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Denmark Company Formation

Denmark Company Formation. Denmark LLC Main Characteristics and the basic rules of Company registration in Denmark

Denmark Company Formation with BRIS Group

BRIS Group provides professional Denmark company formation services for entrepreneurs and international investors seeking to establish a strong presence in Northern Europe. Setting up a Danish Private Limited Company (ApS) offers limited liability protection, access to the European Union market, and a stable, transparent business environment. Our experts manage the entire Denmark company registration process remotely, including assistance with corporate banking, compliance, and ongoing administration, ensuring your company in Denmark is fully compliant and ready for European and global operations.

A Comprehensive Guide for Non-Residents to Register a Company in Denmark

Denmark stands out as one of Europe’s most stable, transparent, and business-friendly destinations for international entrepreneurs. With a robust economy, strong governance, and a highly educated workforce, Denmark company formation offers non-residents access to a credible EU base for global operations.

While not a traditional offshore jurisdiction, Denmark combines the benefits of EU market access, low administrative barriers, and world-class infrastructure — making it ideal for investors seeking a reputable European presence.

Key Highlights of Denmark Company Formation

Feature	Details
Legal Framework	Danish Companies Act (Selskabsloven)
Regulatory Authority	Danish Business Authority (Erhvervsstyrelsen)
Business Identifier	CVR Number (Central Business Register ID)
Corporate Tax Rate	22% flat
Minimum Share Capital (ApS)	DKK 40,000 (~€5,400)
Foreign Ownership	100% allowed
EU Membership	Full access to the European Union market
Average Formation Time	2–4 weeks
Currency	Danish Krone (DKK)
Language of Incorporation	Danish or English (for key documents)

Why Consider Denmark for Your Company?

Denmark consistently ranks among the world’s top countries for ease of doing business and transparency. Its political stability, digital administration systems, and pro-innovation policies create an ideal climate for both startups and established corporations.

Key Benefits for Non-Residents Include:

✅ Full EU Market Access – Trade freely across all 27 EU member states.
✅ Reputation & Credibility – Denmark’s strong regulatory standing enhances global trust.
✅ Efficient Digital Systems – Most incorporation steps are completed online via Virk.dk.
✅ Stable Legal & Economic Framework – Predictable tax laws and business protection.
✅ Highly Skilled, English-Proficient Workforce – Ideal for tech, logistics, and professional services.
✅ Attractive for Holding & Trading Companies – Benefiting from Denmark’s extensive double-tax treaties.

💡 Expert Tip: Denmark’s emphasis on sustainability and innovation makes it a hub for green technology, fintech, and life-science ventures.

Is Denmark an Offshore Jurisdiction?

No. Denmark is a fully compliant EU jurisdiction, not a tax haven. However, its efficient corporate environment and strong international reputation make it a smart alternative to offshore setups — combining legitimacy with operational efficiency.

Through strategic tax planning, non-resident companies can enjoy competitive rates, cross-border benefits, and simplified EU trade access.

Types of Companies for Non-Residents

Company Type	Description	Minimum Share Capital	Best Suited For
ApS (Anpartsselskab)	Private limited company with limited shareholder liability.	DKK 40,000 (~€5,400)	SMEs, consultants, e-commerce, tech startups
A/S (Aktieselskab)	Public limited company, may issue shares publicly.	DKK 400,000 (~€54,000)	Larger or listed enterprises
Branch of a Foreign Company	Operates as an extension of a parent company abroad.	N/A	Multinational groups expanding into Denmark
Representative Office	Non-trading office for liaison and research.	N/A	Market exploration before full incorporation

Requirements for Denmark Company Registration

Requirement	Details
Company Name	Must be unique and registered with Erhvervsstyrelsen
Articles of Association	Defines company structure, governance, and share capital
Memorandum of Association	Lists founders, share capital, and management appointments
Registered Office Address	Required in Denmark (can be a virtual or physical office)
Directors & Shareholders	At least one of each (can be non-residents)
CVR Number	Unique company identification number issued post-registration
Share Capital Deposit	Proof of deposit into a Danish bank account
Tax Registration (SKAT)	Required for corporate tax and VAT purposes
Business Bank Account	Needed for capital deposit and financial operations

Step-by-Step Process for Denmark Company Formation

Step 1: Choose the Appropriate Company Type

Decide between an ApS, A/S, or branch office depending on your business size and funding.

Step 2: Reserve and Register Your Company Name

Verify availability and register your company name with the Danish Business Authority.

Step 3: Draft Founding Documents

Prepare the Articles and Memorandum of Association outlining ownership, purpose, and management.

Step 4: Deposit Share Capital

Deposit the required capital into a temporary corporate bank account and obtain proof of payment.

Step 5: Online Registration via Virk.dk

Submit your incorporation documents through the Virk.dk portal and pay the official registration fee.

Step 6: Obtain a CVR Number

Once approved, your company receives a CVR number, Denmark’s official business ID.

Step 7: Register for Tax and VAT

Step 8: Open a Permanent Corporate Bank Account

Convert your temporary account into a full operating business account.

Step 9: Ensure Ongoing Compliance

Maintain statutory records, file annual financial statements, and comply with Danish accounting standards.

Timeframe for Company Formation

Process Stage	Estimated Duration
Company Name Reservation	1–2 business days
Document Preparation	2–3 days
Online Registration & CVR Issuance	1–3 days
Bank Account Setup & Capital Deposit	1–2 weeks
Average Total Time	2–4 weeks

Advantages of Forming a Company in Denmark

✅ Trusted and transparent EU jurisdiction
✅ 100% foreign ownership permitted
✅ Competitive 22% corporate tax rate
✅ Simplified online registration process
✅ Access to 70+ double taxation treaties
✅ Repatriation of profits without restrictions
✅ Stable currency (DKK) pegged to the euro
✅ Ideal location for Nordic and EU market reach

Potential Challenges for Non-Residents

❌ Initial setup and bank procedures can be time-consuming
❌ Compliance with Danish accounting standards required
❌ Some filings and official documents must be in Danish
❌ Ongoing audit obligations for larger companies

🔍 Need guidance? Our experts manage the legal, tax, and administrative steps so you can focus on growing your business.

How Our Professionals Can Help

Our Denmark company formation specialists provide end-to-end solutions for non-residents establishing a presence in Denmark.

Service	Description
Incorporation Strategy	Tailored advice on selecting the optimal legal structure
Document Drafting	Preparation of Articles, Memorandum, and corporate records
Online Filing with Virk.dk	Complete registration with the Danish Business Authority
Bank Account Assistance	Coordination with Danish banks for share-capital deposits
Tax & VAT Registration	Fast setup with SKAT for tax and VAT obligations
Accounting & Compliance	Ongoing bookkeeping, auditing, and annual filings
Registered Office Services	Local address and mail handling in Denmark
Substance & HR Setup	Assistance with local staffing and payroll
Legal & Tax Advisory	Strategic planning to optimize your tax position

Start Your Denmark Company Formation Today

Denmark’s innovation-driven economy, digital efficiency, and EU market access make it one of the most secure and respected jurisdictions in Europe for international entrepreneurs.

Our team of professionals ensures your Denmark company formation is smooth, compliant, and strategically structured for long-term success.

📞 Contact us today to learn how we can help you incorporate in Denmark, manage compliance, and unlock the advantages of doing business in this trusted European hub.

Ready to Register Your Company in Gibraltar

Questions & Answers

FAQ - Taxation in Denmark

1. What is the Corporation Tax rate in Denmark?

The Corporation Tax rate in Denmark is 22%. This rate is applicable to the net income of companies operating in the country. Companies must file their tax returns by the deadline, typically nine months after the end of the financial year.

2. How are dividends taxed in Denmark?

Dividends paid to shareholders in Denmark are subject to a withholding tax, which is generally set at 27%. If the dividends are distributed to a corporate shareholder, they may benefit from exemption under specific conditions or reduced rates due to tax treaties.

3. What are the income tax rates for individuals in Denmark?

Denmark employs a progressive income tax system. For 2023, the rates range from approximately 8% to 55.8%, depending on the individual’s income level. The overall tax burden includes municipal tax, state tax, and contributions to labor market insurance.

4. What is the VAT rate in Denmark?

The standard VAT rate in Denmark is 25%. It applies to most goods and services, making it one of the highest VAT rates in Europe. Certain items may be exempt or subject to reduced rates, but the majority of consumer purchases fall under the standard rate.

5. What other taxes exist in Denmark?

Apart from Corporation Tax, income tax, dividends tax, and VAT, Denmark imposes several other taxes. These include property tax, capital gains tax, and a wealth tax on high-value assets. Additionally, there are specific taxes related to environmental issues, such as CO2 taxes.

Feel free to reach out with any specific inquiries regarding taxation in Denmark.

Learn more: Visit our
Full Company Formation FAQ page
or contact our tax and company formation team at [email protected]

FAQ: Registration Company in Denmark

What is the process for forming a company in Denmark as a non-resident?

To form a company in Denmark as a non-resident, you must first select a suitable business structure, such as an ApS (private limited company) or a sole proprietorship. The next step involves registering the company with the Danish Business Authority (Erhvervsstyrelsen) via their online portal. You will need a Danish address, a registered company name, and identification documents. It’s advisable to consult with professionals who specialize in Danish company law to ensure compliance with all regulations.

Do I need a Danish resident director to start a company in Denmark?

No, you do not need to appoint a Danish resident as a director for your company in Denmark. Foreign nationals can be directors of companies, but the company must have at least one official registered address in Denmark. Additionally, it’s recommended to have a local representative or service provider who can assist with legal matters and communications with authorities.

What are the minimum capital requirements for a Danish company?

For a private limited company (ApS) in Denmark, the minimum share capital requirement is DKK 40,000 (approximately €5,300). This capital must be deposited into a Danish bank account during the formation process. For public limited companies (A/S), the minimum capital requirement is DKK 500,000 (approximately €67,000). Ensuring the correct capital structure is crucial for adherence to Danish company laws.

Are there any tax implications for non-resident company owners in Denmark?

Yes, non-resident company owners in Denmark are subject to Danish taxation on income generated within the country. The corporate tax rate in Denmark is currently 22%. Additionally, depending on the residency of the owners and any applicable double taxation treaties, there may be implications on personal income tax as well. It’s advisable to consult with a tax advisor familiar with both Danish tax laws and the tax laws of your home country.

Can I open a bank account in Denmark as a non-resident?

Yes, non-residents can open a bank account in Denmark but requirements may vary by bank. Generally, you will need to provide proof of identity, address, and a Danish company registration number. Some banks may also require personal documentation such as a passport, proof of residence in your home country, and the company’s formation documents. It is recommended to research and choose a bank that facilitates the needs of foreign entrepreneurs.

What are the benefits of forming a company in Denmark as a non-resident?

Forming a company in Denmark offers various advantages for non-residents, including a stable economy, transparent legal framework, and access to the European Union market. Denmark is known for its business-friendly environment, with strong support for entrepreneurs. Moreover, the country has a well-educated workforce and a high standard of living. Non-residents also benefit from efficient incorporation processes and online administrative services, making it easier to manage their businesses remotely.