Annual reports and auditor in Denmark

In Denmark, the owner of a company has the right to de-register the audit after the company's incorporation by entering the appropriate information in the incorporation document (at fravælge revisionspligt).

[infografika] For ApS and IVS limited liability companies, two of the three required recommendations must be met for their audit not to be mandatory:
1. The average number of full-time employees at the company in a given fiscal year should be 12.
2. The balance sheet total (total debts or assets) should be a maximum of DKK 4 million.
3. Net turnover should not be more than DKK 8 million per year excluding VAT.

Holding companies hold a controlling amount of shares in other companies (usually 20% ownership). For this legal form of Danish business, in order to avoid an audit, you also have to meet the same conditions as for limited liability companies, but (turnover of DKK 8 million, 12 full-time employees, balance of DKK 4 million) you have to combine the values, i.e. add up the employed employees, turnover and balance, of all the companies in which you have shares.

If a limited liability company was established many years ago with an annual audit, it can be deregistered at the annual shareholders' meeting, establishing that from the following year the company's audit will not be necessary. To deregister the company's audit, you need to do so during the shareholders' meeting:

- Record the relevant information in the minutes,
- Agree on an amendment to the Articles of Association, removing from them everything that concerns the audit,
- At the end of the year, when completing the company's annual report, note that the conditions for not being audited have been approved.

In contrast, in the case of Danish sole proprietorships, no audit has been required since 2006.