Company Incorporation in Denmark- An Overview

Company incorporation in Denmark is a legal permit that allows you to register your company in Denmark as a foreigner without having to travel there. All you need is to appoint a Danish local agent/attorney who will assist you in filing and signing your documents for online company registration in Denmark for foreigners.

Denmark is the top-most choice for global entrepreneurs because it provides a 100% foreign ownership, a stable business environment, tax benefits for R&D, an emerging market for tech, AI, green energy, biotech, and F&B. Talk to our experts at Enterslice and enjoy the worry-free company formation in Denmark experience in just 1 week.

The procedure includes searching for a trade name, submitting an application for registration, enrolling for taxes, and opening a corporate bank account. Our associates will help you connect with a local agent, draft your MOA/AOA, and fulfil your annual obligations.

Additionally, the minimum capital requirement is low, and you can just establish a business in Denmark with a virtual office/co-working space because there’s no mandate for physical presence in the country.

Complete foreign ownership

22% corporate tax rate

Up to 116% Tax Deductions for Research & Development

Key Areas- Fintech, AI, Software, & Robotics

Skilled Workforce

Minimal Bureaucracy- Super Fast Registration

Gateway to Other 26 EU Jurisdictions

High Per Capita Income

Stable Economy

Register a Company in Denmark with Enterslice

Now register a company in Denmark and access the vast EU market with over 400 million consumers via Enterslice’s specialized assistance for company structuring and business internal governance.

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What Are the Benefits of Online Company Registration in Denmark for Foreigners?

The benefits of online company registration in Denmark for foreigners include a stable environment, a skilled workforce, advanced infrastructure, government support, and a virtual procedure for incorporation. Key advantages are as follows:

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Ease for Foreigners

Foreigners seeking company incorporation in Denmark don’t have to be physically present in the country to register their business. They can simply take the services of a Danish lawyer or agent who can represent them and finish the administrative tasks before the Danish Business Registry.

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No Requirement for Physical Office

As a non-EU resident, you don’t have to lease or rent a commercial property or land as your official business address. A flexi-desk or co-working space is sufficient for company registration in Denmark for foreigners.

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Ease of Doing Business

Denmark is consistently ranked as the least corrupt country, making it easy for companies to obtain approvals faster than usual due to transparency and minimal bureaucracy. It is one of the merits of online company registration in Denmark for foreigners.

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Easy Entry into the European Markets

Once you set up a business in Denmark, you can enter the rest of the 26 EU countries and enjoy lower tariff rates and customs duties in a major, diverse customer market.

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Online Registration

From name search to final registration and subsequent compliance administration is done through the online Danish Business Registry portal, saving you the money you would otherwise spend on travel. It is one of the significant benefits of online company registration in Denmark for foreigners.

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Strategic Location

Denmark's location connects northern and western Europe through roads and advanced infrastructure, providing easy access to various consumer markets and local business communities, enhancing the overall business experience.

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Tax Deductions for R&D

The Danish government is offering at least 110% tax deductions for qualifying R&D expenses up to USD 17.2 million, lowering your overall tax liability and promoting foreign investment in Denmark. As per the government's plans, the deductions are set to increase up to 120% by 2030.

What are the Key Documents Needed for Company Formation in Denmark?

The list of documents required for company formation in Denmark for foreigners is as follows:

Application Form

Memorandum of Association (MOA)

Articles of Association (AOA)

A copy of the passports of all directors and shareholders

A proof of business address (virtual office/flexi-desk) agreement

Danish digital ID of the local agent for application signing

A copy of the power of attorney (POA) for foreign applicants

Proof of minimum capital deposit of USD 6300

The company's organizational structure

Ultimate beneficial ownership (UBO) declaration, if required

Types of Business Setup for Online Company Registration in Denmark

The various types of business structures for online company registration in Denmark are as follows:

Private Limited Company (ApS)

This is one of the most popular choices for foreign entrepreneurs due to low capital requirements and liability protection for the members' personal assets against the company's debts. You just need one director and shareholder for this business setup. Highly recommended for AI and fintech startups.

Public Limited Company (A/S)

More commonly used for large ventures with significant funding options in Denmark. You must have at least USD 60,000 as minimum paid-up capital. The shareholders and directors are only liable for the extent of capital contributed by them in the business, securing their personal assets against the entity’s liability. Best choice for biotech and green energy startups.

Branch Office

A branch office is another commonly used structure for global entrepreneurs. It is an extension of a foreign parent organization in Denmark. The branch works under the same activities as its parent entity and is subject to taxation in Denmark. You can gain more customers via your branch in the country, expanding your operations across Europe. Recommended for LegalTech companies.

Representative Office

With a representative office, foreign entrepreneurs can conduct market research and join local business communities in Denmark, in case you’re thinking of expanding your operations in the country. However, you cannot generate any type of revenue from this setup in Denmark because it is strictly registered for liaison purposes.

Limited Partnership (K/S)

A limited partnership is a type of business structure that consists of at least two partners, one general partner with unlimited liability, and a limited partner with limited liability. It is recommended for law firms and consultancies.

How to Register a Company in Denmark with Enterslice?

Confused about the process of company formation in Denmark? Checkout how Enterslice’s expert consultants will help you register a company in Denmark, as explained below:

Select a Business Structure

The first step is to choose a business structure for company registration in Denmark. Our associates will assist you in selecting the best-suited structure based on your business activity and capital availability. Besides, most foreigners choose a private limited company because it provides flexibility in management and liability protection to its members.

Trade Name Search

Denmark has no separate business name registration/reservation process. All you need to do is perform a search via the central business register (CVR) and the Danish Patent and Trademark Office’s online portal to ensure it doesn’t coincide with an already registered company or trademark. Our IPR experts will complete this step on your behalf to ensure you don’t face early rejections.

Appointment of a Local Agent/Lawyer

All foreigners are required to avail themselves of the services of a registered local Danish lawyer/agent if they don’t have a residence in Denmark. Your appointed representative will assist you with the minimum fund deposit in their bank account, online filing by signing your documents, and opening a company bank account through their digital MitID. We’ll help you appoint a representative.

Secure a Business Address

Our associates will help you obtain a company address like a flexi desk, co-working space, or an executive office, depending on your business requirements in top areas in Copenhagen like Copenhagen city center, Hellerup & Lyngby, Ballerup, Soborg, Albertslund, and Frederiksberg.

Deposit Capital

If you’re starting a private limited company (ApS), you need at least USD 6300. Your local Danish agent will deposit the same into their client's or escrow bank account and provide a deposit certificate.

Register Online and Submit the Application

The next step is to apply for the online company registration in Denmark via the Danish Business Registry’s digital portal. Documents like the memorandum of association, articles of association, fund deposit certificate, registered address, and shareholder agreements will be prepared by our legal associates. Your local agent appointee will sign the application and submit it to the portal with fees.

Secure a Business Approval by Registry and Corporate Tax Registration

The Danish Business Registry will approve your company’s trade name and registration. They may reach out to you in case they have any questions. Our lawyers will coordinate with them on clarifications to speed up the process. Subsequently, your enterprise will be registered for corporate tax with the Danish tax authority (no separate process).

Register for VAT

If your business activities are likely to produce taxable VAT supplies, you must either enrol for it immediately or within eight days of starting your business operations. Your local representative will apply through the Danish business registry’s online portal.

Open a Corporate Bank Account

Once you’ve successfully registered your company in Denmark, you will need a bank account to handle expenses and funds. Some common choices for remote setup include Wise Business, Revolut Business, and Lunar Business- all three are Denmark-based banks that help you set up a company bank account from anywhere outside the EU. Our associates will help you with the business plan drafting, documentation, and bank interview.

 

Still not sure about the process of company formation in Denmark?

Curious about the Timeline for Online Company Registration in Denmark for Foreigners?

The timeline for online company registration in Denmark for foreigners is as follows:

Selection of Company Structure: 1 day

Choose a well-suited business structure, private limited company, branch office, limited partnership, or public limited company.

Obtain the Services of a Local Agent/Attorney: 1 to 2 Days

Appoint a local registered agent or attorney to complete the company registration in Denmark.

Name Search: 1 to 2 Days

Choose a distinct name and search for it against the Central Business & Trademark Registry’s online portal. You must select at least three names. It should be noted that there’s no separate reservation/registration process for trade names.

Acquire an Office Space: 1 to 3 Days

You need a business address (not just a P.O Box) for company registration in Denmark for foreigners. A virtual office or executive office can be registered as your official address in the country, meaning there’s no such mandate for a full-fledged office unless you want to operate as a crypto or any other regulated business activity.

Prepare Incorporation Documents: 1 to 3 days

Prepare MOA, AOA, shareholder agreements, passport copies, capital deposit slip, and related necessary documents to register a company in Denmark.

Application Filing: 1 Day

The local agent will complete the application Form, attach the documents, and pay the USD 110 fees through their digital ID with the Danish Business Registry.

Review and Approval: 1 to 3 Days

The Denmark Registry for Companies will examine your documents and issue the certificate of company formation in Denmark if they don’t have any questions regarding your application, which can extend the process beyond the usual timeline.

Corporate Bank Account Opening: 2 to 6 Weeks

Choose a bank that best suits your financial needs and apply via your local agent/attorney. A bank account will assist you in managing your payments, funds, and employee salaries.

Value Added Tax Registration: 1 to 3 Days

Enroll for VAT with the Danish Tax Agency through your appointed representative. You can also wait until your supplies exceed the USD 7800 threshold within 12 months.

Criteria for Company Registration in Denmark for Foreigners

The key criteria for company registration in Denmark for foreigners are as follows:

  • At least one director and shareholder for a private limited company (ApS)
  • A minimum of USD 6300 paid-up funds before approval for private companies.
  • At least 3 members on board of directors and one executive director for public company.
  • A Denmark-based agent or attorney for online registration form filing
  • One EU/EEA-based director for a public limited company registration
  • Digital ID (MitID) of the local agent for signing the forms and documents.
  • Passport identification for all foreign-based shareholders and directors.
  • A virtual or co-working space is required for the official address of the company.

Check out the Business Opportunities for Company Formation in Denmark

There are several types of diverse business opportunities, starting from legal to financial services and renewable energy, for company formation in Denmark.

Wondering about the Top Industries to Register a Company in Denmark?

  • Financial Services
  • Fintech
  • LegalTech
  • Biotech
  • Robotics
  • MedTech
  • Green Energy
  • Food & Beverage
  • E-commerce

Which are the Top Businesses for Company Incorporation in Denmark?

  • Crypto-Asset Entities
  • Virtual Currency Trading
  • AI startups and Software Development
  • Online Marketplaces
  • Digital Lending & E-wallets
  • Automated Robotics Companies for Warehousing & Logistics
  • Surgical Robots
  • Digital Health Companies
  • Online Pharmacies
  • Plant-Based Food Startups
  • Green Maritime and Wind Energy

Wondering How to Stay Compliance-Ready after Business Setup in Denmark?

Checkout how Enterslice will assist you in fulfilling compliance obligations after business setup in Denmark-

  • Holding annual general meetings and recording minutes.
  • Providing updates on legal or compliance changes in Danish or EU laws.
  • Drafting financial statements like balance sheets and profit and loss accounts.
  • Formulating cash flow statements and expense reports.
  • Filing corporate tax returns by Sept. 1 means six months after the fiscal year ends.
  • Providing bookkeeping and accounting services.
  • Report annual financial statements to the Danish Business Authority.
  • Maintaining company records and registers.
  • Register for VAT if annual sales exceed USD 7800.
  • Deducting and paying A-Tax and 8% social security contributions.
  • Conducting internal audits and risk assessments.
  • Formulating the company’s AML/KYC policies.
  • Notifying the registrar in case there’s a change in the company.
  • Representing the company before the Danish business or tax authority. 
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Set up a Business in Denmark in a 1 Week Time Frame

Set up a business in Denmark within a week with specialized assistance.

  • We Handle 100% of the Process
  • Fast, Compliant, and Stress-free

Why Trust Enterslice for Online Company Registration in Denmark?

Enterslice is the leading startup company registration and global compliance service provider in more than 100+ countries. We’ve proven 10+ years of experience; our professionals bring hands-on expertise in EU-based company incorporations, VAT registration, and bank account opening. Key reasons for choosing us for online company registration in Denmark include:

  • Complete Digital Setup- Get Started with the Click of your Phone
  • 100+ Registered Local Agents in Denmark
  • End-to-end Support- from Company Name Search to Final Registration
  • Cost-effective and Startup-friendly Banking Solutions
  • Accounting and Bookkeeping- Automate your Processes by 60%
  • Apply for Business-specific Licenses at 20% Off
  • Translation Assistance- 100% Full Proof Documentation in Danish
  • Manage Compliance Hassle-free: No More Penalties for Late Submissions
  • Track your Application via Real-time Updates: Live Dashboard
  • Complete Cost Transparency- with No Hidden Charges

Frequently Asked Questions on Business Setup in Denmark

You need a virtual business address like a flexi-desk, co-working space, or an executive office. There’s no requirement for renting or leasing commercial land or buildings. However, you’re thinking of establishing a crypto asset, manufacturing, insurance, banking, MedTech, or any other regulated activity in Denmark.

There are no restrictions for foreigners looking to establish a business in Denmark. However, you may need specific approvals for activities like virtual assets, financial, or healthcare companies. For example, a MiCA license is required for a cryptocurrency business entity in Denmark.

Yes, you will need at least USD 6,300 to start a private limited company (ApS) and USD 60,000 for a public limited company. There’s no such requirement for setting up a branch office of a foreign parent company, provided it is not a subsidiary.

As a non-EU resident, you’re required to hire the services of a local registered agent or lawyer for establishing a business setup in Denmark. For example, if you’re an Indian national seeking a business venture in Denmark, you will need a Danish representative or attorney with a digital ID to assist you with the form filing, bank account opening, and VAT registration procedure.

Company registration in Denmark for foreigners can help you gain access to markets in the EU, enjoy easy registration, hire the best talent, and get government support in the form of tax benefits and funding. You can fully control your business entity and take advantage of the digital infrastructure for most licensing and business approvals.

The standard corporate tax rate is 22% for all sectors, except oil and gas, which has a 52% rate. Nonresidents can claim exemptions and credits in their home country via double tax agreements. Denmark currently has DTAs with more than 80 international jurisdictions.

You should immediately enrol your corporation for VAT if you think that your supplies will trigger qualifying value-added tax in Denmark. Alternatively, you can apply within 8 days before starting your official operations or when you hit the USD 7800 threshold during the 12 months.
The current VAT rate is 25%, and some essentials, intra-community, and export supplies qualify for a zero-rated VAT in Denmark.

You must submit the annual corporate tax returns through the E-tax for businesses online facility within six months of the financial year’s end. The deadline is Sept. 1 each year, which can be extended by the Danish Tax Authority.

A business plan is not mandatory during company incorporation in Denmark. However, you will need a business plan/model for opening a company bank account. It demonstrates your seriousness towards operating an economic activity in Denmark.

No, you don’t need an EU/EEA-based director for your private company registration in Denmark. The director can be of any nationality, and you can own 100% of your legal entity in the country.

You can deposit the required funds in the client or escrow account of your local representative, registered agent/lawyer, who would then furnish the certificate as proof for supporting your application. It is the most preferred method for foreigners with no digital ID or residency in the EU/EEA.

Directors can be of any nationality for private limited company formation. However, a public limited company needs at least one EU/EEA-based director out of the minimum three directors in Denmark.

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