Denmark ApS Formation: CVR Registration & Danish Company Setup 2025

Denmark ApS Formation

Danish ApS (Anpartsselskab) is private limited company. Equivalent to UK Ltd, German GmbH. Most common structure for Danish SMEs and startups.

Minimum capital: DKK 40,000 (~€5,400). Lower than Germany (€25,000) but higher than Netherlands (€0.01). Must deposit before registration.

Formation Process - Virk.dk

Denmark offers streamlined online formation via Virk.dk (official business portal). Fully digital process, no notary required.

Step 1: Register for NemID/MitID (Danish digital signature). Foreign nationals can obtain at Danish embassy or upon arrival.

Step 2: Reserve company name via Virk.dk. Free check, integrated with formation process.

Step 3: Complete online formation form. Articles of association template provided. Standard fee: DKK 670.

Step 4: Open Danish bank account, deposit DKK 40,000 capital. Bank issues electronic confirmation to CVR (Central Business Register).

Step 5: CVR registration completes automatically. Receive CVR number (Danish tax/business ID). Processing: 7-14 business days.

IVS Alternative

Denmark offers IVS (Iværksætterselskab) - "startup company" with DKK 1 minimum capital. Designed for entrepreneurs with limited capital.

However, IVS must retain 25% of profits until DKK 40,000 accumulated (then convert to ApS). Cannot distribute dividends until conversion.

IVS seen as inferior, signals financial weakness. Most serious startups choose ApS despite higher capital requirement.

Name Requirements

Must include "ApS" or "Anpartsselskab". Name checked against CVR database automatically during online formation.

Cannot conflict with existing registrations or famous trademarks. Separate trademark search recommended with Danish Patent and Trademark Office.

Danish Language Optional

English company names fully acceptable. Denmark extremely English-proficient (90%+ speak English fluently).

Business conducted in English seamlessly in Copenhagen, Aarhus, other major cities. No translation requirements for international operations.

Tax Structure - 22% Flat

Corporate income tax: 22% flat rate on all profits. No reduced rate for small companies. Simple, predictable.

Among EU's lowest rates. Compare: Sweden 20.6%, Norway 22%, Finland 20%, Germany 30%, France 25%.

Dividend withholding tax: 27% for Danish residents. Tax treaties reduce for foreign shareholders. EU parent companies may qualify for 0%.

High Personal Income Tax

While corporate tax low (22%), personal income tax very high (up to 56% marginal rate). Top rate kicks in at ~DKK 600,000 (~€80,000).

Tax planning: Keep profits in company (reinvest), take modest salary, distribute dividends strategically. High personal tax discourages large salaries.

Annual Compliance

Annual accounts: Required for all ApS. Small companies can file abbreviated version. Filed electronically via Virk.dk (public).

Corporate tax return: Due 6 months after fiscal year end. Most use calendar year (file by June 30). Extensions possible.

General assembly: Annual meeting required. Minutes kept but not filed publicly.

Audit: Required if two of three thresholds exceeded (DKK 9M revenue, DKK 4.5M assets, 12 employees). Many small ApS exempt.

Director Requirements

Minimum one director. No Danish residency required but EU/EEA residency strongly preferred for banking, operations.

Director needs CPR number (Danish personal ID) or CVR number. Foreign directors can operate with passport initially.

Board Structure

Small ApS can have sole director. Larger companies often have board (bestyrelse) plus CEO (direktør) separation.

Nordic governance culture: Transparency, flat hierarchies, consensus decision-making. Less hierarchical than Germany, more formal than Netherlands.

Denmark vs Other Nordics

Denmark DKK 40,000 (~€5,400) vs Sweden SEK 25,000 (~€2,200): Sweden lower capital but higher tax (20.6% vs 22%, minimal difference).

Denmark 22% tax vs Norway 22%: Same rate but Norway not EU (EEA only), Denmark better for EU market access.

Copenhagen Tech Ecosystem

Copenhagen ranked top 10 European startup hubs. Strong fintech (Lunar, Pleo), health tech, cleantech.

Danish unicorns: Zendesk (customer service), Unity Technologies (gaming engine), Trustpilot (reviews). Successful exit track record attracts capital.

Venture capital: Active Danish VC scene. Government support (Vækstfonden - Growth Fund). Annual Techfestival, Startupbootcamp.

English Language Advantage

Denmark highest English proficiency in EU (EF English Proficiency Index #3 globally, #1 non-native).

Entire business ecosystem operates in English. Contracts, negotiations, government services available in English.

Easier for international entrepreneurs than Germany, France, Spain, Italy. Similar to Netherlands but with even higher English proficiency.

Nordic Work Culture

Denmark famous for work-life balance. 37-hour work week standard. 5 weeks paid vacation mandatory.

Flat hierarchies, consensus-driven. "Hygge" culture values well-being, collaboration over competition.

Trade-off: High productivity per hour worked but strict work hour limits. Expensive labor but highly skilled, motivated workforce.

High Cost Reality

Denmark among EU's most expensive countries. Copenhagen cost of living on par with London, higher than Berlin/Amsterdam.

Salaries: Software developer DKK 45,000-75,000/month (~€6,050-10,075). Higher than most EU but offset by productivity, quality.

Office space: Copenhagen CBD DKK 2,000-3,500/sqm/year (~€270-470). Expensive but world-class infrastructure.

Why High Costs Justified

Denmark consistently ranks top 3 globally for ease of doing business, competitiveness, innovation index.

Digital government (best in world). Low corruption. Strong rule of law. Efficient bureaucracy. High trust society.

Productivity offsets costs. Danish workers among world's most productive. Quality over quantity approach.

Foreign Ownership

No restrictions on foreign ownership. 100% foreign ownership standard. However, regulated industries require local licensing.

Virtual office acceptable for registration but substance requirements for tax residency (office, employees, management).

Banking

Danish banks (Danske Bank, Nordea, Jyske Bank) require NemID/MitID, Danish address. In-person meeting often required.

Non-resident account opening challenging. Solutions: Appoint Danish-resident director, use international banks (Saxo Bank), or fintech (Revolut, Wise).

Common Mistakes

Underestimating costs: Denmark expensive. Budget 30-50% more than Germany/Netherlands for same operations.

Not understanding personal tax impact: 56% marginal rate hits at €80,000 salary. Structure compensation carefully (salary + dividends).

Expecting 24/7 hustle culture: Nordic work-life balance sacred. Employees work 37 hours, take full vacation. Plan staffing accordingly.

When Denmark Makes Sense

Choose Danish ApS if: Cleantech/sustainability focus, fintech/payments, health tech, Nordic market expansion, value quality of life over low costs, targeting Scandinavian consumers.

Best for: SaaS/software (high productivity workforce), cleantech (Denmark global leader), design/creative, fintech, health tech, businesses valuing innovation ecosystem over cost.

Consider alternatives if: Very cost-sensitive (Poland, Portugal lower), need lowest tax (Ireland 12.5%, Cyprus 12.5%), want bigger market (Germany 83M vs Denmark 6M).

Cleantech Leadership

Denmark global leader in wind energy (Vestas, Ørsted). 50% of electricity from wind. Carbon neutral goal by 2050.

Cleantech startups benefit from government support, industry ecosystem, sustainability focus.

Quality of Life

Denmark consistently ranks top 3 for happiness (World Happiness Report), quality of life, work-life balance.

Attracts international talent despite high costs, taxes. Copenhagen lifestyle compensates for financial costs.

Trademark Lens verifies Danish company name availability before DKK 4,000-8,000 (~€540-1,075) formation costs plus DKK 40,000 capital.