Entrepreneurs
Denmark is widely recognised as one of Europe’s most efficient and
transparent places to start a company. With strong digital infrastructure,
predictable regulations and a competitive business climate, many entrepreneurs
choose Denmark as a strategic gateway to the Nordic region and the EU single
market. However, even though the process is streamlined, understanding the
correct steps and legal requirements is crucial before you register a business
in Denmark.
This guide explains how the
registration system works, what documents are required, and what foreign
founders need to keep in mind to ensure full compliance.
Why Denmark Attracts New Businesses
The Danish business
environment is built on digitalisation, low
bureaucracy and trust-based institutions. Almost every administrative task,
including registering a company, handling taxes or submitting annual reports,
is completed online.
Key advantages include:
- Fast
online incorporation — most companies are
registered within hours. - Strong
legal certainty — clear rules, transparent
governance and reliable public institutions. - Access
to the EU single market — particularly important for
international trading companies. - Innovation-driven
economy — excellent conditions for
tech, life science, logistics and green industries.
For entrepreneurs looking
for stability and efficiency, Denmark offers an exceptionally friendly
landscape.
Choosing the Right Structure Before Registration
Before you register
a business in Denmark,
you must determine which legal form best suits your operational model, risk
level and capital resources.
Private Limited Company (ApS)
The most popular choice for
both local and foreign founders. It requires 40,000 DKK in
paid-in share capital and provides limited liability. ApS
companies are flexible, trustworthy and suitable for most commercial
activities.
Public Limited Company (A/S)
Intended for larger
enterprises requiring higher investment, with a minimum share capital of 400,000
DKK. It includes more advanced corporate governance structures.
Sole Proprietorship (Enkeltmandsvirksomhed)
A simple business type with
no minimum capital. However, the owner has full personal liability,
which may not suit high-risk sectors.
Branch of a Foreign Company
International companies can
register a Danish branch to operate locally without establishing a separate
legal entity. The branch is still subject to Danish reporting rules.
Subsidiary
A subsidiary — usually in
the form of an ApS — gives foreign businesses a fully
independent Danish company with its own liability and accounting.
Choosing the right
structure influences taxation, governance and the complexity of reporting
obligations.
Digital Requirements: CPR, MitID
and CVR
Denmark’s digital system
requires secure identification for business owners:
- CPR
number — personal identification
number for residents; non-residents can obtain a tax number instead. - MitID — digital login for signing
documents and accessing government services. - CVR
number — assigned after registration;
it is the official business identification number in Denmark.
Foreign founders who do not
yet have MitID typically use accountants, corporate
service providers or authorised agents to complete
the digital steps.
Preparing the Necessary Documents
To register a business in
Denmark efficiently, you must prepare:
- Articles of Association
- Memorandum of Association
- Documentation
of share capital (for ApS/A/S) - Ownership
structure and personal details of founders - Registered business address in Denmark
- Chosen
company name, which must be unique and
compliant with naming regulations
A financial statement from
a Danish bank or an accountant is required to confirm the share capital
deposit.
Registering the Business on Virk.dk
Denmark’s official company
registration system — Virk.dk — handles all applications
electronically.
The registration process
includes:
- Logging
in using MitID or an authorised
representative - Selecting the company
type - Uploading formation
documents - Providing owner
and management information - Submitting share
capital documentation - Paying any
applicable registration
fees - Receiving
the CVR number, usually on the same day
Once completed, the company
appears in the Central Business Register and is officially recognised
for commercial activity.
VAT, Corporate Tax and Accounting Duties
After the initial
registration, companies must determine whether they need to register for VAT
(Moms). Any business expecting annual revenue above 50,000 DKK
must register. The VAT rate is 25%, and companies file returns
either monthly, quarterly or twice per year.
Corporate tax in Denmark is
22%, and all limited companies must submit:
- Annual financial
statements - Beneficial ownership
information - Accurate bookkeeping
records
Depending on company size,
an audit may also be required. Many new entrepreneurs choose to work with a
Danish accountant to avoid compliance issues.
Opening a Danish Business Bank Account
The banking process can be
more time-consuming due to strict anti-money-laundering rules. Banks request:
- Identity documents
- Detailed ownership
structure - Business activity description
- Proof
of real presence and future operations
Although opening the
account may take several weeks, it is essential for daily operations, salary
payments and VAT reporting.
Hiring Employees and Employer Registration
If your newly registered
Danish company plans to hire staff, additional steps apply:
- Registering as an
employer - Withholding
and reporting taxes via the eIncome system - Paying mandatory
labour market contributions - Complying
with collective agreements, holiday rules and safety standards
Denmark offers a highly
educated workforce, but operational costs are high, so financial planning is
key.
Ongoing Responsibilities After Registration
Successfully registering a
business in Denmark is only the first step. Companies
must also:
- Keep all
documents updated - Follow
bookkeeping and annual reporting rules - File
taxes and VAT on time - Inform authorities
about ownership changes - Ensure
compliance with GDPR and employee rights
Failure to meet obligations
can result in penalties or removal from the registry.
Registering a business in
Denmark is a remarkably efficient and transparent process thanks to the
country’s digital infrastructure. With the right legal form, complete
documentation and a clear understanding of tax and regulatory obligations,
entrepreneurs can build a strong foundation for long-term success. Denmark’s
stable economy, access to European markets and pro-innovation environment make
it an attractive location for international founders seeking reliability and
growth opportunities.