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How to start a business in Denmark

When creating a business in Denmark, there are a few rules that you should pay extra attention to, as different types of companies have different advantages. Read more below for a full overlook on how to start a business in Denmark.

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Before you go on with your business adventure in Denmark, you need to choose which form of company you would like to establish. You can read more about the different types of companies in the sections below.

Limited Liability Company

In Denmark, the most popular type of company is a Limited Liability Company (anpartsselskab or ApS in Danish). This legal form of company is embedded with trust and “seriousness” in national as well as international business communities. This has to do with the amount of capital that the company is founded with. A Limited liability company can only be created with a share capital of minimum 40.000 DKK, which is why investors and banks, among others, are less hesitant when it comes to funding.

Limited liability simply means that the economy within the company is lawfully separated from the owner’s private economy. This way, the owner does not risk private assets, such as houses and cars, if the company goes bankrupt.

Limited Company

A Limited Company (aktieselskab or A/S in Danish) contains many of the same benefits as a Limited Liability Company. But there are a few differences as well, a major one being that in order to establish a Limited Company, you need a share capital of 400.000 DKK. The liability is limited and the company’s owners are therefore only liable for the capital investment in the company. This way, the owners also enjoy a separation between their private economies and the company’s.

Since the deposit amount is fairly large, this company form signals a certain heaviness and degree of solvency which can be an advantage when it comes to suppliers, business partners and customers.

Sole Proprietorship

If you do not seek to invest that much money in your company, you have other options. You can establish a so-called Sole Proprietorship (enkeltmandsvirksomhed in Danish). This type of company requires no capital and is connected to the owners personal finances by law. If creditors should make a claim, the owner’s personal assets are not protected, unlike the case of limited liability companies.

Legal obligations when establishing a business in Denmark

  Share capital Executive committee Annual report
Limited liability company Min. 40.000 DKK Executive committee is required. Board is optional. The executive committee is to approve of the annual report, which must be created no later than five months after the end of the financial year.
Limited company Min. 400.000 DKK Both executive committee and board are required. The executive committee is to approve of the annual report, which must be created no later than five months after the end of the financial year.
Sole proprietorship Not required. The owner is to accede as chief executive officer (CEO). Not required.

 
All companies must be registered at the Danish Business Authority in order to become legally valid. Regardless of which legal form you choose for your business, you need a specific set of documents for the registration. This will be explained more in detail in the sections further down: "Which legal documents are required?" and “How to get a CVR number?”.

Which legal documents are required?

You receive a complete package of all the necessary documents when establishing your company through Legal Desk. This includes the following documents, which are needed for company incorporation.

  Incorporation document Articles of association Shareholders’ register Declaration of company capital
Limited liability company   Yes    Yes  Yes   Yes
Limited company   Yes   Yes   Yes  Yes 
Sole proprietorship   Yes  Yes   -


How to get a CVR number

As mentioned above, every company must be registered at the Danish Business Authority in order to become legally valid. When the company is registered, it receives a unique number which is called a CVR number. CVR numbers are used to identify Danish companies.

Kindly note that a fee of 670 DKK must be paid to the Danish Business Authority, regardless of who is handling your registration.

If you choose to get your legal documents made in collaboration with Legal Desk, you need to fill the online form in which you will be asked the same questions as a lawyer would do. When you have filled out the online form and paid for your documents, you will receive them right away - ready to sign. We will contact you as soon as your company receives its CVR number.

Click on "Start your company now" to create your new company.

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