Company formation in Denmark

Denmark is a highly desirable location for company incorporation due to its stable economy, transparent regulatory environment and business-friendly policies. The country is renowned for its developed infrastructure, advanced technology and highly qualified labor force, making it ideal for start-ups and existing businesses. Denmark consistently holds high positions in rankings for ease of doing business due to efficient bureaucracy and minimal administrative barriers.

The process of registering a company in Denmark can be completed online through the Central Business Register (CVR) and the documentation required is minimal. Foreign entrepreneurs are welcome and there is no requirement to have local directors or shareholders, making it easy for international businesses to set up companies. Denmark's strategic location in Northern Europe provides excellent access to both the European Union and Scandinavian markets, making it more attractive to companies looking to expand.

Denmark is also known for its emphasis on sustainability and green technology, making it a center for environmentally friendly and innovative businesses. A high quality of life, excellent healthcare system and well-educated population make the country attractive to potential employees and their families.

Denmark

Legal Opinion about Denmark as a Jurisdiction for Company Formation

Ganna Voievodina

Manimama, CEO

“In general, the stable political environment, strong legal framework and active support for business initiatives create a favorable atmosphere for company incorporation and growth in Denmark. Contact us and we will help you to quickly complete the incorporation of your company in Denmark”.

Our Packages

Our comprehensive packages simplify the process of setting up the perfect legal entity for your business whether you are a small start-up, a non-profit company, or an international company. Let us guide you through every step, ensuring your business begins on a solid foundation.

Company Formation

€2,500

  • Company formation in Denmark
  • Opening a bank account
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Additional services

€1,000

  • Registered address for 1 year
  • VAT registration
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Documents

€600

  • Apostille corporate documents (Certificate of incorporation and Articles of Association)
  • Document delivery
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Key Numbers about Denmark as a Jurisdiction for Company Formation

at least 1

director for an LLC

up to 1 week

timeline for a company registration

DKK 40,000

minimum share capital

22%

is a corporate income tax (CIT) rate

12.06-42%

is a personal income tax (PIT) rate

25%

is a value added tax (VAT) rate

Set up Your Company in Denmark in Several Steps

Step 1. Initial Setup

  • Initiating a preliminary project assessment
  • Preparation and filing of the package of documents

Step 2. Company registration

  • Verification and reservation of the company name at the Danish Enterprise Authority
  • Facilitating the notarial process for the company's official registration
  • Opening a bank account and depositing a minimum of DKK 40,000 (approx. €3,630) of the share capital
  • Incorporating the company's data into the Danish Enterprise Authority
  • Obtaining the Certificate of incorporation, Memorandum and Articles of Association
  • Registering for tax purposes with the Danish Customs and Tax Administration (SKAT); companies that need to register for VAT perform a separate registration
  • Obtain a business license or permits (if applicable)

Requirements for Company Formation in Denmark

Before deciding to set up a new company in Denmark, read the information below to understand the characteristics of a Private Limited Liability Company / Anpartsselskab (ApS):

Shareholders: the company must have minimum 1 shareholder.

Director: the company is required to have at least 1 director and member of the board. Directors can be of any nationality and reside anywhere in the world.

Company secretary: no requirement.

Minimum Share Capital: the required share capital is DKK 40,000 (approx. €3,630).

Legal Address: the company should have its office address in Denmark.

Liability: it is limited to the extent of one's contribution.

Accounting: the company must keep accounts and submit its annual report digitally every year. Annual reports must be submitted to the Danish Business Authority on VIRK no later than six months after the end of the fiscal year. In addition, the company must be audited, if any 2 of the following 3 criteria are met:

  • the company's balance reaches DKK 4 million
  • annual turnover exceeds DKK 8 million
  • has more than 12 full-time employees

Taxes in Denmark

Corporate income tax (CIT)

  • The standard rate is 22%.
  • Corporate income tax is payable on March 20 and November 20 of each year.
  • The CIT return is filed digitally via the Danish Tax Authorities’ digital tax platform.
  • Resident companies must file an annual corporate income tax return, the deadline for which is six months after the end of the financial year.
Personal income tax (PIT)

  • Taxation structure in Denmark for individuals employs a progressive income tax rate and is composed of different types of taxable income.
  • State income tax - 12.06% is imposed on the total taxable income exceeding DKK 49,700 (approx. €4,511). Personal income that exceeds DKK 588,900 (approx. €53,451) plus positive net capital income in excess of DKK 50,500 (approx. €4,583) is taxed at a rate of 15%.
  • Local income tax - the average municipal tax rate is 25.067%. The average church tax is 0.648%.
  • Share income tax - net share income up to DKK 61,000 (approx. €5,536) is taxed at a rate of 27% and any exceeding net share income is taxed at 42%.
  • Tax residents in Denmark and non-residents must file an annual Danish tax return. The return deadline is either May 1st or July 1st in the year following the relevant fiscal year, depending on the individual’s specific circumstances.
Value-added tax (VAT)

  • The standard rate is 25%.
  • If ApS turnover is expected to exceed DKK 50,000 (approx. €4,538) in a 12-month period, the company must register for VAT with the Danish Tax Agency.
  • Some business activities are exempted from VAT: hospital, medical and dental care, insurance, banking, and certain financial activities.
  • The deadline for filing and payment of VAT is 60 days after the VAT period. Monthly VAT declarations must be filed and paid no later than the 25th in the month after the VAT period.

Double taxation avoidance agreements in Denmark: Argentina, Armenia, Australia, Austria, Azerbaijan, Bangladesh, Belarus, Belgium, Bermuda, Brazil, British Virgin Islands, Bulgaria, Canada, Cayman Islands, Chile, China, Commonwealth of Independent States (CIS), Croatia, Cyprus, Czech Republic, Egypt, Estonia, Faroe Islands, Finland, Germany, Georgia, Ghana, Greece, Greenland, Guernsey, Hungary, Iceland, India, Indonesia, Ireland, Isle of Man, Israel, Italy, Jamaica, Japan, Jersey, Kenya, Korea, Republic of, Kuwait, Latvia, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Mexico, Montenegro, Morocco, New Zealand, Norway, Pakistan, Philippines, Poland, Portugal, Romania, Russia, Serbia, Singapore, Slovak Republic, Slovenia, South Africa, Sri Lanka, Sweden, Switzerland, Taiwan, Tanzania, Thailand, the Netherlands, Trinidad and Tobago, Tunisia, Turkey, Uganda, Ukraine, United Kingdom, United States, Venezuela, Vietnam, Zambia.

Start Your Company Formation Process with Manimama

There are numerous reasons why Manimama is the leading company formation agent in Denmark:

Expertise in Danish Regulations

  • 1. Manimama has an in-depth understanding of Denmark's legal and regulatory framework.
  • 2. Our team ensures all legal requirements are meticulously met for a seamless company formation process.

Local and International Experience

  • 1. With extensive experience in both local and international markets, Manimama can cater to a diverse range of business needs.
  • 2. Our expertise spans various industries, providing customized solutions for each client.

Efficient and Timely Service

  • 1. We pride ourselves on our swift turnaround times, ensuring your company is registered promptly.
  • 2. Our efficient processes minimize delays and get your business up and running quickly.

Client-Centric Approach

  • 1. Manimama prioritizes customer satisfaction by offering personalized support and guidance.
  • 2. Our dedicated team is always available to address any concerns and provide expert advice.

Robust Network of Local Partners

  • 1. We have established strong relationships with local authorities, banks, and service providers.
  • 2. This network ensures that your business receives the best possible support and resources.

Ongoing Compliance Support

  • 1. We provide continuous support to ensure your business remains compliant with Danish laws.
  • 2. Our team keeps you updated on any regulatory changes that may impact your company.

Frequently Asked Questions

  • What are the main types of companies in Denmark?
    The main types of companies include private limited companies (ApS), public limited companies (A/S), sole proprietorships, and partnerships.
  • What is the minimum share capital required for a private limited company (ApS)?
    The minimum share capital required for an ApS is DKK 40,000.
  • Can a foreigner start a business in Denmark?
    Yes, foreigners can start a business in Denmark without any restrictions.
  • Do I need a local director or shareholder to register a company?
    No, there are no requirements for local directors or shareholders in Denmark.
  • Is it possible to register a company online?
    Yes, the company registration process can be completed online through the Central Business Register (CVR).
  • What is the Central Business Register (CVR)?
    The CVR is Denmark's official business register where all companies must be registered.
  • What is the VAT rate in Denmark?
    The standard VAT rate in Denmark is 25%.
  • Do I need a business address in Denmark?
    Yes, a registered business address in Denmark is required for company registration.
  • How many directors are required for a ApS?
    ApS requires at least one director.
  • Are there annual reporting requirements for Danish companies?
    Yes, all companies must submit annual financial statements to the Danish Business Authority.
  • Is it mandatory to have an auditor for my Danish company?
    Small companies may be exempt from audit requirements, but larger companies must appoint a certified auditor.
  • What is the role of the Danish Business Authority?
    The Danish Business Authority oversees company registration, ensures compliance with business laws, and maintains the Central Business Register (CVR).

Client Feedbacks

“I liked the fact that the lawyers of Manimama OU always kept me informed, explained everything in plain language and acted as quickly as possible”.

“Working with Manimama OU was an exceptional experience. Their team's expertise, professionalism and dedication to our case resulted in a successful outcome beyond our expectations”.

"I cannot thank Manimama OU enough for their outstanding support and guidance during a challenging legal matter”.

Manimama as the Best Solution for Your Company Formation in Denmark

Choosing the right partner for company registration is crucial for a smooth and successful business launch. At Manimama, our legal experts specialize in navigating complex legal landscapes, providing holistic solutions tailored to your needs.

Comprehensive Legal Expertise
Since our inception, Manimama has been at the forefront of tackling intricate legal challenges with innovative and thorough solutions. Our team of dedicated lawyers evolves alongside our firm, reflecting our people-centric philosophy and commitment to excellence.

Results-Driven Approach
Manimama is a results-oriented law firm that offers an extensive array of legal services to both individuals and corporate entities. We pride ourselves on maintaining the highest standards of integrity and a "client-first" approach, leveraging our extensive skills and knowledge to achieve the best outcomes for our clients.

Global Presence and Local Expertise
Our journey began with the establishment of Manimama OU's first European office in Estonia, a country renowned for its progressive regulation of virtual currencies, international investments, fintech, and gambling sectors. Estonia’s favorable tax system and digital-friendly investment climate provided a robust foundation for our expansion.

Community Commitment
At Manimama, we believe in giving back to society and making a positive impact. Our commitment to social responsibility is integral to our operations, ensuring that we contribute to making the world a better place while helping our clients achieve their business goals.

By choosing our company formation service in Denmark, you are partnering with a law firm that values integrity, expertise, and client satisfaction. Let us help you set up your company in Denmark and pave the way for your business success.

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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.