How to Register a Company in Denmark?
Denmark is a country with a very favorable investment climate. Top advantages for investors include ease of doing business and a favorable business climate, high education levels, and a high quality of life, and a good position in Europe that facilitates access to surrounding markets.
Registering a formal company in Denmark is easy and can be done fast, making you ready for business within hours.
The steps for opening a company in Denmark are briefly outlined in the list below:
• Choose a suitable type of legal entity: this is done by observing the size of the future business, its goals, and objectives, along with the available capital for incorporation.
• Choose a unique business name and open a bank account: each company must have a unique business name and a bank account opened with one of the Danish banks.
• Actual company registration: once the company’s constitutive documents are complete, entrepreneurs submit all of them to the Danish Business Authority; each company is assigned a CVR number.
• Tax registration: after it’s registered with the Business Authority, a new company is also registered with the Danish Customs and Tax Administration.
As mentioned earlier, the first step is to choose the type of company you wish to establish.
Type of Business entities in Denmark
A) Limited liability company
The vast majority of companies in Denmark are companies with limited liability – a public limited company (‘A/S’) or a private limited company (‘ApS’).
To establish a company in Denmark the following documents must be drafted:
Memorandum of Association
Articles of Association
All documents can be drafted in English, and no signatures require a notarial certificate.
Furthermore, the share capital must be paid to the company’s bank account or to the client account of the company’s attorney.
Once the relevant founding documents are drafted and signed, and the share capital paid, a Danish company can be registered online with the Danish Business Authority. The company will then receive its unique Company Register Number (CVR) within minutes. The fee for registration is less than € 100, excluding legal fees.
B) Branch or representative office
Certain types of foreign companies are allowed to operate in Denmark through a branch office. A branch office is not a separate legal entity but represents a foreign company in Denmark. A foreign branch must be registered with the Danish Business Authority and registration can be done within a couple of weeks. A branch is subject to Danish corporate taxation.
A foreign company’s activities in Denmark may also be carried out through a representative office provided the activities are of limited nature, e.g. receiving orders (but not invoicing), administrative work, or performance of specific business activity for a limited period of time (e.g. a construction contract). A foreign representative office need not be registered with the Danish Business Authority. A representative office is generally not subject to Danish corporate taxation.
Register your company for VAT and tax
Once your company is registered with the Danish Business Authority, you must register the company for VAT and tax.
When you register a company in Denmark it is subject to Danish tax legislation and the tax payment will depend on the type of company you have established.
WHAT IS SKAT?
‘SKAT’ is the name of the Danish Customs and Tax Administration. SKAT manages and enforces tax laws in Denmark
To get acquainted with the Danish tax system, please refer to SKAT’s guide Tax in Denmark. This guide introduces the Danish tax system to newcomers and non-Danish speakers who are not yet familiar with the system
On SKAT’s website, you can also read more about VAT and tax for new businesses and access general information on working in Denmark
For further consultancy please don't hesitate to contact our company registration experts in Soha Europ Invest