Denmark's registration system is entirely digital, run through the Virk.dk portal, and genuinely fast once you're through the door. That door, though, is MitID, Denmark's digital identity system, and getting one as a non-resident is the single biggest friction point for foreign founders. Here's what it takes to start a business in Denmark in 2026.
1. Which business structure fits you?
Before you register anything, it helps to know what you're actually choosing between.
- Enkeltmandsvirksomhed (sole proprietorship). No capital requirement, quick to register, and you're personally liable for business debts. Profit is taxed as personal income.
- ApS (Anpartsselskab). A private limited company, Denmark's equivalent of an LLC, with limited liability. Minimum share capital dropped from DKK 40,000 to DKK 20,000 in February 2025, one of the more competitive entry points in Northern Europe, though many founders still start with more to smooth relationships with Danish banks.
2. Register your business
Both structures register through Virk.dk, run by the Danish Business Authority (Erhvervsstyrelsen). Sole proprietorships cost nothing in capital and can typically be set up digitally in around 30 minutes once you have MitID ready. ApS formation requires the share capital to be deposited and confirmed before registration; the government registration fee itself is modest, around DKK 670, and your CVR number, Denmark's company identification number, typically arrives within 1 to 3 business days. The real bottleneck for foreign founders is usually the business bank account, which can take 4 to 8 weeks.
3. Get your CVR number
Your CVR number is issued automatically by the Danish Business Authority once registration is approved, and it's used for tax filings, banking, contracts, and virtually everything else. There's no separate application or fee for it.
4. Check licenses and permits
Denmark doesn't issue a single national business license. What you need depends on your industry; certain sectors carry their own permits on top of standard CVR registration.
5. Understand Danish taxes
Sole proprietors pay Denmark's progressive personal income tax on business profit, which combines municipal and state components and is among the higher combined rates in Europe at the top end.
ApS and A/S companies pay a flat 22% corporate income tax (26% for financial firms), one of the more moderate corporate rates in the Nordics.
VAT (moms) is a flat 25%, no reduced rates for most goods and services, one of the simplest VAT systems in the EU to calculate even if the rate itself is high. Registration is required once annual taxable turnover exceeds DKK 50,000.
6. Stay compliant
Companies file annual financial statements 6 to 9 months after their fiscal year end, and corporate tax returns within 6 months. VAT returns are filed on a schedule tied to turnover size, monthly, quarterly, or annually. Denmark's digital bookkeeping standards mean every transaction needs to be traceable from source document through to your financial statements, so setting up compliant accounting from day one matters more here than in some neighboring countries.
Denmark business costs at a glance
| Item | Cost |
|---|---|
| Sole proprietorship registration | Free |
| ApS registration fee | ~DKK 670 |
| ApS minimum share capital | DKK 20,000 (since Feb 2025) |
| CVR number | Free, automatic |
| Corporate tax | 22% (26% financial firms) |
| VAT, standard rate | 25% |
| VAT registration threshold | DKK 50,000 turnover |
Frequently asked questions
How much does it cost to register a sole proprietorship in Denmark?
Free, and it can typically be set up digitally in around 30 minutes once you have MitID ready.
How much capital do I need to start an ApS in Denmark?
DKK 20,000, reduced from DKK 40,000 in February 2025.
What's the corporate tax rate in Denmark?
A flat 22% (26% for financial firms).
When do I need to register for VAT in Denmark?
Once annual taxable turnover exceeds DKK 50,000. The standard VAT rate is a flat 25%, with no reduced rates for most goods and services.
What's the biggest bottleneck for foreign founders registering a business in Denmark?
The business bank account, which can take 4 to 8 weeks, longer than the registration itself.
Fees and rates above come from the Danish Business Authority (Erhvervsstyrelsen) and Skattestyrelsen as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Denmark-qualified accountant or lawyer about your specific situation.