor in preparation to a decision to establish or transform a private enterprise. The thesis will analyze three fictitious enterprises that differ with regard to the number of assets, as well as revenue and profit for the year. Finally, based on the analyses conducted, the thesis will determine the important parameters that a tax advisor must emphasize for the entrepreneur before making a decision on establishment of a private enterprise and a conversion into a company.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2018
Number of pages123