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Accounting and auditing in Kalundborg operate under Danish national rules that apply across all municipalities. These rules set out how businesses must keep books, prepare annual financial statements, and when an independent auditor must review or audit those statements. Kalundborg has a diverse business community that includes industrial production, life sciences, energy and circular economy projects, logistics, agriculture, hospitality, and small professional services. While the legal framework is national, local business realities in Kalundborg can add sector specific complexity such as environmental taxes, project grant audits, and supply chain reporting for large industrial customers.
The core legal sources include the Danish Financial Statements Act, the Bookkeeping Act, the Auditors Act, the Companies Act, VAT and tax legislation, and EU rules that Denmark has implemented, such as audit regulation and sustainability reporting obligations for larger companies. The Danish Business Authority oversees filing and compliance for annual reports, the Danish Tax Agency oversees tax and VAT, and the Danish auditor oversight function supervises licensed auditors and audit quality. Most small companies use Danish GAAP, listed groups use IFRS for consolidated financial statements, and smaller entities may opt for assurance services that are less extensive than a full audit when the law permits.
Legal advice can be crucial when your accounting or audit responsibilities intersect with statutory rules, contracts, tax exposure, or regulatory oversight. A lawyer can help you determine the right reporting framework, navigate filing deadlines, mitigate compliance risks, and respond to questions from authorities. In Kalundborg, many businesses work with complex supply chains, public tenders, and environmental or energy regimes, so legal coordination with your accountant and auditor can reduce the chance of costly errors.
Common situations where people seek legal help include choosing a company form and setting up proper bookkeeping systems, deciding whether you qualify to opt out of a statutory audit or should choose an extended review instead, preparing shareholder agreements and board procedures to approve annual reports on time, handling late or deficient filings to avoid forced dissolution, responding to inquiries from the Danish Business Authority or the Tax Agency, structuring cross border transactions and transfer pricing documentation, planning for mergers, carve outs, or restructurings that require special purpose financial statements, negotiating auditor engagement terms, liability clauses, and independence considerations, reviewing grant or subsidy conditions that require project specific audits, and preparing for new sustainability reporting and assurance obligations that may affect you directly or through customer requirements.
The Danish Financial Statements Act sets the content and format of annual reports, the classification of entities by size, consolidation rules, and filing deadlines. Most private companies must have their annual report approved and filed no later than five months after the end of the financial year. Listed companies and public interest entities have tighter timelines and additional transparency requirements. Danish GAAP provides different reporting tiers for micro, small, medium, and large entities. Listed groups must apply IFRS in consolidated financial statements, and other groups may choose IFRS on an elective basis under certain conditions.
The Bookkeeping Act requires timely, reliable bookkeeping, use of compliant digital systems, and retention of records for at least five years. Denmark is rolling out mandatory digital bookkeeping features in phases, including system requirements for transaction capture and documentation. Effective dates have been adjusted, so businesses should check the current guidance from the Danish Business Authority to confirm when specific obligations apply to them.
The Auditors Act governs licensing, ethics, independence, quality control, and oversight of auditors. Assurance options include a full statutory audit, a review, and an extended review. An extended review is a Denmark specific service that builds on a review with additional procedures and can be an alternative for smaller companies that are not legally required to obtain a full audit. Whether an audit is mandatory depends on your size category and whether you exceed thresholds on revenue, balance sheet total, and employees for two consecutive years. Smaller companies may opt out of a statutory audit if they remain below the applicable thresholds and their articles or lenders do not require one.
The Companies Act sets rules for corporate governance, management duties, and the annual general meeting at which the annual report is approved. Late or missing filings can trigger fees, orders to comply, and eventually compulsory dissolution proceedings through the probate court if the company does not remedy the default. Filing is done electronically through the Danish Business Authority with management using Danish digital signatures.
Tax and VAT legislation require accurate returns, documentation of deductions, and proper invoicing. The VAT rate is 25 percent unless an exemption applies. Corporate income tax is national and currently 22 percent. Many Kalundborg businesses must also consider environmental and energy taxes, property taxes, and sector permits that create accounting and reporting implications, including potential auditor attestations for grant compliance or energy refund schemes.
EU developments are increasingly important. The Corporate Sustainability Reporting Directive requires phased in sustainability reporting under ESRS for large companies and listed SMEs, with limited assurance by an independent practitioner moving to reasonable assurance over time. Even if you are not directly in scope, large customers may request data and supplier attestations. Listed entities have electronic reporting requirements for annual financial reports. Public interest entities face stricter auditor independence and rotation rules.
It depends on your size and structure. Danish law sets thresholds for revenue, balance sheet total, and employees. If your company stays below the thresholds for two consecutive years, you may be able to opt out of a statutory audit. Your articles, lender covenants, or grant terms may still require an audit or an extended review. A lawyer can help interpret your specific situation and documentation requirements.
An audit provides reasonable assurance with extensive testing under international auditing standards as adopted in Denmark. A review provides limited assurance based mainly on inquiries and analytical procedures. An extended review is a Denmark specific service that adds targeted procedures to a review and can meet many stakeholder needs when a full audit is not legally required. The right choice depends on legal obligations and stakeholder expectations.
Most companies must have the annual report approved and filed no later than five months after the financial year end. Late filing can result in fees and warnings from the Danish Business Authority. If the delay is not remedied, the company can be sent to compulsory dissolution. If you are late, contact your auditor and a lawyer quickly to manage filings and reduce sanctions.
Yes, Danish rules allow annual reports to be prepared in Danish or English, and in DKK or another currency such as EUR if applied consistently and disclosed. Check whether your stakeholders, including banks and authorities, have language or format preferences before choosing.
You must keep complete and timely records that support every transaction, including invoices, contracts, bank statements, and underlying documentation. The general retention period is at least five years. The new Bookkeeping Act also includes digital system requirements that are being phased in. Confirm the current effective dates that apply to your business and update your systems accordingly.
Often yes. Grant agreements commonly require a project specific audit or agreed upon procedures to confirm eligible costs and compliance. The exact scope is defined by the grantor. Plan early so your bookkeeping captures the evidence an auditor will need, and have a lawyer review the grant terms and reporting obligations.
Large companies and listed SMEs are being phased into mandatory sustainability reporting under ESRS, with independent assurance. Even if you are not in scope, customers may require data from you. Many Kalundborg suppliers already face environmental metrics because of industrial supply chains. Assess whether you are in scope and what data systems and controls you need. Consider legal advice for governance, data protection, and contract clauses.
Respond promptly and factually. Share the notice with your auditor and a lawyer to assess the issues, prepare clarifications or corrections, and manage deadlines. If the authority requires a restatement or refiling, coordinated legal and accounting support helps protect management from allegations of non compliance.
Verify licensing, relevant industry experience, capacity to meet your deadlines, independence from your company, and familiarity with Danish GAAP or IFRS as applicable. Discuss whether you need an audit, extended review, or other assurance. A lawyer can help review engagement terms, liability caps, and independence related services.
Typical issues include late filing of annual reports, inadequate documentation for VAT, lack of segregation of duties in small teams, misunderstanding of revenue recognition in long term projects, missing grant audit trails, and underestimating the effort to implement digital bookkeeping or sustainability data. Early planning with your bookkeeper, auditor, and lawyer reduces risk and saves cost.
Danish Business Authority for annual report rules, filing procedures, size classifications, and bookkeeping guidance. Danish Tax Agency for corporate tax and VAT compliance, invoicing rules, and documentation. The Danish auditor oversight function and professional body FSR Danish Auditors for standards, ethics, and quality control information. Kalundborg Municipality business services for local permits, fees, and guidance on grants or procurement. The Danish Data Protection Authority for GDPR obligations that affect how you store accounting records and personnel data. Industry associations in Region Zealand that offer sector specific templates and compliance updates.
Map your obligations by confirming your size category, whether you are part of a group, and whether an audit is mandatory or optional. Review your bookkeeping system against the current Bookkeeping Act digital requirements and plan upgrades if needed. Align your financial year end timetable so management can approve and file the annual report within the five month window. If you have grants, bank covenants, or customer reporting requests, gather the exact assurance requirements and deadlines. Choose an auditor with the right licensing and sector expertise, and agree on scope, timeline, and fees in an engagement letter. Consult a lawyer to review your articles, shareholder and lender requirements, governance procedures for approving accounts, and any risks identified by your auditor. Keep open communication among management, bookkeepers, the auditor, and legal counsel so issues are resolved early and filings remain compliant.
This guide is for general information only. For advice tailored to your situation in Kalundborg, consult a qualified Danish lawyer and a state authorized public accountant.
