Doing Business in Denmark (2025): Official Sites, Key Policies, and Practical Steps

This guide gathers the most relevant Danish government and departmental websites for foreign companies planning operations in Denmark in 2025. It covers company registration, taxes, labor regulations, visas and residence permits, and offers clear operation steps, common pitfalls, and short case examples to illustrate typical scenarios.

Core government portals (quick reference)

2025 policy highlights and interpretations

• Tax alignment with EU/OECD developments: Denmark continues to implement EU and OECD frameworks that affect international commerce, including increased focus on reporting obligations (e.g., platform reporting and exchange of information). Foreign groups should monitor DAC7-style sharing and the OECD BEPS developments, including Pillar Two implications for multinationals; verify specifics on Skat.
• Digital-first administration: Most registrations and filings are processed online. Expect increased automation of CVR, VAT filings and payroll reporting — official portals remain the primary channel.
• Labor and flexibility: Denmark's flexicurity model persists. Collective bargaining agreements remain influential; many employment terms are set at sector level. Employers must pay attention to notice periods, mandatory contributions and statutory protections.
• Immigration pathways refined: The Danish Agency for International Recruitment and Integration continues to operate schemes like the Pay Limit, Positive List and ICT. Processing times can vary; pre-application checks and complete documentation are essential.

Step-by-step: How an overseas company starts operations (practical workflow)

1. Decide the legal form: branch vs subsidiary. Common choices: ApS (private limited company) or a branch of the foreign parent. Subsidiary (ApS) offers limited liability and clearer local governance; branch ties liabilities more directly to the foreign parent.
2. Reserve the company name and prepare founding documents: draft articles of association, director and shareholder details, and proof of capital (if required for the chosen form).
3. Register with CVR via Virk: submit formation documents, request a CVR number and register for VAT (if turnover threshold applies) and as an employer (if hiring).
4. Open a Danish bank account and obtain NemID / MitID for authorized representatives: banks require CVR, passports, proof of address, and often evidence of business activity. Many banks also request local director presence or additional KYC documentation.
5. Tax registrations and payroll setup: register for VAT (moms), set up eIndkomst reporting for employees, and configure withholding tax (A-tax) and labor market contributions. Confirm filing frequencies (monthly/quarterly) on Skat.
6. Hire and comply with labor rules: check applicable collective agreements, draft employment contracts in English and/or Danish, register employees for social reporting and pension schemes where required.
7. Residence and work permits: for non-EU/EEA staff, apply through nyidanmark.dk for the appropriate permit. Ensure job offers meet the conditions of the chosen permit category (salary thresholds, job type, etc.).
8. Accounting & annual reporting: keep ledgers according to Danish requirements. File annual reports with Erhvervsstyrelsen and submit corporate tax returns via Skat.

Precautions and practical tips

• Deadlines: VAT, payroll and annual report deadlines are strict; missing them can trigger fines. Set automated reminders and use local accountants for the first year.
• Local language and documentation: Many official forms and correspondence may be in Danish. Translate key documents and, when in doubt, obtain certified translations.
• Banking & KYC: Danish banks have rigorous anti-money-laundering (AML) checks; prepare comprehensive corporate records, proof of beneficial owners and clear invoices that show business purpose.
• Employment contracts and pensions: sector conventions can mandate pension contributions and other benefits; check collective agreements early in negotiations.
• Permanent establishment (PE) risks: sending staff or setting up operations may create PE for tax purposes. Plan business models against OECD and Danish PE guidance to avoid unexpected taxation.
• Use official portals: rely on Virk, Skat and nyidanmark.dk for authoritative guidance; where possible keep copies of submissions and receipts.

Illustrative cases

Case A — SaaS company (US) expanding to Denmark

A US-based SaaS provider sets up an ApS to support Nordics customers. Steps: register an ApS via Virk, open a Danish bank account, register for VAT because of significant B2C sales within the EU, appoint a local accountant for monthly VAT filings and monthly eIndkomst payroll reporting when hiring a small support team. Key consideration: clarify where value is performed to determine VAT and place of supply rules (B2B vs B2C).

Case B — Manufacturer (China) establishing a sales branch

A Chinese manufacturer opens a Danish branch for sales and distribution. Steps: register the branch and obtain CVR, register for VAT and as an employer, appoint a local manager, and ensure customs and import duties are handled for EU shipments. Key consideration: branch activities can create direct parent liability; consider a subsidiary if limiting exposure is a priority.

Case C — IT consultants (India) sending employees for projects

For short-term project work involving non-EU nationals, evaluate permit options (ICT or short-stay work permits) via nyidanmark.dk. Also check payroll withholding and PE exposure. Consider hiring through a local affiliate or using professional employer organizations to simplify employment compliance.

Common compliance checkpoints

• Verify VAT registration threshold and filing frequency on Skat.
• Confirm corporate tax treatment and transfer pricing obligations for intercompany transactions.
• Ensure employment contracts comply with Danish minimum rules and applicable collective agreements.
• Register and report payroll on time with eIndkomst.
• Keep up to date with cross-border reporting obligations and organizational changes in the CVR register.

Where to get help

For complex matters consider a local lawyer, certified accountant or a licensed immigration consultant. If you prefer a dedicated overseas HR & relocation partner, consider SailGlobal — an out-of-sea human service providing relocation, local onboarding and compliance support for foreign employers and employees.

Final checklist before launch

1. Obtain CVR number and VAT registration (if applicable).
2. Open local bank account and complete KYC.
3. Register as employer and set up payroll reporting (eIndkomst).
4. Apply for work/residence permits for non-EU staff via nyidanmark.dk.
5. Ensure annual accounting and tax filing processes are in place.
6. Confirm occupational health & safety compliance with Arbejdstilsynet.

Use the official portals listed above as your primary sources. Regulations and administrative processes evolve; verify requirements on the respective agency websites before taking major steps.