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Setting up a business in Denmark

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Setting up a business in Denmark is quite easy. According to a Doing Business report published in late 2015, Denmark is the world's 3rd most business-friendly country. Indeed, most formalities can be completed online. Moreover, in the case your Danish is lacking, most of the registration can be done in English.

Types of companies

Here are the main types of companies in Denmark:

  • Anpartsselskab: a private limited liability company set up by at least one shareholder and a minimum share capital of DKK 80,000; shareholders are liable to their amount of their own contribution.
  • Aktieselskab: a public limited company set up by at least one shareholder along with a minimum share capital of DKK 500,000; shares can be offered to the public.
  • Interessentskab: at least two individuals or legal entities in partnership with full liability; must register with the Danish trade register.
  • Kommanditselskab: at least two individuals or legal entities in partnership, one with liability limited to the amount his investment; must register with the Danish trade register.
  • Sole Proprietorship: an individual who sets up a company in Denmark on his own and has full liability.

Procedures

Obtain a NemID

First of all, you must apply for a NemID, a system for making digital signatures and secure logins.

You can order up to three NemIDs free of charge for your employees. Each additional NemID is about DKK 80, or you can buy a NemID business package. The NemID website is available in English.

You can apply for the NemID online or at the nearest Borgerservice. You must show your CPR number and an identity document such as your passport.

Open a bank account

Regardless of the type of company you have chosen to set up, you are required to deposit the minimum capital into a local bank account. Find more information on related procedures in the article "Banking in Denmark".

Register at the Danish Business Authority

You must then register your company at the Danish Business Authority (erhvervsstyrelsen) which will also register you with the tax authorities. For registration, you should fill out an application form at the Virk website. A NemID will be required to secure the capital deposit. Ownership and allocation of powers must also be specified on this website.

Once this has been accomplished, you will receive a company identification number, or CVR, by mail.

 Good to know:

With the exception of the registration form, the Virk website is available in Danish only. You can use this link, or use the search field to look up the “Registration of Non-Danish Company” form. If you need the help of a Danish speaker, your local librarian is trained to help.

Health Insurance for Employees

Finally, you are required to sign your employees up for health insurance that includes occupational injuries and illness. You are free to choose your insurance company.

 Useful links:

The Danish Federation of SMEs
Erhvervsstyrelsen: Danish Business Authority
Forsikring & Pension: Danish Insurance Association

We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
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