How to start a business in Denmark

Considering starting a new Danish business, or expanding your UK or EU/EEA registered company to trade in Denmark? The country is attractive to founders looking for inroads into European markets.

However, there are a number of practical setup steps to follow, including registration, tax, VAT, banking and permits. You’ll also have challenges to overcome.

This guide is here to help, with an overview of how to start a business in Denmark as a UK founder. This includes all of the processes and paperwork you’ll need to understand, from CVR numbers to registering with the Danish Business Authority.

Plus, we’ll show you how Wise Business can be a smart solution to handle your business finances in Denmark and wherever else your ambitions might take you.

💡Learn more about Wise Business

How to start a business in Denmark - Step-by-step

If you don’t already have a business registered in an EU or EEA company you may find you need to apply for a work and residence permit before you can set up your Danish business.

The reason you may need a work or residence permit to set up your Danish business is that the Danish Business Authority (DBA) will require you to have a NemID, or a Danish digital signature, which can be obtained by getting a residence or work permit in the country. Once you have this, the process is fairly fast and easy to get underway.

If you have an EU/EEA business, or have your permit already, the steps involved in starting a business in Denmark run like this:

1. Decide whether you’re starting a Danish business or expanding an existing UK business.
2. Choose the right business structure
3. Prepare the documents needed for registration.
4. Register the company on the Business in Denmark or virk.dk website
5. Get a CVR number - this is a unique 8-digit code assigned to all registered companies and organisations in Denmark
6. Set up MitID Erhverv and Digital Post for digital ID where required
7. Register for VAT, tax or employer obligations where needed
8. Set up a NemKonto, business bank account and business payment processes.
9. Check permits, licences or sector-specific rules.
10. Keep accounting records and file reports on time.

More detail on these steps below.

Choose a Danish business structure

There are several different types of business entities in Denmark, so you can pick the one that suits your specific requirements best. Your options typically include:

• Sole proprietorship
• Private limited liability company (ApS)
• Public limited liability company (A/S)
• Branch of a foreign company
• Partnership (I/S)

Register your business with Virk/Business in Denmark

Business rules, regulations and processes are overseen in Denmark by the Danish Business Authority. Here you’ll find the Central Business Register, which is the equivalent of the records held in the UK by Companies House.

You can also get information and guidance on accessing public services, regulations, digital bookkeeping, reporting and more.

The DBA created Virk.dk, a digital portal for citizens and companies to access government services, including business registration.

It is here that you’ll need to register your company, by accessing the self-service ‘Start Company’ service.

You’ll need the following details and documents to register online:¹

• A Danish social security number (CPR)
• A Danish eID 'MitID' or a foreign eID
• Proof of legal establishment (for Limited Liability Companies)
• Statutes and memorandums of association (for Limited Liability Companies with a registered office outside of the EU/EEA).

Once you’ve registered, you’ll get your CVR number.

What is a CVR number?

A CVR number (Central Business Register number) is a unique eight-digit identification code assigned to all registered companies and organisations in Denmark. It acts as the company’s legal and tax ID for contracts, invoices, and dealings with the Danish government.

CVR data is publicly available on the CVR portal.

MitID Erhverv, Digital Post and NemKonto

There are a few terms involved in Danish business setup and registration that UK founders may not be familiar with.

MitID Erhverv

MitID Erhverv is Denmark’s business digital ID solution and is used to access self-service tools. It’s a kind of digital ID for businesses, associations and public authorities in Denmark, enabling access to self-services and Digital Post.

Digital Post

All registered businesses in Denmark with a CVR number receive official public-authority messages digitally.

This happens through Digital Post, Denmark's official digital mailbox for secure communication between public authorities (like hospitals and municipalities), businesses, and citizens. It completely replaces physical mail for official correspondence, and requires a MitID to log in.

NemKonto

As well as setting up ordinary Danish business bank accounts, your new company will also need a NemKonto.

This is a bank account used by all public authorities in Denmark when they transfer money to your company, such as for VAT refunds, benefits and reimbursements. .

All companies in Denmark should have a NemKonto connected to their CVR number.

VAT and tax for businesses in Denmark

Your new business also needs to make sure it is registered for tax and VAT (known as moms in Denmark), where required.

Here’s what you need to know:

VAT

• Danish VAT (moms) is generally 25%²
• Businesses need to register for VAT at virk.dk if they trade goods or services above DKK 50,000 annually²
• If registered for VAT, businesses need to file VAT returns by the deadline, including zero declarations where relevant.

Corporate tax

According to the Danish Tax Agency, corporation tax is generally calculated based on taxable income. The corporate income tax rate in 2026 is 22%,³ but this is set to be lowered over the coming years.⁴

Sole trader tax

Tax treatment in Denmark depends on your business structure. It’s recommended to find information on sole trader tax from the Danish Tax Agency, an accountant or another qualified tax professional.

This is the case across the board, as tax and VAT rules depend on business structure, turnover, activities and whether the business has staff or cross-border activity. It’s best to check with the Danish Tax Agency or speak to a tax adviser if unsure.

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Hiring employees in Denmark

If you're hiring employees in Denmark, you need to follow the country’s employment laws and processes. Here’s what you need to know:¹

• You need to register with VIRK/DBA as an employer - if you have a Danish CVR/SE-number, you can do this online via the self-service portal
• You must deduct tax and labour market contributions from each wage payment
• You must declare and pay tax and labour market contributions to the Danish Tax Agency on a monthly basis.

It’s very important to check tax, employment law and payroll obligations before hiring.

Work and residence permits for UK founders

In Denmark, UK nationals are generally treated as non-EU/EEA nationals for residence/work permit purposes unless they have specific rights or status.

If you’re a UK founder wanting to move to Denmark to run the business, the first thing to do is check Danish immigration rules.

Permit rules can depend on nationality, residence status, business type and whether the founder will physically work in Denmark. Check New to Denmark or GOV.UK before making plans.

Expanding a UK business into Denmark

If your UK business is expanding into Europe, Denmark could be the ideal place to access the EU/EEA market.

However, there are some key considerations to bear in mind before starting your expansion plans:

• Decide whether to set up a Danish company, branch or trade cross-border
• Check whether your business activities will create Danish tax, VAT, employment or permanent establishment obligations
• Prepare branch/company documents where needed
• Check Danish customer invoicing and VAT requirements
• Plan how to pay Danish suppliers, contractors or staff
• Plan how to receive DKK/EUR/GBP payments
• Check whether you’ll need licences or sector-specific approvals.

Getting professional advice could be very useful at this stage.

Business banking and payments in Denmark

A key step to starting a business in Denmark is managing finances and payments. You’ll need a dedicated business bank account, as well as a NemKonto linked to your CVR number for receiving government and public sector payments.

You’ll also need to find reliable, cost-effective ways to pay suppliers and employees, and receive and manage payments in DKK, EUR and GBP.

For UK founders working between the UK and Denmark, international payment costs can become part of day-to-day operations. Compare transfer fees, exchange rates and account features before choosing how to move money between GBP, DKK and EUR.

Wise Business for UK founders expanding to Denmark

Setting up a Danish business could be an exciting way to expand your company - but you’ll need ways to manage your money across currencies with low feesand fair exchange rates.

Check out Wise Business for flexible, low cost multi-currency accounts you can open with just a phone.

Wise Business supports 40+ currencies to hold and exchange, with the mid-market exchange rate and low fees for whenever you need to convert between currencies.

If you’re running a UK business and expanding into Denmark, Wise Business can help you manage cross-border payments, pay suppliers and hold money across currencies.

This can be very useful when dealing with GBP, DKK and EUR costs, but you should still check Danish registration, tax, VAT and banking requirements separately.

With Wise Business, you can:

• 🌍 Send money to 70+ countries and pay overseas invoices at the mid-market exchange rate with low, transparent fees and no hidden exchange rate markups (product availability varies by region)
• 📥 Receive payments in 24 currencies and counting
• 💵 Get local account details for 8+ currencies, including USD and EUR, to let your customers pay in a currency they know and trust - convenience for them and peace of mind for you
• 💰 Hold money in 40+ currencies
• 🔁 Convert currencies anytime at the mid-market exchange rate with low, transparent fees
• ⚡ Use the batch payments tool to create and send up to 1,000 payments in a single transfer
• 👥 Run payroll and make international payments for up to 1,000 employees all over the world - including paying suppliers using local payment methods like ACH, SEPA, and Faster Payments
• 💳 Get business debit cards with 0.5% cashback for you and your team to keep track of team expenses and spend all over the world, with real-time visibility and categorisation. See full cashback terms and conditions
• 🏢 Manage cash in 55+ currencies across international offices from a single business account and move money between business accounts in seconds (exact speeds can vary depending on individual circumstances and may not be the same for all transactions)
• 🧾 Connect and sync every business transaction to your favourite accounting software, including Xero, Quickbooks, and more
• 🔐 Create your own payment approvals process to manage your team better with customised access for different team members, roles and permissions
• 📑 Create custom professional invoices and schedule invoice payments for future dates
• 📈 Earn variable returns on GBP, USD and EUR with Wise Interest (Capital at risk, growth not guaranteed. Your money is at risk if governments default or interest rates go negative. Rates vary by country and currency. Rates are variable. Visit Wise Interest to find out more)
• 🔗 Create payment links and QR codes to get paid easily (Card payment acceptance for new Wise Business customers is currently unavailable. Payment methods subject to eligibility and availability.)
• ⚙️ Automate payouts with the Wise API (comes with 24/7 customer support, a sandbox account to test integrations, API tokens, and clear documents on how to implement and make the most of our API)

Make the wise choice when selecting a business account for your domestic and global needs.

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Disclaimer: The UK Wise Business pricing structure is changed on 26/11/2025. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

FAQs

Let’s move onto a few common questions and answers about setting up a business in Denmark.

How much does it cost to start a business in Denmark?

The government fee for registering a company in Denmark is 670 DKK¹ - about 77 GBP at the time of writing.

This fee is waived for some business types, including sole proprietors, partnerships and associations.

Other fees may also apply depending on the type of entity and the sector, and you may also be required to deposit share capital as part of your business set up process.

Is it easy to start a business in Denmark?

If you have a Danish work and residence permit, or if you already have a business entity registered in the EU or EEA, opening a business is relatively easy to do in Denmark.

There’s also lots of help and guidance out there. Business in Denmark, Startup Denmark and Work in Denmark are all good starting points.

Is Denmark startup friendly?

Denmark is generally considered a good place for startups. Through Startup Denmark, the Danish government even offers a visa programme for non-EU nationals who want to found a startup in the country, to encourage more people to move there.

How to start a business in Denmark as a foreigner?

If you want to start a business in Denmark as a foreigner from a non EU/EEA country the chances are that you’ll need to check out the Danish Immigration Service options for work and residence permits.

There are several different routes depending on what you’ll be doing - coming as a startup founder or a trained professional, for example. If you’ve already got a business in the EU or EEA you may find the process is a little more straightforward.

Do I need a Danish business bank account?

Yes - you’ll need a business bank account to run an incorporated company in Denmark, as well as a NemKonto.

Sources used in this article:

1. Business in Denmark - Establish a business in Denmark
2. Skat.dk - Get started on VAT
3. Skat.dk - Introduction to companies and foundations
4. Schjodt - A new tax landscape: Key takeaways from Denmark's 2026 coalition agreement

Sources last checked: 02-Jul-2026