Denmark at a glance
Denmark is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.
Company types in Denmark
- ApS (Anpartsselskab) The private limited company, the most popular structure for SMEs and foreign-owned businesses. Minimum capital DKK 20,000 (reduced from DKK 40,000 on 1 January 2025), with limited liability and single-shareholder ownership allowed.
- A/S (Aktieselskab) The public limited company for larger ventures or a listing. Requires DKK 400,000 of capital (at least 25% paid in) and a board.
| Corporate tax | Flat corporate income tax of 22%, with no local or municipal surcharge. Large groups above EUR 750 million of turnover face the 15% Pillar Two minimum tax. |
|---|---|
| VAT rate | Standard VAT (moms) is 25%, among the highest in the EU, with effectively no reduced positive rate. Registration is mandatory once turnover exceeds DKK 50,000 in 12 months. |
| Dividends & payroll taxes | Dividends are taxed at 27%, rising to 42% above the threshold. All-in personal income tax reaches roughly 52%, while employer social contributions are unusually small; the labour cost lives in the gross salary itself. |
| Minimum share capital | ApS: DKK 20,000, lowered from DKK 40,000 on 1 January 2025. A/S: DKK 400,000, with at least 25% paid in at registration. |
| Setup time | Typically about 1 to 2 weeks once documents and the capital deposit are ready. A complete online filing with the Danish Business Authority often produces a CVR number within 1 to 5 business days. Opening a bank account is usually the main delay. |
| Remote setup | Mostly online but with friction. Registration is filed digitally on the Virk.dk portal, but requires a MitID digital signature (and in practice a CPR number), which non-residents find hard to obtain, so foreign founders commonly use a local adviser to file and to handle the capital deposit. |
| Director / residency | No residency or nationality requirement for directors or shareholders, who may all be non-Danish and non-EU. A registered office in Denmark is required. |
| Banking options | Banks include Danske Bank, Nordea, Jyske Bank and Sydbank, but opening an account as a non-resident is the main bottleneck (MitID, a CPR number and thorough KYC). Founders often deposit capital via a Danish law firm's client account, then use Wise or Revolut for daily banking. |
| Our formation service | from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit. |
Denmark halved the ApS minimum capital from DKK 40,000 to DKK 20,000 on 1 January 2025. The economy is highly digitalised: registration, annual reports and payroll are handled online via the CVR number and MitID identity. The flat 22% corporate tax and absence of a local surcharge keep direct taxation competitive.
How to register a company in Denmark
Step by step, this is how a Denmark formation actually runs:
- Prepare founders' identification. Registration runs on Virk.dk with MitID; non-residents without Danish e-ID typically incorporate through a local lawyer or agent.
- Draft the documents. Memorandum and articles for the ApS, with the DKK 20,000 capital confirmed by a bank or lawyer.
- Register on Virk.dk. The Business Authority issues the CVR number, usually within days once identities clear.
- Tax registrations. Register for corporate tax, VAT (above DKK 50,000 turnover) and employer duties via the same portal.
- Banking. A Danish business account is the slowest step for non-residents; NemKonto designation is required for public payments.
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
What company formation in Denmark costs
The Virk registration fee is DKK 670 (under EUR 100), plus the DKK 20,000 (about EUR 2,700) capital which becomes working funds. Non-resident founders should budget several hundred euros for a lawyer or agent to bridge the MitID requirement. Accounting typically runs DKK 1,000 to 2,500 a month for a small ApS.
Form your Danish company in days
Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for Denmark, give you a fixed quote, and form the company with licensed counsel.
Get your free planWho can form a company in Denmark
Founders from outside the EU can own and run a Danish company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for Denmark up front, so there are no surprises.
Denmark fits founders with Nordic customers or Danish residence, where the digital administration is world-class once you hold MitID. For non-resident founders the e-ID and banking hurdles outweigh the polish, and Sweden or Estonia usually serve the same purpose with less friction.
After registration: what Denmark expects each year
The annual report goes to the Business Authority within six months of year end, filed digitally and published. Corporate tax runs on on-account instalments with the return following year end, and VAT is quarterly or half-yearly for small companies. Audit is optional below the small-company thresholds.
Denmark and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so a Danish company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh Denmark against other countries, see company formation in Europe.