A Step-by-Step Guide to Starting a Business in Denmark
If you’re planning to start a new business in Denmark or expand your UK or EU/EEA-registered company to operate more efficiently in Denmark, you’ll need to register your organization with the Danish Business Authority. Fortunately, if you already have an EU/EEA business or possess a Danish work and residence permit, this process is relatively straightforward.
This guide will walk you through the steps of starting a business in Denmark as a foreigner, including the necessary procedures and documentation. Additionally, we’ll introduce Wise Business as an effective solution for managing your finances in Denmark and beyond.
Doing Business in Denmark
Before diving into the details of starting a business in Denmark, let’s consider why Denmark could be an ideal location for your business.
Danish business culture is known for its emphasis on equality among employees and a relaxed, informal work environment that encourages a healthy work-life balance. The Danish government actively supports innovative entrepreneurs and startups, making the country an attractive destination for business ventures.
Denmark boasts a diverse economy with strong sectors in services, construction, IT, manufacturing, agriculture, and more. If you have a viable business idea or an existing business that could benefit from international expansion, Denmark might be the perfect place for you.
Danish Business Authority
The Danish Business Authority oversees business regulations, processes, and the Central Business Register, which is similar to the UK’s Companies House. The Authority also provides guidance on public services, regulations, digital bookkeeping, reporting, and more.
Denmark Company Register
Denmark offers several types of business entities, allowing you to choose the one that best fits your needs. The available options 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)
Each business type has specific requirements and benefits, so it’s essential to understand which one aligns with your business goals.
How to Start a Business in Denmark – Step-by-Step
If you do not have a business registered in the EU or EEA, you may need to apply for a work and residence permit before establishing a business in Denmark. However, if you already have an EU/EEA business, the process is simpler. You’ll need to register online with the Danish Business Authority and obtain a CVR number, which is your business registration number. This information will then be automatically forwarded to the tax authorities.
A work or residence permit may be necessary because the Danish Business Authority requires a NemID (Danish digital signature), which can be obtained after securing a residence or work permit. Once you have these prerequisites, the registration process is relatively quick.
To set up an A/S or ApS business entity, you’ll need the following:
- Memorandum of Association
- Articles of Association
- Share Capital deposit (amount depends on entity type)
These documents can be drafted in English, and no notary approval is required.
FAQs About Starting 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 (approximately £77). This fee is waived for certain business types, including sole proprietorships, partnerships, and associations. Other fees may apply based on the entity type and sector, and you may also need to deposit share capital as part of the registration process.
Is it easy to start a business in Denmark?
Yes, if you have a Danish work and residence permit or an EU/EEA-registered business, setting up a business in Denmark is straightforward. There are many resources available to help, such as the Copenhagen Business Hub for training and support.
Is Denmark startup-friendly?
Denmark is known for being supportive of startups, and the government offers a visa program for non-EU nationals who want to establish startups in the country.
Managing Your Danish Company’s Finances with Wise Business
Expanding your business to Denmark can be an exciting opportunity, but managing finances across currencies can be challenging. Wise Business offers a flexible, low-cost multi-currency account, allowing you to hold and exchange over 40 currencies with low fees and the mid-market exchange rate.
With Wise Business, you can obtain local bank details for major currencies, making it easy to receive payments from customers or platforms like Stripe and Amazon. The account also includes linked debit and expense cards, multi-user access, batch payment tools, and cloud accounting integrations.
To open a Wise Business account:
- Download the Wise app or visit the Wise website.
- Register and follow the prompts to apply for a business account.
- Provide your personal and contact information.
- Upload the necessary documents.
- Pay a one-time fee to register your account and obtain a linked payment card if needed.
Once your account is verified, you can start transacting immediately.
This guide should help you navigate the process of starting a business in Denmark. Once you’ve chosen the right path, Wise Business can help you manage your company’s finances efficiently, ensuring you minimize fees and costs when converting between currencies.