Company Formation in Denmark

Denmark cut the minimum share capital for a private limited company from DKK 40,000 to DKK 20,000 on 27 February 2025. For clean digital filings Erhvervsstyrelsen now issues the CVR number on the same day the file goes in. The corporate tax rate is 22%, flat since 2016. The default vehicle for almost every foreign-owned business is the anpartsselskab (ApS), the Danish private limited company and the local equivalent of an LLC. There is no residency requirement for directors or shareholders, and under the EU Parent-Subsidiary Directive dividends out of a Danish holding company to an EU parent flow at 0% withholding. The practical bottleneck is banking: Danish retail banks reject 30 to 50% of non-resident applications on AML grounds, and the real formation timeline is set by the bank, not the registry.

We form Danish ApS companies end to end: name reservation, articles of association, share-capital confirmation, Virk.dk filing, CVR number, VAT and PAYE registration with Skattestyrelsen, digital bookkeeping onboarding, and bank account introduction. Fixed price, dedicated manager, government fees included.

Quick facts	Value
Corporate Income Tax (selskabsskat)	22% flat
Local company form	ApS (anpartsselskab), equivalent of an LLC / private limited company
VAT (moms) — standard	25% (single rate, no reduced bands)
VAT registration threshold	DKK 50,000 (≈€6,700) per 12 months
Minimum share capital (ApS)	DKK 20,000 (≈€2,680) — reduced Feb 2025
Minimum share capital (A/S)	DKK 400,000; 25% paid up at incorporation
Minimum directors / shareholders	1 director, 1 shareholder (can be the same person, can be foreign)
Residency requirement	None
Standard formation time	Same day for CVR (digital) / 2–6 weeks end-to-end including banking
Government fees	Included in our packages
Language of filings	Danish
Currency	Danish krone (DKK)

Why Form a Company in Denmark

Denmark is one of the highest-ranked jurisdictions in the world for starting and running a business. Three reasons foreign founders pick it.

Not yet settled on Denmark? Our guide to company formation in Europe compares the main EU jurisdictions, and the all 27 EU states comparison lines up capital, tax rates and formation times in one table.

Low entry cost for a Nordic EU member. DKK 20,000 of paid-up capital is roughly €2,680 — less than the €25,000 GmbH minimum in Germany and a fraction of Sweden's SEK 25,000 AB plus bank-certificate friction. The 22% headline corporate tax is below Germany's combined 30%, Belgium's 25%, and the Netherlands' 25.8%. Denmark is not a tax haven, but for a real European operating entity the number sits squarely in the middle of the EU pack.

A mature holding-company regime. Gains on subsidiary shares (≥10% holding) are exempt. Dividends from qualifying subsidiaries are exempt. Dividends out to an EU/EEA parent drop to 0% withholding under the Parent-Subsidiary Directive. Dividends to a treaty-country parent typically drop to 0–15% depending on the treaty. The headline 27% outbound withholding looks punitive, but it applies mostly where the beneficial-ownership test fails — and the Danish Supreme Court has been strict on that point since the 2019 beneficial ownership cases.

Digital infrastructure that actually works. Virk.dk, MitID, CVR, and NemHandel make formation, tax registration, and e-invoicing a handful of digital steps rather than a paper trail. The CVR number for a standard ApS lands the same day. The downside is the 2022 Bookkeeping Act: every ApS with turnover above DKK 300,000 must use a certified digital bookkeeping system and issue Peppol BIS 3.0 or OIOUBL e-invoices from 1 January 2026, with in-house systems covered from 1 July 2026. Fines up to DKK 1.5m. This is not optional.

What makes Denmark unique for a foreign-owned company?

Denmark pairs a same-day registry with almost no entry conditions: no residency rule, no local director, no notary deed. The unusual part runs the other way, towards disclosure. Legal owners from 5% sit in the public Ejerregister on CVR, and the 2022 Bookkeeping Act puts every ApS above DKK 300,000 of turnover on a certified digital system. Audit is optional below the thresholds set out under Company Types.

Trade-off: the 25% VAT is among the highest in Europe, with no reduced rate for food, hotels, or hospitality. For B2C businesses selling into Denmark, that is a real pricing constraint. For B2B and holding businesses it is neutral — VAT passes through.

Company Types Available in Denmark

Danish company law recognises six commercial forms. For 95% of cf24 clients the answer is the ApS.

Anpartsselskab (ApS)

The Danish private limited company, and the default vehicle for SMEs, holding companies, e-commerce, SaaS, consulting, and almost every non-resident incorporation. Minimum share capital is DKK 20,000, paid up in full before registration. One shareholder and one director are sufficient, and both can be the same person. Both can be foreign. Liability is capped at the value of the shares. Annual filings go to Erhvervsstyrelsen and Skat. Statutory audit is only required above two of three thresholds — turnover above DKK 12m, balance sheet above DKK 6m, or 12 employees — otherwise an audit can be opted out of from year one.

What does ApS mean?

ApS stands for anpartsselskab, literally a company of anparter (shares in a private company), the Danish term for a private limited company. It is the counterpart of a UK Ltd or a US LLC and is governed by the Danish Companies Act (selskabsloven). Foreign founders, holding structures and SMEs use it; the A/S is reserved for larger or listed businesses.

Aktieselskab (A/S)

The Danish public limited company. Used for listed businesses, large unlisted groups, and regulated financial businesses. Minimum share capital is DKK 400,000 of which at least 25% — DKK 100,000 — must be paid up at incorporation. Two-tier governance is possible (executive board plus supervisory board). Most cf24 clients do not need an A/S; if you are not raising public capital or operating a regulated business, the ApS is the right starting point.

Interessentskab (I/S) — General Partnership

Two or more partners, unlimited joint and several liability, no corporate tax at the entity level — each partner is taxed on their share of the profit. Used for small professional partnerships. Rare for foreign founders because of the unlimited liability.

Kommanditselskab (K/S) — Limited Partnership

General partner with unlimited liability (usually an ApS) plus limited partners with exposure capped at their contribution. Transparent for tax. Used heavily in fund structures, real-estate vehicles, and some ship-financing arrangements.

Enkeltmandsvirksomhed — Sole Trader

Personal income tax, no legal separation. Not a corporate vehicle. Not relevant for non-resident founders.

Filial — Foreign Branch

A foreign company operating in Denmark without forming a separate Danish entity. Registered with Erhvervsstyrelsen, but not a separate legal person. The parent's balance sheet is on the line. Useful where a non-Danish group needs a Danish presence without incorporating a subsidiary.

If your timeline is urgent, our sister brand's pre-incorporated Danish ApS are already registered with the CVR and transferable in days rather than the 2–6 weeks end-to-end that a new formation plus bank account takes.

Form	Min capital	Liability	Tax treatment	Common use
ApS	DKK 20,000	Limited	22% CIT	SMEs, holdings, non-resident incorporations
A/S	DKK 400,000 (25% paid up)	Limited	22% CIT	Listed cos, large unlisted, regulated
I/S	None	Unlimited	Partners taxed personally	Small professional partnerships
K/S	None	Mixed	Partners taxed personally	Funds, real-estate, shipping
Enkeltmandsvirksomhed	None	Unlimited	Personal income tax	Sole traders
Filial	n/a	Parent's	Parent's home tax + DK on DK source	Foreign branch presence

Step-by-Step Formation Process

Denmark's process is one of the fastest in the EU for clean digital files. As your formation agent in Denmark, we submit the file to Erhvervsstyrelsen (the Danish Business Authority) through Virk.dk. The company is then entered in the Central Business Register (CVR), the Danish company registry. Typical sequence:

1. Name check and reservation (Day 0). Reserve the company name and confirm there is no conflict on the CVR. Unique, not misleading, not confusable with a protected mark.
2. Documents drafted (Day 0–1). Articles of association (vedtægter), founders' document (stiftelsesdokument), shareholder register, director appointment, registered office address. Identify the real owners for the beneficial-ownership register.
3. Share capital deposited (Day 1–3). DKK 20,000 paid into a Danish or EEA bank account in the company's name, or covered by a lawyer/accountant declaration. A bank confirmation or declaration is required before the file can be submitted.
4. Virk.dk filing (Day 3–4). The incorporation file is submitted to Erhvervsstyrelsen via Virk.dk using MitID (or through our authorised filer for clients without Danish eID).
5. CVR number issued (Same day or within 24 hours). Clean digital files generate the CVR number almost immediately. Manual files take up to 12 days.
6. Tax registration with Skattestyrelsen (Week 1–2). Register for corporate tax, VAT (if expected turnover > DKK 50,000), and PAYE. VAT registration must be filed at least 8 days before starting taxable activity.
7. Digital bookkeeping setup (Week 1–2). Connect a certified digital bookkeeping system (e.g. Dinero, e-conomic, Billy, Economic) and register on NemHandel for Peppol BIS 3.0 / OIOUBL e-invoicing — mandatory from 1 January 2026 above DKK 300,000 turnover.
8. Operational bank account (Week 2–8). Submit the full corporate pack to Danske Bank, Nordea, Jyske Bank, or Sydbank. For non-resident controlled companies this is the real bottleneck.

Required Documents

For each individual founder and director:

• Passport copy (certified or notarised)
• Proof of address dated within 3 months (utility bill, bank statement)
• CV / source of wealth summary
• Tax residency certificate if the country of residence is outside the EU
• Signed declaration of beneficial ownership

For corporate founders:

• Certificate of incorporation of the parent (apostilled if non-EU)
• Articles of association of the parent (apostilled if non-EU)
• Certificate of good standing or equivalent
• Register of directors and shareholders
• Ultimate beneficial owner chain to individuals
• Board resolution authorising the Danish incorporation

Danish-specific:

• Registered office address in Denmark (we provide one if required)
• MitID for at least one signatory, or use of an authorised Danish filer
• Bank confirmation of paid-up capital or a lawyer/accountant declaration
• Auditor election or opt-out resolution

Translations into Danish are required for non-Danish documents unless they are already in Danish, English, Norwegian, or Swedish. Documents issued in Hague Convention countries are apostilled; documents from countries outside the Convention need consular legalisation instead.

Where must a Danish company be based?

Every ApS gives a Danish registered office (hjemsted) address, which is entered in the CVR and shown publicly. A service address from a professional provider is accepted, and we supply one where the founder has no premises in Denmark. Registration in the CVR also makes the company tax resident here, and a foreign company whose real management sits in Denmark can become resident too.

Costs and Timeline

We quote a single fixed price that includes filings with Erhvervsstyrelsen, drafting of articles, VAT and PAYE registration with Skattestyrelsen, the beneficial-ownership entry, digital bookkeeping onboarding guidance, and a bank account introduction. Government fees are included in the package — we do not unbundle them. If you need a registered office in Denmark, apostilles on overseas documents, or a full-service compliance subscription, we quote those separately. For a fixed-price quote, contact us with your founder profile, intended activity, and expected turnover.

Milestone	Typical timing
Engagement and KYC complete	Day 0–3
Documents drafted and signed	Day 3–5
Share capital deposited / declaration issued	Day 5–7
Virk.dk filing submitted	Day 7
CVR number issued	Same day (digital) — often within hours
VAT and PAYE registration	Week 2–3
Digital bookkeeping and NemHandel live	Week 2–3
Operational bank account opened	Week 2–8
Fully operational	Week 2 to week 8

The CVR number lands fast. The bank does not. If you need to trade before the retail bank decision, a digital Danish IBAN via Payset or a multi-currency EMI account (Wise Business, Revolut Business) will typically get you operational within a week.

What are the fees for incorporating a Danish company?

Four items make up the cost of a Danish ApS. They are the Erhvervsstyrelsen registration fee, drafting the vedtægter and stiftelsesdokument, the bank confirmation or lawyer declaration for the paid-up capital, and Skattestyrelsen registration. The DKK 20,000 share capital is not a fee; it stays in the company as working capital. We quote one fixed price, government fee included.

Tax Overview for Danish Companies

Denmark's corporate tax system is straightforward by EU standards — one rate, one tier, strong participation exemption, high withholding but broad treaty relief.

Corporate income tax. 22% (unchanged since 2016) flat on worldwide profits, charged on ApS and A/S alike. The rate has been stable since 2016 and survived the 2026 tax-reform budget unchanged. Losses can be carried forward indefinitely but use is capped above DKK 9.5m of taxable income (65% of the excess is deductible).

VAT (moms). 25% single standard rate — among the highest in the EU — with no reduced rates for food, hotels, or hospitality. 0% applies to newspapers. The registration threshold is DKK 50,000 over any 12-month period. Non-resident businesses have no threshold and must register from the first sale. Filing is monthly, quarterly, or semi-annually depending on turnover.

Withholding tax on outbound payments. Dividends carry a 27% statutory rate, but drop to 0% under the EU Parent-Subsidiary Directive for qualifying EU/EEA parents, to 0–15% under most treaties, and to 0% on tax-exempt portfolio shares under the 2025 amendment. Interest is 0% to residents, 22% to non-residents (with broad treaty relief). Royalties are 22% with treaty relief. Denmark applies a strict beneficial-ownership and anti-abuse test — the Danish Supreme Court has repeatedly denied treaty benefits to conduit companies since 2019.

Capital gains. Gains on subsidiary shares (holdings of 10% or more) are exempt. Gains on portfolio shares (<10%) are taxed at 22% unless they qualify as tax-exempt portfolio shares under the 2025 rules.

How is a Danish ApS taxed when the owner lives abroad?

The ApS itself pays 22% on its profits wherever its shareholder lives. Dividends paid to a non-resident individual carry 27% withholding at source; most Danish treaties cap the rate at 15%, and the difference is reclaimed from Skattestyrelsen. A corporate parent in the EU or EEA holding 10% or more receives dividends at 0%. Director salary paid by the ApS for work done in Denmark is taxed in Denmark under limited tax liability.

R&D super-deduction. 114% in 2026 — enhanced deduction for qualifying research-and-development expenditure. Refundable via cash payment up to a cap.

E-invoicing and digital bookkeeping. From 1 January 2026 all businesses with turnover above DKK 300,000 must use a certified digital bookkeeping system and issue structured e-invoices in Peppol BIS 3.0 or OIOUBL 2.1 via NemHandel. In-house software gets until 1 July 2026. Fines reach DKK 1.5m. The Danish Business Authority cancelled the OIOUBL 3.0 update in January 2026 in favour of EU EN 16931 / Peppol alignment, so incoming ApS clients should choose a Peppol-ready system from day one.

Banking for Danish Companies

Banking is the slowest part of a Danish formation, and for non-resident-controlled ApS companies the rejection rate is 30–50%. Realistic expectations matter.

Danske Bank. The largest Danish bank and the most common choice for Danish-domiciled groups. Accepts non-resident applications but asks for a CPR number or full corporate KYC, and turnaround is 3–6 weeks. Good corporate desk for international groups with substance in Denmark.

Nordea. Pan-Nordic, strong if the group already has a Nordea relationship in Sweden, Norway, or Finland. For pure non-residents without a CPR number and without a Nordic presence, Nordea is the hardest to get onboarded. Their public position is that a CPR or Nordic TIN plus residence permit is needed for most products.

Jyske Bank. Third-largest Danish bank. Corporate desk in Aarhus and Copenhagen is open to international groups provided the business model is clear and the beneficial owners pass KYC. Non-resident directors can usually do in-person KYC in a single Copenhagen meeting.

Sydbank. SME-focused bank with strong roots in Jutland. Case-by-case on non-residents; good for small ApS with a genuine operational story in Denmark.

Spar Nord and Lunar Business. Smaller tier and a Danish neobank, respectively. Limited non-resident appetite but worth considering for founder-only ApS with simple structures.

EMI and digital alternatives. Wise Business, Revolut Business, and Payset (Danish IBAN for non-residents) are the pragmatic bridge while the retail bank file is pending. They are not substitutes for the paid-up capital confirmation — that still needs to sit in a Danish or EEA bank, or be covered by a lawyer/accountant declaration — but for trading, payroll, and invoicing they are live within days.

We do not open the bank account for you. We make the introduction, prepare the corporate pack to Danish standard, and coach the founder through the KYC interview. Final credit decision is always the bank's.

Compliance and Reporting Obligations

A Danish ApS reports to two authorities. Erhvervsstyrelsen receives the annual report (årsrapport) through the Regnskab Basis or Regnskab Special digital filing, within six months of the financial year end for a class B company. Skattestyrelsen receives the corporate tax return (selskabsselvangivelse) within six months of the end of the income year, filed through TastSelv Erhverv. Corporate tax is paid on account (acontoskat) on 20 March and 20 November. VAT returns follow the filing frequency set by turnover. The beneficial owners registered at incorporation must be checked at least once a year and updated when ownership changes. Legal owners holding 5% or more are entered in the Ejerregister within two weeks of any change.

Obligation	Deadline
Annual report (årsrapport) to Erhvervsstyrelsen	6 months after the financial year end
Corporate tax return to Skattestyrelsen	6 months after the end of the income year
Corporate tax on account (acontoskat)	20 March and 20 November
VAT (moms) returns	Semi-annually below DKK 5m turnover, quarterly up to DKK 50m, monthly above; new companies start quarterly
Register of legal owners (Ejerregister)	Within 2 weeks of a change in a holding of 5% or more
Beneficial owners (reelle ejere)	Registered at incorporation, checked at least annually, updated after every change
Digital bookkeeping	Certified system and e-invoicing readiness from 1 January 2026 above DKK 300,000 turnover (see Tax Overview)

Erhvervsstyrelsen enforces the annual report deadline with a fine on each member of management first. If the report is still missing after the grace period, the company is sent to the bankruptcy court for compulsory dissolution (tvangsopløsning). The same sanction applies to a missing beneficial-owner registration. We track every deadline above as part of the annual compliance subscription.

Forming a Danish Company as a Non-Resident

A non-resident can be the sole shareholder and sole director of a Danish ApS. Danish company law sets no residency, nationality or local-director requirement, and no CPR number is needed for the registration itself. The only practical hurdle is MitID: without Danish eID you cannot self-file on Virk.dk, so we submit the file as your authorised filer. For founders who need a nominee shareholder or director structure, see our nominee director service.

Each non-resident founder and director provides a certified passport copy, proof of address under three months old, a short CV with source of wealth, and a signed beneficial-ownership declaration. Founders resident outside the EU add a tax residency certificate, and non-EU parent companies supply apostilled corporate documents. Papers in English, Norwegian or Swedish need no Danish translation. Founders from the United States apostille their documents through the Secretary of State of the issuing state. A US LLC acting as parent adds an apostilled certificate of good standing. The papers are in English, so no translation is needed.

No visit is required for the CVR registration. Banking is different: Danish retail banks reject 30 to 50% of non-resident applications and want in-person KYC, and Jyske Bank will usually take it in a single Copenhagen meeting. Most non-resident founders trade through Wise, Revolut or a Payset Danish IBAN while the retail bank file runs its 2 to 8 weeks.

Owning an ApS does not by itself give a residence right. EU and EEA citizens may live and work in Denmark and register with the Danish Agency for International Recruitment and Integration (SIRI) after arrival. A founder from outside the EU needs a separate residence permit. The Start-up Denmark scheme, run by SIRI on the basis of a business plan assessed by an expert panel, is the route designed for company founders. We form the company and refer permit questions to immigration counsel.

Can an American company own a Danish ApS?

Yes. A US corporation or LLC can hold every share in a Danish ApS, and an American director is registered without a CPR number. The parent supplies the apostilled corporate documents listed above. Dividends to a qualifying US corporate parent fall below the 27% statutory rate under the Denmark United States double tax treaty, reclaimed from Skattestyrelsen.

Can we provide nominee shareholders in Denmark?

No. We do not offer nominee shareholders or nominee directors in any EU member state, Denmark included. A nominee would give no privacy in any case. Legal owners with 5% or more appear in the public Ejerregister and the beneficial owners in the reelle ejere register, both searchable on CVR. A foreign holding company as the registered shareholder is the lawful alternative, with the ultimate owner still disclosed.

Frequently Asked Questions

How long does it take to form an ApS in Denmark?

The CVR number is usually issued the same day a clean digital file is submitted through Virk.dk — often within hours. Tax registration with Skattestyrelsen follows in 1–2 weeks. The real end-to-end timeline is set by the operational bank account, which takes 2–8 weeks for non-resident-controlled companies.

What is the minimum share capital for a Danish ApS in 2026?

DKK 20,000 — roughly €2,680. This is the reduced figure in force since 27 February 2025, cut from DKK 40,000 under amendments to the Danish Companies Act. The capital must be paid up in full before registration, either into a Danish or EEA bank or covered by a lawyer or accountant declaration.

Can a foreigner own a company in Denmark?

Yes. A non-resident individual or foreign company can be the sole shareholder and sole director of a Danish ApS. There is no residency or nationality requirement. MitID is needed to self-file on Virk.dk — if you do not have it, an authorised Danish filer (such as us) submits on your behalf.

Do I need a CPR number to open a Danish company?

No, not to register the ApS itself. You do usually need one — or full corporate KYC plus in-person meetings — to open a retail Danish bank account. That is why non-resident founders commonly pair a CVR-registered ApS with an EMI or digital bank (Wise, Revolut, Payset) while the retail bank file is pending.

What is the corporate tax rate in Denmark?

22% flat on worldwide profits, charged on both ApS and A/S companies. The rate has been stable since 2016 and the 2026 tax reform — which introduced a new top-top personal income tax bracket — did not change the corporate rate. Losses carry forward indefinitely, subject to the 65% cap above DKK 9.5m of taxable income.

Is Denmark good for holding companies?

For EU-sourced holdings, yes. Dividends from qualifying subsidiaries (≥10%) are exempt. Capital gains on subsidiary shares are exempt. Outbound dividends to EU parents run at 0% under the Parent-Subsidiary Directive. The catch is Denmark's beneficial-ownership jurisprudence — the Supreme Court has denied treaty relief to conduit structures since the 2019 cases, so substance matters.

What is a CVR number?

The CVR (Det Centrale Virksomhedsregister) number is the unique 8-digit identifier issued by Erhvervsstyrelsen to every Danish business on registration. It functions as the company's tax ID, VAT ID (prefixed DK), and public-register key. It is issued via Virk.dk on the same day as a clean digital ApS filing.

Get Started — Form Your Danish Company

Ready to incorporate? Send us the founder profile, the intended activity, and the expected turnover. We come back with a fixed-price quote covering articles of association, Virk.dk filing, CVR issuance, Skattestyrelsen registration, digital bookkeeping onboarding, and a bank account introduction. Turnaround from engagement to CVR number is typically under a week for clean files; operational banking takes 2–8 weeks on top.

Call +48 2222 5 2222 or email info@companyformation24.com to start. Non-resident founders welcome. Fixed price, dedicated manager, all government fees included.

Content prepared by Piotr Walter, In-house Counsel. Approved by Tomasz Bielski, Managing Director.