Denmark Company Formation: A Guide for Foreign Investors (2025)

1. Choosing a Legal Structure:

• ApS (Anpartsselskab - Private Limited Company):
  • The most common choice for small to medium-sized businesses.
  • Requires a minimum share capital. Verify the current minimum share capital with the Danish Business Authority (Erhvervsstyrelsen) as it can change.
  • Limited liability for shareholders.
• A/S (Aktieselskab - Public Limited Company):
  • Suitable for larger companies and those seeking to raise capital through public offerings.
  • Requires a higher minimum share capital. Verify the current minimum share capital with the Danish Business Authority (Erhvervsstyrelsen) as it can change.
  • Limited liability for shareholders.
• Branch Office (Filial):
  • An extension of a foreign company.
  • The foreign company remains liable for the branch's obligations.
• Subsidiary:
  • A seperate legal entity.

2. Registering the Company:

• Digital Registration:
  • Company registration is primarily done online through the Danish Business Authority's (Erhvervsstyrelsen) website (virk.dk).
  • This requires a digital signature (NemID/MitID). Foreigners can obtain a NemID/MitID through the correct channels.
• Company Name:
  • Choose a unique company name that is not already registered.
  • The name must comply with Danish naming conventions.
• Articles of Association (Vedtaegter):
  • Draft the company's articles of association, which outline its purpose, share capital, management structure, and other key details.
• Registration with the Danish Business Authority:
  • Submit the required documents and information through the online portal.
  • Pay the registration fee.
• Obtaining a CVR Number:
  • Upon successful registration, the company will receive a CVR number (Central Business Register number), which is its unique identification number.

3. Post-Registration Requirements:

• Bank Account:
  • Open a Danish bank account for the company.
• VAT Registration (if applicable):
  • Register for VAT with the Danish Tax Agency (Skattestyrelsen) if the company's taxable turnover exceeds the threshold.
• Accounting and Bookkeeping:
  • Comply with Danish accounting and bookkeeping standards.
  • Hire a qualified accountant or bookkeeper.
• Employee Registration (if applicable):
  • Register employees with the relevant authorities.
• Obtaining necessary permissions and licenses.

Important Considerations for Foreign Investors:

• Digital Signature (NemID/MitID)::
  • Obtaining a digital signature is essential for online registration.
  • The process for foreigners can be complex, so it is important to begin the process early.
• Legal and Accounting Advice:
  • Seek professional legal and accounting advice to ensure compliance with Danish regulations.
• Language:
  • While English is widely spoken in Denmark, some documents may need to be translated into Danish.
    • Registered Address:
      • The company must have a registered address in Denmark.
    • Share Capital:
      • Verify the current minimum share capital requirements.

    Key Takeaway:

    • Denmark offers a streamlined and digitalized company formation process.
    • Compliance with regulations and professional advice are essential.
    • Digital signature is required.