How to start a business in Denmark

If you’re considering starting a new Danis business - or expanding your UK or EU/EEA registered company to make doing business in Denmark easier - you’ll need to get your organisation entered to the Denmark company register, via the Danish Business Authority. The good news is that this process is very easy if you have an EU/EEA business already, or if you have a Danish work and residence permit.

This guide walks through how to start a business in Denmark as a foreigner, including the processes and paperwork you’ll need to understand. Plus we’ll introduce Wise Business as a smart solution to handle your business finances in Denmark and wherever else your ambitions might take you.

💡Learn more about Wise Business

Doing business in Denmark

Before we move into how to start a business in Denmark in detail, let’s consider why you might want to.

Danish business culture is known to be very focused on equality of employees, with an informal approach which allows individuals to work in a more relaxed way. Generally, having a decent work/life balance is viewed as important, and the Danish authority encourages innovative entrepreneurs and startups to base themselves in the country.

For the economy overall, Denmark has a very broad range of industry sectors, with the service industries contributing a large share, alongside construction, IT, manufacturing, agriculture and more¹. This means that if you have a viable business idea, or an existing business which could find a foothold overseas, Denmark may be the perfect place for you.

Danish business authority

Business rules, regulations and processes are overseen in Denmark by the Danish Business Authority². 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.

Denmark company register

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 include³:

• Public limited liability company (A/S)
• Private limited liability company (ApS)
• Limited partnership company (P/S)
• Cooperative society with limited liability (A.M.B.A.)
• Association with limited liability
• Sole proprietorship
• Limited partnership (K/S)
• Partnership (I/S)

Let’s look at each in a little more detail - there’s also lots of handy information provided online by Danish authorities which can help guide you through your options.

Public limited liability company (A/S)

A single shareholder can start an A/S by providing a share capital deposit. Shareholders in an A/S aren’t liable for the company’s obligations, and shares can be publicly traded or shared with company members.

Private limited liability company (ApS)

An ApS only requires a single shareholder, and that person isn’t required to be a Danish citizen. However, an ApS does require minimum share capital. Shares within an ApS are non-transferable and non-negotiable. Shareholders are only liable up to their personal contribution.

Limited partnership company (P/S)

Partnership companies are set up like a limited partnership, but must follow the same rules as a limited company in terms of company law. A minimum share capital is required, and companies like this also need to be overseen by an executive board and a board of directors or a supervisory board.

Cooperative society with limited liability (A.M.B.A.)

Cooperative societies which have limited liability for the entity founders are also an option in Danish company law. This isn’t a structure which has an exact match in UK entity types, so if this is one you’re considering you’ll need to make sure you’re very clear on how the structure functions to avoid surprises later.

Association with limited liability

Under Danish laws there are several different types of association business structure available. To open an association with limited liability it’s mandatory to register with the Danish Business Authority - registration isn’t necessary for some association types, so if this is the sort of Danish entity you intend to set up it’s worth getting advice to make sure you pick the right format for your specific needs.

Sole proprietorship

You can also set up a company on your own in Denmark as a sole proprietor⁴. Sole proprietors have full liability for the company and are registered with tax authorities if they have employees or are involved in trading. There are no capital requirements for this business type.

Limited partnership (K/S)

A limited partnership requires at least two partners, however in a K/S at least one partner may have limited liability for the company’s obligations. A K/S must be registered with the Danish trade register.

Partnership (I/S)

A partnership must have at least two founding members, all of whom are fully liable for company obligations. Partnerships must be listed in the Danish trade register.

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 business⁵.

If you already have an EU/EEA business the process is likely to be easier - you’ll just need to register online with the Danish Business Authority, and get a CVR number - your business registration number⁶. Once you have this, your information will be automatically passed to the tax authorities for convenience.

The reason you may need a work or residence permit to set up your Danish business is that the 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.

Once you’ve established you’re eligible to set up a business in Denmark, the process should be pretty quick. To set up an A/S or ApS business entity you’ll need:

• Memorandum of Association
• Articles of Association
• Share Capital to deposit based on entity type

Both can be drafted in English and there’s no need to involve a notary to approve the documents⁷.

Setting up a business in Denmark - 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 an A/S or ApS business is 670 DKK - 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.

Check below the current conversion rate between GBP and DKK.

Wise Business account is a handy tool for UK business expanding abroad. Once you set up your business in Denmark you can easily convert British Pounds to Danish Krone to hold money on the Danish currency or set payments like a local. All conversion is done based on the mid-market exchange rate with low and transparent fees.

Get started with Wise Business 🚀

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 easy to do in Denmark.

There’s also lots of help and guidance out there. If you’re heading for the capital, check out Copenhagen Business Hub⁸ for training, counselling and support.

If you need to learn more about Danish business etiquette, check out the resources over on the Work in Denmark⁹ website. And if you’re thinking of bringing your startup to Denmark, Startup Denmark¹⁰ could have exactly what you need.

Is Denmark startup friendly?

Denmark is generally considered a good place for startups, and the Danish government offers a visa programme for non EU nationals who want to found a startup in the country, to encourage more people to move there¹¹.

Check our guide on how to do international market research for a startup

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 Service¹² 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.

Manage your Danish Company's finances with Wise Business

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 fees and 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 from 0.43%¹³ whenever you need to convert between currencies.

You’ll get local bank details for a selection of major currencies which you can use to get paid by customers or through PSPs like Stripe and marketplaces like Amazon, plus linked debit and expense cards, multi-user access, batch payment tools and cloud accounting integrations. Here’s how to register a Wise Business account in just a few simple steps:

1. Download the Wise app or head to the Wise desktop site
2. Tap Register and follow the prompts to apply for a business account
3. Add your personal and contact information
4. Upload the documents needed which are detailed online and in this Wise Business bank account requirements guide
5. Pay the one time fee to register your account and get a linked payment card if you need one
6. Once your account is verified you can start transacting - your account will be live in the Wise app, your physical card will be posted to you, and you can get a digital card right away for mobile spending

Get started with Wise Business 🚀

Use this guide to plan your options for opening a business in Denmark as a Brit - and once you’ve decided which route to follow, check out Wise Business to make sure your company doesn’t lose out on fees and costs when exchanging between DKK, GBP and more.

Sources used in this article:

1. Statistics Denmark
2. Danish business authority
3. Danish government resources - business types
4. Danish government resources - sole proprietorship
5. Work in Denmark - open a business
6. Business in Denmark - open a Danish company if you already have an EU/EEA company
7. Ministry of foreign affairs - set up a business in Denmark
8. Copenhagen Business Hub
9. Work in Denmark
10. Startup Denmark
11. Danish startup visa programme
12. Danish Immigration Service
13. Pricing/fees: Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information

Sources last checked Dec 20, 2023