Starting a Sole Proprietorship

The one-line versionAn enkeltmandsvirksomhed (sole proprietorship) is the easiest business form: quick to register, minimal admin, but you and the business are legally the same - your personal assets are exposed.

What it is

An enkeltmandsvirksomhed (sole proprietorship) is the simplest way to run a business in Denmark. One owner, minimal setup, and no capital requirement. You register at virk.dk with MitID and get a CVR number. It suits freelancers, consultants and small one-person operations.

The trade-off: simplicity vs liability

	Sole proprietorship	ApS (limited company)
Setup	Free, fast, minimal admin	Requires capital (DKK 20,000) and more admin
Liability	Unlimited - personal assets at risk	Limited to the company
Tax	Profit taxed as your personal income	Company pays 22% corporate tax
Best for	Solo freelancers, low-risk work	Growth, employees, higher risk

Unlimited liability is the real catchWith a sole proprietorship, you and the business are legally one. If the business owes money, your personal assets are on the line. For low-risk consulting this is usually fine; for anything with real financial exposure, consider an ApS.

Tax treatment

Profit is taxed as your personal income at ordinary rates, plus 8% AM-bidrag. Two optional schemes can help: the virksomhedsordning (business tax scheme) lets you retain profit in the business at a lower rate and smooth income, and the kapitalafkastordning is a simpler alternative. Both are worth an accountant's advice once you have steady profit.

Start simple, upgrade laterMany people begin as a sole proprietorship for its low friction, then convert to an ApS once revenue, risk or employees justify the extra structure and protection. You are not locked in.

Getting started

Register the business and CVR free at virk.dk.
Register for moms if turnover will exceed DKK 50,000 - see moms.
Open a dedicated business account and keep clean records.
Update your forskudsopgorelse so tax on the profit is withheld sensibly.

Common questions

Is there a minimum capital?

No - a sole proprietorship needs no start capital, unlike an ApS which requires DKK 20,000.

Am I personally liable?

Yes - fully. You and the business are the same legal person, so business debts reach your personal assets.

When should I switch to an ApS?

When risk, revenue or hiring make limited liability and corporate structure worthwhile. Many start solo and convert later.

Verified July 2026 against official sources: borger.dk, the Barsel Act (Barselsloven), the Salaried Employees Act (Funktionaerloven), virk.dk and skat.dk. Figures are 2026 levels and reset each January. General information, not legal advice - see our editorial policy.

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