How to Start a Business in Denmark — CVR, Company Types & Registration

How to Start a Business in Denmark

Updated By exploringdenmark

Denmark consistently ranks among the easiest countries to start a business. You can register a sole proprietorship in minutes through virk.dk. But choosing the right structure, handling VAT, and setting up properly from the start saves headaches later.

YOUR IDEA REGISTER ON VIRK.DK1. Choose company type2. Register with MitID3. Receive CVR number CVR12345678You’re in business Sole proprietorship: same day · ApS: 1–2 weeks Requires CPR + MitID + Danish address

Overview

Starting a business in Denmark requires a CPR number, MitID, and a Danish address. The registration itself happens online through virk.dk — Denmark’s business portal. Once registered, you receive a CVR number (the Danish business registration number), which lets you invoice, hire, and operate legally.

Company types

The two most common structures for internationals:

Enkeltmandsvirksomhed (sole proprietorship)

The simplest form. You are the business — no separation between personal and business assets. Best for freelancers, consultants, and small operations.

  • Capital requirement: None
  • Registration: Free, instant on virk.dk
  • Liability: Unlimited personal liability — your personal assets are at risk
  • Tax: Business income is taxed as personal income (B-income). You file quarterly estimated tax payments (B-skat).
  • Best for: Freelancers, consultants, small side businesses

ApS (Anpartsselskab — private limited company)

A separate legal entity. Your personal assets are protected. Required for larger operations, hiring employees, or raising investment.

  • Capital requirement: Minimum 40,000 DKK share capital (deposited in a business bank account)
  • Registration: 670 DKK fee, takes 1–2 weeks via virk.dk
  • Liability: Limited to the company’s assets — personal assets protected
  • Tax: Corporate tax at 22%. Salary to yourself is taxed as regular income. Dividends taxed separately.
  • Best for: Businesses with employees, revenue over ~500k DKK/year, or anyone wanting liability protection

Not sure which to choose? Start as a sole proprietorship. If the business grows, you can convert to an ApS later. Most freelancers and consultants never need an ApS.

How to register (CVR)

Go to virk.dk

Navigate to virk.dk and select “Start virksomhed” (Start a business). The site has an English version.

Log in with MitID

You need a Danish MitID linked to your CPR number.

Choose your company type

Select enkeltmandsvirksomhed (sole proprietorship) or ApS. Fill in business name, address, industry code (NACE), and start date.

Register for VAT (if applicable)

If you expect revenue above 50,000 DKK/year, you must register for VAT (moms) during the registration process.

Receive your CVR number

Sole proprietorships: often same day. ApS: 1–2 weeks after capital verification. Your CVR number appears on all invoices and official documents.

Tax and VAT setup

  • Sole proprietors: Report business income as B-income on your personal tax return. Pay quarterly B-skat (estimated tax) to SKAT. You also pay AM-bidrag (8%) on business income.
  • ApS: The company pays 22% corporate tax on profits. File an annual corporate tax return. Pay yourself a salary (taxed as A-income) and/or dividends (taxed at 27%/42%).
  • VAT: If registered, charge 25% moms on your invoices. File VAT returns quarterly (or monthly for larger businesses). You can deduct input VAT on business expenses. See the VAT guide.

Business bank account

You need a separate business bank account — especially for ApS companies (mandatory for the share capital deposit). Sole proprietors are not legally required to have a separate account, but it makes bookkeeping much easier. Most Danish banks (Danske Bank, Nordea, Lunar) offer business accounts. Fees: 50–200 DKK/month.

Hiring employees

If you hire, you must: register as an employer with SKAT, withhold A-skat and AM-bidrag from employee salaries, pay employer pension contributions (if your agreement requires it), and report salaries monthly through eIndkomst. Most businesses use a payroll service (lønbureau) like Danløn or Zenegy to handle this.

Common problems

I’m a non-EU citizen — can I start a business?

You need a residence permit that allows self-employment. Standard work permits (Pay Limit, Positive List) do not allow self-employment. Consider the Start-up Denmark visa or check if your permit has self-employment provisions.

I forgot to register for VAT

If your revenue exceeds 50,000 DKK/year and you are not VAT-registered, you are in breach. Register immediately on virk.dk and contact SKAT to rectify. Backdated VAT can be complex.

Bookkeeping is overwhelming

Use accounting software (Dinero is popular and free for sole proprietors, Billy and e-conomic for ApS). Consider hiring an accountant (revisor) — especially for ApS companies where annual accounts must be filed.

Questions and answers

Can I run a business alongside my employment?

Yes — many Danes have side businesses. Check your employment contract for any non-compete or moonlighting clauses. Business income is taxed as B-income on top of your salary.

Do I need an accountant?

Not legally required for sole proprietorships. Strongly recommended for ApS (annual accounts must be filed with Erhvervsstyrelsen). A good accountant costs 5,000–20,000 DKK/year for a small business.

What about business insurance?

Not legally required for all business types, but professional liability insurance (erhvervsansvarsforsikring) is recommended. Required in some regulated professions.

Sources

  1. Virk.dk — business registration portal.
  2. Erhvervsstyrelsen — Danish Business Authority.
  3. SKAT — business tax obligations.