Denmark Company Registration Guide 2025: Policies, Steps, and Practical Tips

Starting a business in Denmark remains attractive in 2025 due to a transparent legal framework, straightforward electronic registration, and stable tax arrangements. This guide summarizes the essential company forms, key regulatory touchpoints, step-by-step registration actions, and practical precautions for founders—both domestic and foreign—seeking to register and operate in Denmark.

Core company forms and policy context

Common legal entities used in Denmark include:

• Private limited company (Anpartsselskab, ApS) – popular for SMEs; minimum share capital traditionally DKK 40,000.
• Public limited company (Aktieselskab, A/S) – for larger corporations; higher capital requirements (historically DKK 400,000).
• Sole proprietorship (Enkeltmandsvirksomhed) – simplest structure for self-employed individuals.
• Branch of a foreign company – not a separate legal person, but must register with Danish authorities.

Regulatory essentials to keep in view: electronic filing via the Business Authority (Erhvervsstyrelsen) and the central Business Register (CVR); tax and payroll administration by the Danish Tax Agency (SKAT); and compliance with EU and Danish rules on anti‑money laundering (AML) and beneficial ownership disclosure. Digital identity (MitID for businesses) and online access to virk.dk remain central to completing filings.

Notable policies and interpretations relevant in 2025

By 2025 Denmark emphasizes administrative digitalization and transparency. Key policy themes founders should note:

• Digital-first processing: Most registrations and updates go through virk.dk; ensure you have the correct business MitID access. This accelerates CVR issuance and ongoing compliance.
• Beneficial ownership (UBO) and AML: Companies must report UBO information and keep it current. Authorities continue to stress accuracy and sanctions for non-compliance.
• Tax administration consistency: Corporate tax has remained competitive, and SKAT focuses on correct VAT (MOMS) reporting, payroll withholding (A-skat), and transfer-pricing documentation for cross-border groups.
• Labor rules: Danish employment law and collective bargaining influence contracts, notice periods, and termination procedures—vital for workforce planning.

Note: Administrative practices evolve—always confirm details (fees, processing times, or thresholds) directly with Erhvervsstyrelsen and SKAT before finalizing plans.

Step-by-step company registration process

1. Choose legal form and name: Decide between ApS, A/S, sole proprietorship, or branch. Check name availability via the Business Authority’s online name check.
2. Prepare founding documents: Draft the articles of association and memorandum (for limited companies). For branches, prepare a certified copy of the parent company’s deed and a power of attorney for local representation.
3. Open a bank account or escrow for share capital: For ApS/A/S deposit the required share capital into a blocked account or follow the bank’s escrow procedure. Banks will also conduct KYC/AML checks; non-resident founders can expect additional documentation.
4. Register with the Danish Business Authority (Erhvervsstyrelsen): File electronically at virk.dk to obtain a CVR number (company registration number). Include UBO information and necessary attachments.
5. Register for tax and VAT: Register with SKAT for corporate tax, VAT (MOMS) if selling taxable goods/services, and as an employer if you will hire staff. Set up the NemKonto for state payments and ensure payroll systems account for A-skat and labor contributions.
6. Obtain digital authorizations: Secure MitID or other required digital signatures for company administrators to interact with public authorities.
7. Apply for licenses and sector permits: Some activities (finance, food, transport, healthcare, etc.) require sector-specific licenses—apply early.
8. Set up accounting and local compliance: Implement accounting records in line with Danish GAAP or IFRS (as applicable), set VAT reporting cycles, and plan annual reporting filings.

Practical timeline and costs

Processing times vary: straightforward CVR registrations can take a few days when all documents are in order; company bank onboarding and capital confirmation may take longer due to compliance checks. Filing fees and professional costs (notary, translation, legal counsel) depend on the route taken—confirm current fees on official sites.

Notes (Practical precautions)

• UBO accuracy: Ensure beneficial ownership details are complete and updated—mistakes can trigger fines.
• Bank requirements: Banks often require in-person meetings or video identification for non-resident owners; anticipate extra documentation and longer opening times.
• Employment law: Danish dismissal rules, collective agreements, and statutory benefits can differ significantly from other jurisdictions—obtain local HR/legal advice before hiring.
• VAT and invoicing rules: Danish VAT invoicing has specific requirements (language, VAT number display, reverse-charge rules for cross-border services). Align invoicing templates to local rules.
• Data protection: GDPR compliance is mandatory—implement privacy policies and data handling procedures from day one.
• Language and translations: While many authorities accept English, official documents and communications may require Danish translations—budget for certified translations where necessary.

Illustrative cases

Case 1: Tech startup from the UK

A four-person UK team chose ApS in Copenhagen to access local talent and the EU market. They opened a blocked capital account, filed articles online, secured MitID, and received a CVR within a week. Their main challenges were bank KYC and integrating Danish payroll—both resolved with local advisors.

Case 2: Trading company pursuing a branch

A Chinese trading firm registered a Danish branch to test the market before incorporation. The branch had to submit translated corporate documents and appoint a Danish authorized representative. VAT registration was done in parallel to begin local operations.

Case 3: Freelancer registering as sole proprietor

An EU freelancer registered an Enkeltmandsvirksomhed on virk.dk with minimal formalities. She registered for VAT once her turnover expectations exceeded threshold levels and used simplified bookkeeping rules for small businesses.

Checklist before you start

Practical resources

• Erhvervsstyrelsen (Danish Business Authority) – company registration and forms
• Virk.dk – central business portal for filings
• SKAT (Danish Tax Agency) – VAT, corporate tax, payroll rules
• Local law/accounting firms – for sector-specific and labor law advice

For founders operating internationally or needing seafarer and maritime staffing support, consider outreach to service providers focused on cross-border human services—SailGlobal offers specialist assistance for out-of-sea personnel placement and related compliance.

Final note

Denmark offers a streamlined and predictable environment for company registration, but success depends on early attention to digital identity, banking requirements, tax registration, and labor rules. Policies and administrative details can change—confirm the latest procedural rules and fees with the Business Authority and SKAT before filing.