How to start a business in Denmark
Did you know that Denmark is top for doing business easily? Setting up a company here only takes a day. Every year, more than 40,000 new companies start in Denmark. So, if you want to grow your business or start fresh, Denmark is a great place with easy steps.
Starting a business in Denmark means taking care of a few things. First, go to virk.dk, the Danish Business Authority’s website, and register your business. With your MitID, as a sole proprietorship, this is easy to do online. Make sure to guess your business profits or losses and set a NemKonto for your business. This account should be different from your personal one.
If your business changes its name, location, or starts hiring, update this on virk.dk. The Danish Tax Agency offers help for new sole proprietors, with webinars and guidance. You can find more help at startvaekst.virk.dk, including loans and loan guarantees from the Danish Growth Fund. They aim to support new businesses.
Key Takeaways
- Denmark is very welcoming for business with a simple registration process.
- With a MitID, sole proprietors can easily sign up online.
- Having a separate NemKonto for your business is necessary.
- The Danish Tax Agency offers support for new business owners.
- The Danish Growth Fund gives financial help for starting businesses.
Understanding the Danish Business Authority
The Danish Business Authority is key in managing business-related rules and services in Denmark. It oversees the country’s business environment. Think of it as the UK’s Companies House but for Denmark.
Overview of the Danish Business Authority’s Role
This group helps both locals and foreigners get started in business. They provide info on everything from public services to keeping digital records. Their goal is to make it easy for companies to operate in Denmark.
Accessing the Central Business Register
The Central Business Register (CVR) is at the core of their work. It’s a database with info on all registered companies. Here, you can find a company’s legal details, when it was started, and how to reach it. Entrepreneurs use this to look up other businesses or start their own.
Choosing the Right Business Entity
When you start a business in Denmark, you’ve many types to pick from. It’s key to know what each one offers. This helps you choose the best for your business.
Public Limited Liability Company (A/S)
An Aktieselskab (A/S) is one common choice in Denmark. It’s great for businesses wanting to get money from the public. A/S companies have to start with at least 400,000 DKK. They follow strict rules for reporting and how they are run.
Private Limited Liability Company (ApS)
If you like more control, consider Anpartsselskab (ApS). ApS companies don’t need as much starting money, just 40,000 DKK. You get more say in how you manage and own your business. This is unlike the A/S.
Limited Partnership Company (P/S)
A Kommanditselskab (P/S) mixes a partnership with a limited company. One partner can have all the risk, but the others don’t risk more than they invest.
Cooperative Society with Limited Liability (A.M.B.A.)
Andelsselskab med begrænset ansvar (A.M.B.A.) means you and others own it together. This is good for farming, homes, and finance. It lets members have a say and benefit together.
Association with Limited Liability
Forening med begrænset ansvar can do business and do good. They work towards a goal, like helping an industry or cause.
Sole Proprietorship
If you want to be your own boss, try Enkeltmandsvirksomhed. It’s just you, being fully responsible for the business’s ups and downs.
Limited Partnership (K/S)
Have a Kommanditselskab (K/S) if you want to share the load. One partner takes the big financial risks, the others less so.
Partnership (I/S)
Interessentskab (I/S) is for working together. It can be with others, and you share the business’s wins, losses, and debts.
Picking the right business entity in Denmark is crucial. Foreign entrepreneurs need to match their goals and means with the right structure. Knowing all about each choice is key to a smooth start in the Danish market.
Registering Your Business with the Danish Business Authority
Setting up a company in Denmark is quick and simple, often taking just hours. Start by picking the business type you want. For companies with limited liability (A/S or ApS), you must prepare a Memorandum of Association and Articles of Association. This part can be done in English. You must also put the needed share capital in the company’s bank account.
After preparing these documents, you can register your company online with the Danish Business Authority. Within minutes, you’ll get a unique Company Register Number (CVR). The business registration fee is less than €100, not including legal costs.
This online company registration process lets you get the CVR number quickly. It’s a smooth way to establish your business in Denmark. This easy process lets entrepreneurs focus on building their businesses in the Danish market.
How to Start a Business in Denmark
If you’re starting fresh in Denmark and not from the EU, you might need a work and residence permit. This is because to get going, you’ll need a NemID. This Danish digital signature is a must, but you can only get it with a permit.
Obtaining a Work and Residence Permit
To launch your business in Denmark, as a non-EU entrepreneur, a work and residence permit is crucial. You can get it through the Startup Denmark program or a business residence permit. Either way, you must show your business idea is solid and meets certain guidelines.
Registering with the Danish Business Authority
After getting your permit, the next step is to register your company with the Danish Business Authority. You’ll need to do this online and get a unique CVR number. Once you’re registered, your info is shared with the tax office.
Obtaining a NemID (Danish Digital Signature)
Now, with your permit, you can go after a NemID. This digital signature is Denmark’s key for doing business online with the government. It’s a vital part of setting up shop in Denmark.
Required Documents for Business Registration
To start a limited liability company (A/S or ApS) in Denmark, you need some important documents. These include the Memorandum of Association, Articles of Association, and proof of the needed share capital deposit. These required documents for company registration in Denmark are vital for starting your business.
Memorandum of Association
The Memorandum of Association tells basic details about your company. It includes the name, address, and what you do. This document can be in English and doesn’t need a notary.
Articles of Association
The Articles of Association are more detailed. They talk about how your company is run and decide on things. They also cover rights and other rules. These articles of association can be in English too.
Share Capital Deposit
Before your company is set up, you must put in the share capital amount. For an A/S, it’s at least 400,000 DKK. For an ApS, it’s 40,000 DKK. This money goes in the company’s bank or a special lawyer’s account.
With the required documents for company registration in Denmark ready, you can start the process. You do this online with the Danish Business Authority. Plus, you’ll get a Company Register Number (CVR).
Registering for VAT and Tax
After your company is registered with the Danish Business Authority, you must also sign up for VAT and taxes. The Danish Customs and Tax Administration, or SKAT, looks after tax rules in Denmark. They offer a handbook, “Tax in Denmark,” to aid newcomers and those not fluent in Danish to understand the Danish tax system.
Understanding the Danish Tax System
The Danish tax system stands out for its clear rules and organizations. This makes it easy for businesses to follow their tax duties. SKAT’s guide covers everything, from personal income tax to how companies are taxed, social security fees, and how to register for VAT in Denmark.
Corporate Tax in Denmark
Denmark’s corporate tax rate is a modest 22%, lower than the OECD average. This low tax rate attracts entrepreneurs and foreign investors. Setting up your business in Denmark means understanding the different tax treatments for various legal forms.
Knowing the Danish tax rules and corporate tax rates is crucial. It ensures your company starts off right, compliant and legal. This way, you can concentrate on growing your business in Denmark.
Resources and Support for New Businesses
If you’re an entrepreneur eyeing Denmark to start or grow a business, you’re in luck. Several groups and programs offer their help. They aim to guide you through the Danish market to ensure your business takes off well.
Copenhagen Business Hub
The heart of Denmark, Copenhagen, houses a great hub for new businesses. The Copenhagen Business Hub provides many helpful services. This includes workshops, business advice, and connections with experts and partners. They focus on aiding new startups in Denmark to get up and running successfully.
Work in Denmark
The Work in Denmark website is key for foreign entrepreneurs wanting to move their businesses there. It’s packed with info on Danish business ways, laws, and tips for success. It also guides on getting work permits and finding jobs in Denmark. This helps make the whole transition smoother for new arrivals.
Startup Denmark
Startup Denmark, a project by the government, is working to draw global innovators to start businesses there. It offers a special visa and connects you with funders, mentors, and more. Aimed at enhancing the [business relocation to Denmark] appeal, it makes it easier and more inviting for entrepreneurs to choose Denmark.
Managing Your Business Finances with Wise Business
In Denmark, handling finances across different currencies is crucial. Wise Business offers a solution. You get multi-currency accounts for over 40 currencies. It uses the mid-market exchange rates with fees as low as 0.43%.
Local Bank Details
With Wise Business, you also receive local bank details for major currencies. This is great for getting paid by customers. It makes local banking for businesses easier. You can get payments in your clients’ preferred currencies without hassle.
Batch Payments and Accounting Integrations
Using Wise Business means you have access to many helpful tools. These include linked debit and expense cards, batch payment tools, and integrations with cloud accounting software. They’re designed to make managing your finances simpler. This helps you save time and reduces the burden of business accounting in Denmark.
Conclusion
Starting a business in Denmark can be easy, especially if you have a connection to the EU/EEA like an existing company or a Danish permit. It’s all about knowing your options, what you need to do, noting the taxes, and using available help. This way, foreign business owners can set up their companies well in Denmark.
Tools like Wise Business make handling money and deals across borders simpler. This lets you put more energy into making your business thrive in Denmark. With the right groundwork and help, doing business in Denmark becomes a lot more doable. You’ll be on your way to success in this lively and wealth building nation.
In general, Denmark is kind to those wanting to start or expand their business. It has a stable economy, a skilled workforce, and plenty of help for new ventures. By using these strengths, entrepreneurs can set up their businesses for steady growth in Denmark.
