How to start a business in Denmark - company formation, taxes & VAT

Denmark’s liberal approach to life in general is mirrored in its attitude to companies coming in from abroad. Company formation in Denmark is straightforward, and thanks to a streamlined regulatory regime and its double-taxation treaties with more than 80 countries, thousands of foreign companies already operate in the capital Copenhagen.

Requirements for company formation in Denmark

  • The minimum share capital is approx €10,000 (DKK 80,000)
  • Minimum director is one.
  • A registered office is required.
  • An auditor to take care of the accounts needs to be appointed.
  • A certified accountant to do the daily book-keeping and accounting is also required.

What other types of company are there?

  • European Public Limited Company (SE) – minimum share capital €120,000 – subject to national company law but has the possibility to change the nationality of the company without liquidation and re-formation
  • European Economic Interest Grouping (EEIG) – a cross-border partnership comprising partners from European countries – no capital required, no requirements for separate financial accounts, partners taxed individually
  • Joint Venture - often established in the corporate form of an A/S or ApS
  • Sole Trader - no capital requirements - must submit financial reports to the tax authorities – these reports need not be audited

How easy is it to recruit staff?

The Danish labour force is highly skilled and well educated. Salary levels are high by EU standards but are in line with those elsewhere in the Nordic region. Recruitment can be achieved in consultation with the government employment offices or through the services of the various commercial employment agencies that exist. We can help you with recruitment, so please contact our office if you need further information.

What is the regulatory environment like?

Denmark has a liberal business climate to go alongside its liberal regulatory environment. In general there are no restrictions on investments, and capital and earnings can be freely repatriated.

Financial incentives and banking facilities

Full banking services are available which offer a complete range of commercial banking facilities, including those related to acquisitions and the raising of capital. Foreign investors are treated on an equal footing with domestic investors as far as financing is concerned. Contact us to find out how we can help you to open a bank account in Denmark.

Regarding financial incentives, there are limited ones for businesses setting up in regions of Denmark that are designated by the EU as special development zones. In certain circumstances, incentives are also available to small and medium sized enterprises for research and development, export and skills development and clean environmental technology.

For more information on this and any other issues concerning company incorporation in Denmark, including taxes and VAT, please feel free to call us on 0033 (0)1 53 57 49 10 or email us from our contact page and we’d be happy to help you.