Good to know
Good to Know
- There is no local-partner or sponsor mandate — foreigners can own 100% of a Danish ApS, and directors/shareholders don't need to be Danish residents.
- The minimum ApS share capital was cut in half, from DKK 40,000 to DKK 20,000, effective 27 February 2025 — some older guides online still quote the outdated DKK 40,000 figure.
- The official CVR registration itself is fast (often 1–5 business days), but for most foreign founders the real delays are getting a MitID digital signature and opening a Danish business bank account, which can take several weeks due to anti-money-laundering checks.
- Company registration (getting a CVR number) is a separate process from getting permission to personally live and work in Denmark — non-EU founders who want to relocate need a residence/work permit (e.g. the Establishment Card or Start-up Denmark scheme) on top of incorporating the company.
- A registered Danish office address is mandatory, but it does not need to be a physical office you occupy — compliant virtual-office/registered-address services are widely used and accepted for this purpose.
- If you don't have Danish residency and a CPR number, a sole proprietorship (Enkeltmandsvirksomhed) is generally not an option for you — most non-resident foreigners incorporate an ApS instead, since it has no residency requirement for owners.
- Denmark's 22% corporate tax rate has been stable since 2016, which makes tax planning relatively predictable compared to jurisdictions with frequent rate changes.
- All corporate tax and VAT filings are digital-only through TastSelv Erhverv — there is no paper filing option, so you'll need MitID or an eIDAS-recognized foreign eID from day one.
- Banks apply extra due-diligence checks on foreign-owned company accounts, so budget extra time (sometimes weeks) to get a Danish business bank account opened.
- VAT registration (25%) kicks in once turnover passes DKK 50,000/year — a low threshold that most freelancers and small businesses will cross quickly.
- There is genuine disagreement across sources on the exact current ApS minimum share capital (some cite DKK 20,000, others DKK 40,000) — confirm the live figure on virk.dk or with Erhvervsstyrelsen before wiring your capital.
Filing And Compliance Obligations
- Corporate Tax Return Deadline
- Annual corporate tax return due 6 months after the end of the company's financial year, filed digitally via TastSelv Erhverv (E-tax for companies); paper filing is not accepted.
- Bank Account
- A Danish company bank account is required to operate; banks apply enhanced due-diligence checks on foreign-owned companies under anti-money-laundering rules, which can add time to setup.
- Group Taxation
- Denmark applies a mandatory joint taxation regime for Danish resident companies and branches under common group control (generally >50% ownership), requiring a consolidated group tax return managed by the parent.
- Audit Exemption
- Small companies that do not exceed two of three thresholds for two consecutive years may opt out of a statutory audit: balance sheet total of DKK 4 million, annual turnover of DKK 8 million, or an average of 12 employees.
- Transfer Pricing
- Related-party/intercompany transactions must follow arm's-length pricing; documentation requirements apply for international transactions, with a de minimis exemption for companies with total controlled transactions below DKK 5 million.
- Advance Tax Payments
- Corporate tax on account (acontoskat) is paid in two installments per year, with statutory due dates of 20 March and 20 November; a third optional voluntary payment is also available.
- Annual Financial Statements
- Annual financial statements must be prepared under Danish accounting standards (Årsregnskabsloven) and filed with the Danish Business Authority (Erhvervsstyrelsen), generally within six to nine months of the fiscal year-end depending on company size.
Audit Exemption Thresholds Converted
- Annual Turnover
- DKK 8,000,000
- Balance Sheet Total
- DKK 4,000,000
Sole Proprietorship Vs Company For Foreigners
- Switching Structures
- Many foreigners start as a sole proprietorship (if resident/CPR-eligible) and later convert to an ApS as revenue, liability exposure, or the need to bring in investors grows; conversion can be done by transforming the existing business or starting a new ApS and transferring assets into it.
As Public Limited Company
- Use Case
- Reserved for larger enterprises, companies planning substantial capital raises, or a future public listing; requires a more formal governance structure with an Executive Board and Board/Supervisory Board.
- Minimum Share Capital
- DKK 400,000
Pmv Micro Business Option
- Restrictions
- Cannot register for VAT and cannot hire employees; still requires a Danish CPR number and residency, so it is not generally usable by non-resident foreigners.
- Turnover Cap
- DKK 50,000
- Description
- Personligt ejet Mindre Virksomhed (PMV) is a simplified micro-business form for hobby-scale or very small ventures.
Aps Private Limited Company
- Taxation
- Profits taxed at the flat 22% corporate rate. Owners can then pay themselves a salary (deductible for the company, taxed as personal income) or dividends (subject to dividend tax, statutory 27%, often reduced by treaty).
- Legal Status
- Separate legal entity (Anpartsselskab); owners' liability is limited to invested capital.
- Minimum Share Capital
- DKK 40,000
- Eligibility For Foreigners
- No Danish residency or CPR requirement for shareholders or directors — a foreigner can own and register an ApS while abroad using a foreign eID recognized under eIDAS. A registered Danish business address is mandatory, and at least one board member must be reachable for regulatory correspondence. In practice, non-resident foreigners setting up a business in Denmark almost always use an ApS rather than a sole proprietorship because of this CPR/residency barrier.
Incorporation Fees Typical Range
- Low
- DKK 1,000
- High
- DKK 10,000
- Note
- Range covers the Central Business Register (CVR) registration fee plus optional professional/accountant assistance; excludes the share capital itself.
Enkeltmandsvirksomhed Sole Proprietorship
- VAT
- VAT registration (25%) is mandatory once annual turnover exceeds DKK 50,000; returns are typically filed quarterly.
- Taxation
- Business profit is taxed as personal income (not corporate tax): an 8% labour market contribution (AM-bidrag) applies first, followed by progressive municipal and state income tax, with a combined marginal rate that can exceed roughly 50% at higher income levels.
- Bookkeeping
- Must comply with the Danish Bookkeeping Act, retaining invoices and records for at least five years; business profit is reported as part of the owner's personal annual tax return.
- Legal Status
- No separate legal entity from the owner; the owner retains all profits and bears unlimited personal liability for business debts.
- Minimum Capital
- None required.
- Eligibility For Foreigners
- Requires a Danish CPR number and legal residency to register. EU/EEA citizens can register if resident; non-EU citizens need a valid Danish residence and work permit. Non-resident foreigners without a CPR generally cannot open this structure.
Common Entity Types
ApS (Anpartsselskab) — Private Limited Company
- Description
- The standard vehicle recommended for most foreign founders and subsidiaries.
A/S (Aktieselskab) — Public Limited Company
- Description
- Used for larger enterprises, regulated financial activity, or plans to raise public capital.
Filial (Branch Office)
- Description
- An extension of an existing foreign company rather than a new legal entity; no separate share capital required, but the foreign parent remains fully liable for the branch's obligations.
Enkeltmandsvirksomhed (Sole Proprietorship)
- Description
- No minimum capital, simplest option for solo low-risk activity, but requires a CPR number/residence in practice.
Typical Cost Breakdown
Government Registration Fee (Virk.dk / Erhvervsstyrelsen)
- Government Registration Fee (Virk.Dk / Erhvervsstyrelsen)
- DKK 670
DKK
Typical Incorporation/legal Assistance Fee (Optional But Common)
- Typical Incorporation/Legal Assistance Fee (Optional But Common)
- DKK 2,000
Varies by provider; not a fixed government fee.
- Item
- Virtual/registered office address service (annual or monthly, optional if no physical premises)
Corporate Tax Overview
- VAT Standard Rate Percent
- 25
- Dividend Withholding Tax Percent Statutory
- 27
- Standard Corporate Income Tax Rate Percent
- 22
- Double Tax Treaty Network
- Extensive network covering 70+ countries, reducing double-taxation risk for foreign owners repatriating profits.
- VAT Registration Threshold
- DKK 50,000
- Notes
- The standard corporate income tax rate in Denmark is 22%, applied to net profit, and has remained stable since 2016. Financial companies (banks, insurance, investment firms) face a higher rate of 26% as of 2024, and oil/gas upstream activity is taxed under a more aggressive regime with an additional surtax mechanism at higher oil prices.
- Dividend Withholding Tax Note
- 27% statutory withholding on dividends, commonly reduced under Denmark's tax treaty network (70+ countries) or EU directives such as the Parent-Subsidiary Directive.
Foreign Ownership And Permanent Establishment
- FDI Screening
- Denmark maintains an open investment policy with no comprehensive FDI screening for most sectors; foreign investors can generally acquire or found Danish companies at any ownership percentage without government approval.
- Branch Office Option
- A Filial (branch) lets a foreign company operate in Denmark without incorporating a separate subsidiary; it is taxed at 22% on Danish-source income once it has a permanent establishment, requires no separate share capital, but exposes the entire foreign parent's balance sheet to Danish creditors (unlimited parent liability).
- Permanent Establishment Rule
- A foreign company only becomes taxable in Denmark on Danish-sourced profit if its activity constitutes a permanent establishment; for construction/installation projects this is typically triggered after roughly 6–12 months of activity (from day one if no double-tax treaty exists between Denmark and the home country).
Official Links
- Regulator
- Danish Business Authority (Erhvervsstyrelsen)
- Business Registration Portal
- https://virk.dk
- Official Guidance For Establishing A Business
- https://businessindenmark.virk.dk/guidance/services-contact-point/Establish-a-business-in-Denmark/
Jurisdiction Note
Company registration in Denmark is a national (not city-specific) process administered centrally, so these steps apply the same whether the company is based in Copenhagen or elsewhere in Denmark.
Realistic Timeline
- Bank Account Opening
- Often the real bottleneck for foreign-owned entities: anti-money-laundering/KYC checks can take roughly 2–6 weeks, sometimes longer, before a business account is opened.
- Mitid Or Digital ID Setup
- Obtaining a Danish MitID typically requires a CPR number/residence, which can take time for a non-resident founder; many foreign founders instead engage a Danish lawyer with power of attorney to sign and file on their behalf.
- Overall Practical Estimate
- A founder with all documents, capital, and a Danish bank relationship ready can realistically have a CVR number within about 1–2 weeks; total time to a fully operational company (working bank account, VAT number, payroll set up) is commonly several weeks to a couple of months for foreign owners.
- Non EU Founder Immigration Track
- If a non-EU/EEA founder intends to live in Denmark to run the business, a separate residence/work permit (e.g. the Establishment Card entrepreneur route or the Start-up Denmark programme) is required in addition to company registration; this immigration process runs on its own timeline of roughly a few weeks up to several months depending on the scheme.
- Cvr Issuance After Complete Filing
- Typically 1–5 business days once documents and capital deposit are in order; complex or incomplete applications can take up to ~14 business days.
Core Registration Steps
Core Registration Steps
- Choose entity type (ApS is the default recommendation for most foreign founders).
- Check and reserve a unique company name via the Danish Business Registry search on Virk.dk (name must include 'ApS'/'anpartsselskab' for that entity type).
- Secure a registered office address in Denmark (a real street address, not a P.O. box; virtual office/registered-address providers are commonly used and accepted).
- Draft the memorandum/incorporation deed and articles of association, covering founders' details, share allocation, and management structure.
- Open a temporary company-in-formation bank account and deposit the minimum share capital; obtain the bank's confirmation letter (a Danish law firm's client account is sometimes used as a faster first step).
- Collect ID/AML documentation (passports, proof of address, beneficial-owner information) for all founders, directors and beneficial owners; foreign documents may need apostille and/or certified translation.
- Submit the registration application online via Virk.dk (the Danish Business Authority/Erhvervsstyrelsen digital portal), attaching the articles, bank confirmation, and identification documents.
- Sign and file digitally using MitID (Denmark's digital ID) or an eIDAS-approved foreign eID; founders without MitID commonly authorize a Danish lawyer/agent with power of attorney to file on their behalf.
- Receive the CVR number (Central Business Register number) once the Danish Business Authority approves the filing — this is the company's official identifier for all tax and public purposes.
- Register for VAT with SKAT (via skat.dk/Virk.dk) if expected annual turnover exceeds DKK 50,000, and register as an employer if hiring staff.
- Register beneficial owners (any individual owning/controlling more than 25% of shares or voting rights) in the Danish Business Authority's public UBO register, as required under Danish anti-money-laundering law.
Local Partner Or Sponsor Mandate
- Details
- There is no local-partner, local-shareholder, or sponsor requirement to incorporate in Denmark. Multiple current sources confirm foreign nationals and foreign entities may own 100% of a Danish ApS or A/S, and directors/shareholders are not required to be Danish residents.
- Required
- No
AI-generated estimateData refreshed July 2026
Sources cited for this category
These are the sources cited in this business permits & incorporation for foreigners research for this city. Individual figures may not each trace to one of them.
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Data last updated July 2026 · Verify anything important.