Start Business in Denmark

by Admin Business

If you’re planning to start a new business in Denmark, or expand your UK or EU/EEA registered company to make business operations in Denmark more straightforward, you’ll need to register your organization with the Danish Business Authority. The good news is that if you already have an EU/EEA business or a Danish work and residence permit, the process is relatively simple.

This guide will take you through the steps required to start a business in Denmark as a foreigner, covering the necessary procedures and paperwork. We’ll also introduce Wise Business as a helpful solution for managing your finances in Denmark and beyond, wherever your business ventures may lead.

Why Start a Business in Denmark?

Before diving into the specifics of setting up a business in Denmark, it’s worth exploring the benefits of doing business there.

Denmark’s business culture is renowned for promoting employee equality and fostering a relaxed work environment. A good work-life balance is highly valued, and the Danish authorities actively encourage innovative entrepreneurs and startups to establish themselves in the country.

Economically, Denmark offers a diverse range of industries, with a significant portion of the economy driven by services, as well as sectors such as construction, IT, manufacturing, and agriculture. If you have a promising business idea or want to expand an existing company internationally, Denmark could be an ideal market.

Danish Business Authority

Business regulations in Denmark are overseen by the Danish Business Authority, which manages the Central Business Register. This is comparable to the UK’s Companies House. The Danish Business Authority also provides resources and advice on accessing public services, digital bookkeeping, reporting, and complying with regulations.

Denmark’s Company Register

Denmark offers various types of business entities to choose from, depending on your needs. These include:

  • 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 take a closer look at a few of these options.

Public Limited Liability Company (A/S)

An A/S can be established by a single shareholder through a share capital deposit. Shareholders are not personally responsible for the company’s obligations, and shares can be publicly traded or distributed among members.

Private Limited Liability Company (ApS)

An ApS also requires only one shareholder, who does not need to be a Danish resident. However, a minimum share capital is necessary. Shares in an ApS are non-transferable and non-negotiable, and shareholders’ liability is limited to their individual contributions.

Limited Partnership Company (P/S)

A P/S is structured like a limited partnership but must comply with the rules of a limited liability company under Danish law. It requires a minimum share capital and is overseen by an executive board along with either a board of directors or a supervisory board.

Each business type offers unique advantages, and the Danish authorities provide detailed online resources to help guide your decision-making process.