Denmark is one of the world's most business-friendly countries. Find out how to proceed if you are planning to set up a business there.
Setting up a business in Denmark is quite an easy task. According to the Doing Business report published in late 2015, Denmark is the world's 3rd most business-friendly country. Indeed, most formalities can be completed online while the company's constitution does not have to be notarized. Moreover, in case you do not have a good command of Danish, relating formalities can be accomplished in English.
Types of companies
There are four main types of companies in Denmark:
- the Anpartselskab which is a limited liability company. At least two partners or associates are required, as well as a minimum capital of DK 80,000, fully subscribed and released. Each partner's liabilities are limited to their amount of contribution.
- the Aktieselskab is a public limited company. At least two partners or associated are required along with a minimum capital of DKK 500,000.
- the Interessentskab is a general partnership. There is no limit as to the number of partners or associates required. Moreover, no minimum capital is involved. The partners' liabilities are several and indefinite.
- the Kommanditselskab is a limited partnership. Two types of partners are involved in this type of company: active partners on one side and passive partners on the other. Liabilities of active partners are unlimited while those of passive partners are limited to their amount of contribution. No minimum capital is required.
Regardless of the type of company you have chosen to set up, procedures are likely to last for at least 10 days provided you comply with all existing conditions and you produce all supporting documents.
Obtaining a NemID
First of all, you are required to apply for a NemID which will allow you to perform several online procedures. A password will also be attributed.
Note that you can apply for a maximum of 3 NemID free of charge for your associated and employees. For each additional NemID, fees of DKK 80 apply. Note that the NemID website is available in English.
You can also apply for the NemID at the nearest Borgerservice to your company's office address. Documents to be produced are your CPR and an identity document such as your passport.
Opening 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 relating procedures in the article Opening a bank account in Denmark.
Registration at the Danish Business Authority
You must then register your company at the Danish Business Authority (erhvervsstyrelsen) which will, in turn, take care of registration at the tax authorities. For registration, you are required to produce a duly filled application form and your company's constitution on the Virk website. A NemID will be required to secure the capital deposit. Note that ownership and allocation of powers to partners must also be specified on this website.
Once this step has been accomplished, you will receive a CVR, that is a company identification number, by mail. The company will be registered automatically at the tax office.
Good to know:
As the Virk website is available in Danish only, you may need the help of a translator or a Danish-speaking person to assist you. You may also drop by in person if you wish.
Health insurance for employees
Finally, you are required to subscribe your employees to a health insurance which should include occupational injuries and illnesses. You are free to choose your insurance company.
DFSME – The Danish Federation of SMEs dfsme.dk
NemID – Application for NemID service.nemid.nu
Erhvervsstyrelsen – Danish Business Authority danishbusinessauthority.dk
Forsikring & Pension – Danish Insurance Association www.forsikringogpension.dk