Denmark is a country where it is relatively easy to register a company, however most of the resources on the internet oversimplify this task – specially when it comes to limited companies. In this guide we will explain how to register a Danish company step by step.
Corporate entities
There are multiple corporate entities in Denmark, and you have to choose one before registering your company:
- Private limited company (Anpartsselskab, ApS)
- Public limited company (Aktieselskab, A/S)
Entrepreneur company (Iværksætterselskab, IVS)- Limited partnership company (Partnerselskab, P/S)
- Partnership (Interessentskab, I/S)
- Limited partnership (Kommanditselskab, K/S)
- Sole proprietorship (Enkeltmandsvirksomhed, EMV)
- Personal small company (Personligt ejet mindre virksomhed, PMV)
The most popular Danish company type to register is the private limited company, only requiring 40.000 DKK in company capital. If you want to get started right away, head over to LegalDesk to start the incorporation for only 200 EUR.
You can read more about the Danish company types on in this PDF made by the Danish Ministry of Foreign Affairs.
If you choose the private limited company, you do not need to be a Danish resident. This makes it easy for non-Danish people to start doing business in Denmark.
Registration
While it is very easy to start a sole proprietorship or a personal small company in Denmark, you need to be a Danish resident to do this. You do not need to prepare any special documents, and you can register the business within 1 day by going on the Danish Business Registry's website and registering there. You will have to pay 670 DKK in registration fees.
Registering a limited company in Denmark
When it comes to limited companies, it is not so simple to register them. First of all, you must have the required capital to start the company. For private limited companies that is 40.000 DKK, which is not a problem for most people. However, the registration process is very different. The capital must be paid into a Danish business bank account, but you cannot get this account before the company is incorporated (the banks simply refuse to open it for 99% of people). This leaves many Danish people frustrated. How can you pay in the capital if you cannot get the account?
Luckily, there is a way to get around this. If you get your company registrered through an agent, which is typically a lawyer, then you do not need a Danish business bank account to do this. You will need to pay the money into their client account “klientkonto”. Then the agent will confirm that they have the money, and the company can be incorporated. Later, you will need to get a business bank account to get this money paid out. This is also a big problem for many companies, as many banks are very strict with who they choose as their clients. We have written a guide about how to get a Danish business bank account.
Enough with all the background information about the problems. Let us focus on the solutions.
Step 1: Find out what kind of entity you want
Finding out what kind of entity you would like to incorporate is a very important step. Usually, people either go for sole proprietorship or private limited company. The major differences are the capital requirements and how much capital is needed. We usually recommend going for the private limited company known as ApS or anpartsselskab in Denmark.
Time required: Not long.
Step 2: Choose your preferred agent
There are many agents or lawyers that can help you with incorporation in Denmark. However, these charge a lot of money for a very generic service. Therefore, we can recommend LegalDesk where you can get started for only 200 EUR. If you have a very complicated structure, then you might need to get in touch with an actual lawyer.
Time required: Not long.
Step 3: Choose your Danish company name
It is important that you do not choose a name for your company that is too similar to another Danish company, or something that is protected by trademark. Therefore, we suggest that you take a look in the Central Company Registry known as CVR.dk. Here, you can search for all companies.
Danish limited companies are allowed to have multiple trading names or “aliases”, so in principle, you can choose multiple names for your company. There is a limit on how many of these you can get for free.
Time required: Not long.
Step 4: Mandatory information
Your agent will require some information from you and about the company you intend to incorporate. This is usually done through a platform (for example if you choose LegalDesk). Here, they have to confirm your identity, and you also have to answer some questions about how you want to run this company.
Time required: Not long.
Step 5: Pay in the company capital
The agent will provide you with an account number, and you will need to pay in the company capital to this account. This is to confirm that you have the money, and this allows the agent to “certify” it to the Danish Business Registry.
Depending on the amount, you might be asked to provide some documents about where you have the money from. This is usually the case if you want to incorporate a public limited company with a much higher minimum company capital than the private limited company.
Time required: 1 day.
Step 6: Get your business number
In Denmark, companies are identified by their CVR-number. This number is the business number, and while the company itself might not be registered for VAT, some countries call this that VAT-number as well. It is an 8-digit number, and if you want to use it on non-Danish invoices, you will need to add the DK-prefix to it. You will usually get this number the same day or the next day after completing all the steps mentioned on this page.
Time required: 1-2 days.
Step 7: Get a business bank account and get the company capital paid out
Congratulations! You now have a Danish company. It is time to get the company capital paid out and start running the business.
To get the company capital paid out, you need a Danish business bank account. Well, you need it in most cases, as the agents do not want to pay out to non-Danish accounts. Sometimes they will ask you to pay a 200 EUR fee for their so-called “inconvenience”. Therefore, it is a good idea to get a Danish account and as soon as possible, as this step can take time.
Usually, all the fees associated with the incorporation are deduced from the paid in capital. Do not be surprised if you get a smaller amount paid out than 40.000 DKK if you chose the private limited company.
