Business in Denmark: How to Start and Register Your Company Step by Step

Denmark is known for its transparency, digital efficiency, and business-friendly environment. If you’re planning to start your own company here, you’ll find the process remarkably simple and fast — especially compared to many other countries. This guide will walk you through every stage of starting and registering a business in Denmark, from planning your idea to getting your official company registration number (CVR). Whether you’re launching a small one-person business or establishing a larger company, the steps below will help you get started the right way.

1. Understand the Danish Business Environment

Before diving into paperwork, it’s worth understanding what makes business Denmark unique.

Denmark consistently ranks among the world’s easiest places to start a business, thanks to:

• A stable and transparent legal system
• Efficient digital public services
• A strong startup culture
• Minimal bureaucracy and corruption

Most business registration and reporting tasks can be completed online — often within a single day.

However, even in this efficient system, success depends on planning and compliance. A clear understanding of your business type, obligations, and goals is the best starting point.

2. Choose Your Business Structure

The first major decision is selecting the type of company you want to register. Denmark offers several legal forms, depending on size, ownership, and liability:

• Sole proprietorship (Enkeltmandsvirksomhed)

• Easiest and fastest to register
• Owned by one person
• No separate legal entity — the owner is personally liable for debts

• Private limited company (Anpartsselskab – ApS)

• Requires a minimum capital of DKK 40,000
• Separate legal entity (limited liability)
• Suitable for growing or investor-backed businesses

• Public limited company (Aktieselskab – A/S)

• Requires DKK 400,000 in capital
• For larger enterprises or companies planning to list shares

• Branch or subsidiary

• Foreign companies can register a branch (filial) or create a Danish subsidiary

Your choice determines not only your tax obligations but also your liability and accounting requirements. Many entrepreneurs start with a sole proprietorship and later convert it into an ApS as their business grows.

3. Prepare a Business Plan and Structure

While not mandatory for registration, having a business plan is extremely helpful. It helps you clarify your:

• Target market and customers
• Financial projections
• Pricing and revenue model
• Required licenses or permits

A clear business plan will also make it easier to apply for loans or attract investors later.

You should also decide:

• Where your business will be located
• Whether you’ll employ staff
• How your bookkeeping and VAT will be handled (most use digital systems such as Dinero, Billy, or e-conomic)

4. Register Online via Virk.dk

Denmark’s business registration process is fully digital. You register your company through the official portal Virk.dk — a one-stop platform for all business-related public services.

Here’s what you’ll need:

• NemID or MitID (digital ID)
• Company name and address
• Chosen business type
• Business purpose (in Danish: branchekode)
• Ownership details

Once submitted, you’ll receive a CVR number — your official company registration number — usually within a few hours.

This number identifies your company in all legal, tax, and financial matters. It’s similar to a business ID or VAT number in other countries.

5. Register for VAT (Moms)

If your business expects to earn more than DKK 50,000 within 12 months, you must register for VAT (moms) with the Danish Tax Agency (SKAT).

You can do this directly on Virk.dk during or after registration. VAT registration enables you to:

• Charge VAT (usually 25%) on sales
• Deduct VAT on business-related purchases
• File VAT returns quarterly via TastSelv Erhverv, the online tax portal

Keep in mind that all VAT and tax records must be stored digitally and traceably — in accordance with the Danish Bookkeeping Act.

6. Open a Business Bank Account

A dedicated business account is required for ApS and A/S companies and strongly recommended for sole proprietors.

To open one, you’ll need:

• Your CVR number
• Identification (passport or residence permit)
• Proof of business activity (such as invoices or contracts)

Once opened, this account should be used exclusively for business transactions — it makes bookkeeping, VAT, and audits much simpler.

7. Set Up Digital Bookkeeping

In Denmark, all businesses must maintain proper accounting records under the Bookkeeping Act (Bogføringsloven). Since 2023, most are required to use approved digital bookkeeping systems.

A good accounting tool will help you:

• Record income and expenses
• Store receipts and invoices digitally
• Calculate VAT automatically
• Generate financial reports and tax filings

Popular Danish systems include Dinero, e-conomic, and Billy, all available in English and easy to integrate with your bank and tax portals.

8. Handle Employees and Payroll (if applicable)

If you plan to hire staff, you must register as an employer through Virk.dk.

You’ll then be responsible for:

• Reporting salaries through the E-income system
• Withholding A-tax (income tax) and AM-bidrag (labor market contribution)
• Paying holiday and pension contributions

Payroll can also be managed through integrated digital systems or outsourced to a payroll provider.

9. Keep Compliance and Deadlines in Mind

Denmark’s tax and reporting system is highly digital but also very strict about deadlines.

You’ll need to:

• File VAT returns quarterly or semi-annually
• Submit your annual report within six months of year-end
• File corporate tax annually via TastSelv Erhverv

All documents and financial data must be stored securely for five years. Using digital tools with built-in reminders will help you stay compliant automatically.

10. Get Professional Advice Early

Even though Denmark makes it easy to start a business, it’s always a good idea to consult a bookkeeper or accountant early on.

A professional can help you:

• Choose the right company form
• Set up your accounting system correctly
• Register for VAT and payroll
• Ensure compliance with Danish law

This small investment at the start can save you time, stress, and money later on.

Starting a business in Denmark is faster and simpler than in most countries — but success still depends on careful preparation and good organization.

The key steps are straightforward: choose your business type, register online via Virk.dk, get your CVR and VAT numbers, and set up proper bookkeeping. Once these basics are in place, you can focus on what really matters — growing your company.

With its transparent laws, digital tools, and supportive ecosystem, Denmark offers everything you need to turn a business idea into a sustainable reality. For entrepreneurs who value efficiency, stability, and trust, there are few better places in the world to start.