Setting up a company in Denmark
You can set up a company in Denmark from abroad, and most of it happens online: the Danish Business Authority (Erhvervsstyrelsen) registers new businesses through its self-service on Virk, and its guidance sets no special requirements for a founder’s nationality or residence. The catch for many foreign founders is the log-in, not the law. This guide covers the legal forms, the capital rules, the log-in options, registration, fees and timing, and the duties that start once the company exists: beneficial owners, VAT, tax and the annual report.
Set up a company in Denmark in eight steps
- Choose the form. A private limited company (ApS), a public limited company (A/S), a branch (filial) of your existing foreign company, or a sole proprietorship (enkeltmandsvirksomhed).
- Check how you will log in. The self-service needs a Danish CPR number with MitID or an eIDAS-approved foreign eID; a non-Danish company without MitID has a form route instead.
- Draft the founding document and the articles of association, and start the register of owners.
- Pay in the share capital before the registration is filed.
- Register within two weeks of signing through Start virksomhed on Virk, and pay the fee.
- Register the beneficial owners once the company has its CVR number.
- Register for VAT and as an employer where the business needs it.
- Keep the calendar: corporation tax return and annual report, each within six months of the year end.
Choose the legal form: ApS, A/S, branch or sole proprietorship
Business in Denmark, the public portal run with the Danish Business Authority, lists eight business forms, from the limited companies to partnerships, limited partnerships (K/S) and cooperative forms. This guide covers the four that foreign founders ask about.
| Form | Minimum capital | Management | Registration fee |
|---|---|---|---|
| Anpartsselskab (ApS), private limited company | DKK 20,000 | an executive board alone is enough | 670 kr. |
| Aktieselskab (A/S), public limited company | DKK 400,000 | a board of at least 3 persons | 670 kr. |
| Filial, branch of a foreign ApS, A/S or P/S | none of its own | one or more branch managers | 670 kr. |
| Enkeltmandsvirksomhed, sole proprietorship | no company capital | the owner | exempt |
The capital figures come from section 4 of the Danish Companies Act (selskabsloven), which also lets the capital be stated in Danish kroner or in euro. The fees are on the Authority’s fees page.
Private limited company (ApS)
The Authority’s guide says that in an ApS the management may consist of an executive board (direktion) only, so a single founder can be both owner and manager.
Public limited company (A/S)
An A/S needs DKK 400,000 in capital, and its board or supervisory council must have at least 3 persons, so you need three people willing to take a board seat from the start.
Branch of a foreign company (filial)
If your company abroad already exists and only wants a presence in Denmark, a branch avoids a new legal entity. Erhvervsstyrelsen’s branch guidance, last updated on 1 July 2022, describes the branch as an integrated part of the foreign parent company, so it has no share capital of its own. All foreign public limited, partnership and private limited companies have direct access, and companies from outside the EU and EEA do not have to file a reciprocity declaration. The name must contain the parent’s name with the word “filial” added.
The file needs official proof that the parent lawfully exists in its home country, no more than three months old, its statutes and memorandum if the registered office is outside the EU and EEA, and the branch managers’ proxy. The guidance states there is no requirement for a branch manager to live in Denmark.
Sole proprietorship (enkeltmandsvirksomhed)
A sole proprietorship is registered by its owner. The Danish Tax Agency says you register your business at virk.dk and can log on with MitID; the business is automatically assigned a tax account and should have its own NemKonto linked to its CVR number, although the owner’s private NemKonto may be used instead. If you enter no expected profit, the Agency assesses a new sole proprietorship’s profit at between DKK 50,000 and 100,000. The form is exempt from the registration fee.
Capital: how much, and when it must be paid
Section 33 of the Companies Act requires that 25% of the share capital is paid in at all times, and never less than DKK 20,000. For an ApS with the minimum capital, that means the full DKK 20,000. Erhvervsstyrelsen’s guide adds two practical points: partial payment is only possible when the capital is paid in cash, and the registration can only happen once the share capital has been paid in. If you plan to contribute assets instead of cash, ask an adviser what the file must contain.
Log-in: CPR and MitID, a foreign eID, or a form
To use the self-service Start Company, Business in Denmark states that you need a Danish CPR number and either MitID or a foreign eID approved under eIDAS. A foreign eID may be used for a natural person or for a legal person. The contact page and the digital solution are in Danish.
Two further routes exist for businesses based abroad:
- Form 40.112. A non-Danish company without a Danish MitID can register and obtain a CVR number through Registration of Non-Danish Company, Start 40.112, sent by email to the Authority. Attach a passport copy for a sole proprietor, or the home-country registration certificate for a company registered in the EU.
- Form 40.110. For foreign businesses not yet registered in Denmark, form 40.110 on Virk accepts MitID or an EU or EEA eID. A registration in the home country must be documented, and the guide warns that a postal address does not qualify as a business address.
Once a company has a CVR number, Business in Denmark says it must use MitID, set up Digital Post and have a NemKonto. How a foreigner without a CPR number obtains MitID is not set out on the pages this guide relies on, so ask a local adviser to confirm the route for your situation before you fix a timetable.
Documents and registration on Virk
For an ApS or an A/S the Authority’s guide names two core documents: a founding document (stiftelsesdokument) and the articles of association (vedtægter). The company must also keep a register of owners (ejerbog). Templates are available for limited companies, and Business in Denmark notes that they must be in Danish. If you do not read Danish, have the draft translated and checked before you sign.
The formation is registered through Start virksomhed on Virk, and the deadline is strict: registration must happen no later than two weeks after the founding document is signed. Sign only when the capital and the log-in are ready.
Fees and processing times
The Authority’s fee table, updated on 15 October 2026, lists:
- 670 kr. to found an ApS, A/S or P/S, and the same to found a branch of a foreign ApS or A/S;
- 180 kr. for later changes to a registered company or branch;
- free registration and changes of ownership details.
On timing, the Authority’s processing times page gives 24 hours for public and private limited companies in its current status table, because most registrations are checked automatically. Cases that need manual handling (the table names ApS, A/S, P/S, branches and VMBA) take 2 to 4 weeks, and registrations with tax or VAT obligations may take longer at the Tax Agency.
Bank charges and adviser fees come on top and vary; ask for them in writing.
After registration: beneficial owners and the CVR
Every new ApS or A/S has to register its beneficial owners (reelle ejere). The guidance makes management responsible for it. Holding more than 25% of the ownership interests or voting rights is an indication of beneficial ownership, not a fixed test. The duty also applies when the company is owned by a foreign company, and foreign individuals are registered with their passport or national ID details and a copy attached. For companies formed since 23 May 2017 the company is registered first and its beneficial owners afterwards. Changes are registered as soon as possible, and the company should check the information at least once a year. A company that fails to register can be fined, and registering costs nothing.
Know what becomes public, too. The Companies Act provides that the home address of persons registered under it is published in the Central Business Register (CVR), and the Authority may refuse a person without a valid home address.
Set up the tax side: VAT, corporation tax and staff
VAT
The Danish VAT rate is 25% of the taxable amount (momsloven, section 33). A business established in Denmark registers when its sales exceed DKK 50,000 in a period of 12 months, and below that, registration is optional.
Foreign businesses work under different rules. Business in Denmark states that non-Danish companies are not covered by the DKK 50,000 threshold and must register from the day they start activities, with the application arriving at least eight days before taxable activities begin. Its VAT guidance lists the usual triggers: services to private persons in Denmark, certain services to registered Danish companies, and hiring subcontractors for tasks in Denmark.
Some foreign businesses also need a VAT representative. Companies in the EU, the Faroe Islands, Greenland, Iceland or Norway without a fixed establishment may use a non-liable representative. Companies in third countries without a mutual assistance agreement modelled on EU rules must register through a liable representative, a Danish company or individual, and the VAT Act makes that representative jointly liable for the VAT. A business with a fixed Danish establishment does not need one. Firms that handle Danish returns are listed under VAT in Denmark.
Corporation tax
Corporation tax is 22% of taxable income under section 17 of the Corporation Tax Act. The Tax Agency sets the general filing deadline for the return at six months after the end of the income year, for all companies, foundations and associations.
Without a Danish company, the Tax Agency says a non-Danish business is liable to pay tax in Denmark if it has a permanent establishment there. Businesses without one must be registered in RUT, the Register of Foreign Service Providers.
Dividends paid abroad are subject to Danish withholding. The Tax Agency’s dividend page gives 27% for individuals abroad and for most foreign companies, and 0% for parent or group companies covered by the EU directives where the owner’s country exchanges information. Reduced rates under a double taxation agreement depend on the treaty, so check yours with a tax adviser.
Staff and ATP
An employer registers for ATP with the Danish Business Authority no later than 8 days after the first salary payment, then contacts ATP Livslang Pension and reports contributions each quarter. A foreign employee without a Danish civil registration number obtains it from the Tax Agency or from ATP, but not both. Firms offering this work are under payroll in Denmark.
Annual report, audit and late charges
Danish companies file an annual report with the Authority. Under section 138 of the Financial Statements Act (årsregnskabsloven), it must arrive no later than six months after the financial year ends, or four months for class D companies, and no extension is possible. A class B company therefore has six months. A branch files its foreign parent’s audited annual report within the same six months; the branch’s own accounts cannot be filed instead.
Late filing is costly. The Authority’s annual reports guide describes a demand letter to the company’s digital mailbox giving 8 working days to file without a charge. After that, each member of management is charged 500 kr. for the first month started, 2.000 kr. in total for the second and 3.000 kr. in total for the third, with a ceiling of 3.000 kr. per person. If the report still has not arrived within four weeks, the company can be handed to compulsory dissolution.
Audit exemption
A class B company may opt out of the audit if, in two consecutive financial years, it does not exceed two of these figures: a balance sheet total of DKK 4 million, net turnover of DKK 8 million and 12 full-time employees on average (section 135). The guide adds that a company above a balance sheet total of 50 mio. kr. in two consecutive years cannot opt out. Firms that take on statutory audits are listed under audit in Denmark.
Who may sign your accounts
Two titles are protected in Denmark: statsautoriseret revisor (state-authorised public accountant) and registreret revisor (registered accountant). Only approved persons may use them, and the Authority keeps a public register of approved auditors and audit firms. Each entry has a unique registration number starting with MNE, and auditors must be registered before they carry out assurance engagements. The register is part of the CVR search. Confirm any title a profile mentions there.
Moving to Denmark as a founder from outside the EU
Registering a company does not by itself give anyone the right to live or work in Denmark. For founders from outside the EU and EEA, the official scheme is Start-up Denmark. The business idea must be approved by a panel of experts appointed by the Danish Business Authority, and the applicant must be a full or partial owner of the company. The page sets funds at DKK 153,240 (2025 level) for an applicant without family, with higher amounts for a spouse or children, a fee of DKK 3,060 and a normal processing time of 2 months. At most 75 foreign nationals can receive a permit under the scheme each year. For help with the application, see residency and visas in Denmark.
Mistakes foreign founders make
- Planning around a log-in you do not have. Without a CPR number and MitID, or an eIDAS eID, the self-service will not open.
- Signing before the money is ready. Registration needs the capital paid in, and the two-week deadline runs from the signature.
- Assuming a VAT threshold. A foreign company registers from its first taxable activity in Denmark.
- Missing the annual report. The deadline for class B is six months after the year end, and late charges start 8 working days after the demand letter.
Finding help in Denmark
Accountanty lists 20 firms in Denmark: 18 accounting firms and 2 corporate services providers, and all 20 focus on foreign clients. Of these, 10 offer company formation, 19 accounting and tax compliance, and 17 payroll; 18 work in English and 18 in Danish. Half of the firms are in Copenhagen, and 4 are in Aarhus. For bookkeeping and returns after registration, see accounting and tax compliance.
How to choose a provider and compare quotes is covered on our page on company formation in Denmark, and firms used to clients abroad are gathered under accountants for foreign clients in Denmark. Once you know the form and the timetable, describe the project in one free quote request; Accountanty reviews it and forwards it to suitable firms, so you can compare offers before you set up a company in Denmark.