How to Set Up a Business in Denmark

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Companies that establish a business in Denmark get the chance to have the easy plug and play registrations and they can be ready to start operating in a few hours. Doing so is cost- and tax-efficient.

There are several key advantages that they can have from the experience of setting up a business in Denmark. To begin with, there is a quick, informal and cost-efficient registration procedure. The online registration procedure enables them to be ready to do business within a few hours. The good thing is that there are no resident requirements for the management and there are also no notarial deeds. Language requirements are flexible so some documents may be registered in English.

By extension dividends can be distributed on an interim basis. Danish company law is in conformity with current EU legislation. It is tax-efficient to start your business in Denmark compared to other Nordic countries.

Here are steps on how to set up a business in Denmark:

Get professional advice

It would be good for you to consult an accountant or a lawyer before you get your business off the ground. You can seek their advice as to which business model would be the right one for you. There are several business models such as sole proprietorship, limited partnership, general partnership, private limited company, public limited company and limited liability cooperative. You will also need to insure the business and its workers. So, talking to a good insurance broker is highly recommended. They can give you the best insurance options that your company needs.

Know the types of company which can be established in Denmark

There are four types of companies that can be established in Denmark. These are the A/S, a limited liability company, ApS, a small to medium-sized limited liability company, a company where a branch can be set up to do business defined by the objectives of a head office, and one where a Representative Office is often set up as part of the process of establishing a business in Denmark.

The A/S, a limited liability company is the only company that can be listed on the Copenhagen Stock Exchange. This is for those who are interested in setting up medium to large companies. The minimum initial capital investment needed is DKK 500,000, at least 25 percent of which must be paid when the company is formed.

The ApS, a small to medium-sized limited liability company, minimum investment needed is DKK 80,000, at least 25 percent of which must be paid initially.

The company in which a branch can be set up to do business defined by the objectives of a head office has a liability that lies solely with the head office and there is no minimum investment required.

A company wherein the Representative Office is often set up as part of the process of establishing a business in Denmark is the only type of company that is not required to register with the Danish Commerce and Companies Agency. There is no initial capital requirement and all liability is held by the foreign organisation creating the office. All companies pay corporate income tax at a rate of 25 percent in Denmark.

Establish a company instead of a branch

business in denmark

It is much easier to establish a company than a branch because most of the registration procedure is done online.  Apart from that, the registration takes a short time so the company can be up and running in just a matter of hours. On the other hand, to register a branch, you will have to spend more money and the procedure can take weeks. Another thing is that according to the law, a foreign branch of a Danish company is not subject to tax in Denmark.

Get enough financial resources

You can raise funds in several ways for your business. To avoid any problems with misunderstandings or illegalities, it would be wise for you to consult an expert while you are undergoing negotiations with investors. When you have sufficient funds, you should keep track of your costs and spending by using a financial management system.

Register your business

The next step you should take is to register your business. You may do so by obtaining a business signature and registering your business with the Companies Agency and Danish Commercial using the Webreg system. This will capture all the updated information about the business.

You can just submit the Articles of Association and Memorandum of Association. This registration process is usually done online at This should be done eight days before any dutiable activities. Then when everything is in order, you will be given a receipt that indicates that you have registered. You will get your Central Business Registration number or CVR number. This number is your business identification number which will be used when you correspond with public authorities and the likes.

Business in Denmark : Hire people !

You can legally hire employees from European Economic Area countries (EEA). They don’t need to have any work permits. As for those who are not citizens of EEA, they need to have residence permits and work permits to be able to work in your company.

If the company is privately owned, only one director is needed to run the business. However, if it is publicly limited business, you will need at least three board members and one managing director. At least half of the board members should have the EEA citizenship.  The board of directors can act as official representatives. They are also in charge of managing and organizing the business.

Get insurance for your employees

In case of accidents or illnesses, your employees must be insured. The terms of the insurance will depend on your company of course. The insurance company that you choose should complete a form and register the insurance policy with the Danish Business Authority (DBA). This should also include motor insurance if you have a vehicle in the new business.

Regardless of the type of business you would like to go into, it is useful to understand what is involved in starting a business in Denmark.  That way, you can be prepared to deal with any situation you may face and be able to have financial safeguards for the overall betterment of your business.

Documents That Require Translation

For the business documents which must be translated you have to get the services of a professional translation agency. Tomedes and other large translation agencies offer Danish translation Services to handle that. Some of the business documents that need translation include but are not limited to:

  • Marketing And Advertising Documents
  • Legal Documents
  • Technical Documents
  • Refund And Exchange Policies
  • Newsletters
  • Patents

The requirements may vary but it is best for you to get the translation of these documents ready.

Business in Denmark, why Denmark is Great for Entrepreneurs ?

great entrepreneur business in denmark

Denmark is considered to beone of the best countries in Europe for entrepreneurs. A new study initiated by leading researchers in entrepreneurship from the George Mason University in the U.S. has confirmed this that the country is indeed an ideal nation to start a business in.

One of the reasons is that it’s free to start a business in Denmark. You only need to show proof that you have capital and money in the bank and registration can take only six days to complete. Some of the other important reasons are that the country promotes strong legal rights for borrowers and lenders, has laws that make it easy for employers to hire and terminate workers and has some of the lowest costs for importing and exporting products.

In the new comprehensive research that covered 71 countries, Denmark was on top in business performance edging out the U.S. which is considered to be the land of opportunity. The study looked into statistics, framework conditions and the experiences of business people. Additionally, the researchers revealed that the creation of new jobs in Denmark  is largely attributed to the growth of small companies and not necessarily the big ones.

The Minister of Economic and Business Affairs Brian Mikkelsen takes pride in this latest achievement of Denmark that helps people start their own business. However, he pointed out that they are still in the process of improving access to capital particularly for small businesses. 

Currently, Denmark has nearly 25 million enterprises made up of mostly small businesses. Majority of these businesses have only a few employees numbering less than 10. The country is also home to many international and multinational companies. 

In 2008 and 2009, Denmark ranked 5th in the World Bank’s yearly “Doing Business” report. The survey covered 181 countries and studied the regulatory climate of countries for entrepreneurs.

Business in Denmark : Denmark Attracts More Professionals

Life in Denmark is just incomparable to other progressive countries. There is something unique about this country that makes it quite attractive to professionals from other parts of the world especially those with high educational attainment. Latest reports have it that an increasing number of well schooled foreigners, if they had their way, want to begin their professional career in Denmark land.

Denmark business

These people magnetized to Denmark country can’t be blamed. This Nordic country has made remarkable achievements in different fields including the corporate world, science and technology and education. The success of Denmark has continued unabated and it is no surprise why many foreigners wish to be a part of it.

The Ministry of Science, Technology and Innovation, in its yearly report, reveals that the number of people outside Denmark who have expressed interest in working in the country have doubled in the last two years. Educated foreigners with a bachelor or master’s degree have been applying to work in Denmark through the so-called green card arrangement.

A branch of the Ministry of Science, CIRIUS, assessed close to 2,100 applications of foreign educations in 2008. This figure alone is more than double the number achieved in 2006. This increase in applications is attributed to the government’s move to attract highly educated people. It also proves one thing – Denmark’s popularity among the schooled foreigners.

The CIRIUS branch of the Ministry of Science provides information on education and training in Denmark. It handles the assessment of applications of foreigners in different areas such as education, employment, admission to an unemployment fund and pay graded as a graduate in the Danish public sector.

Education and employment aside, Denmark is an attraction in its entirety. Whether it’s travel and leisure, work or business, study or research, the country is capable of drawing people whatever time of the year.

Denmark Wants To Cut Tax Rate

tax business in denmark

Denmark is planning to cut its corporate tax rate to 22% from the current level of 28% in a bid to increase its competitiveness.

The Tax Commission charged with reforming the Danish tax system has also roposed that taxes on labour be cut significantly. It says that in the longer term this tax reform could encourage Danes to work more, train more and generally improve their skills base. The goal is to make Denmark more competitive in the battle to attract good jobs and companies.

In the short term, the reform could provide a boost to lacklustre domes-tic consumption – perhaps making the current crisis less deep.


  1. Hello, can you provide me a detailed report on the economy, the business culture and import-export trade verified figures. Please provide me the same as I am looking to start my Trade company in denmark-copenhagen in the month of April 2020. Looking forward.

    • Hi Vivart. Your project sounds great! Here are some content which can interest you: Invest in Denmark. If you want to know more about Danes mindset on entrepreneurship, read this article (click here). You can find famous export produce in Denmark here. Also make sure you know the basics on moving to Denmark, with the CPR Number for example (article here) or having a work permit (click here). I hope this will help you in your project! If you don’t find all the informations you’re looking for, you should probably have a look on market investigations. Keep us in touch 😉

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