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Company Formation Denmark



Company Formation in Denmark

Updated on Tuesday 15th May 2018

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Company Formation Denmark.com provides all the necessary instruments for company incorporation in Denmark such as drafting the Articles of Association and other documents design for the incorporation of the Danish company, setting up a bank account for the Danish company, recommending an accountand and  offering a Registered Office in Denmark.

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Incorporating a ApS. Only a single member is required to form a Danish Private Limited Company (Anpartsselskab - ApS) without restrictions on his residence. The minimum share capital necessary in order to incorporate a Limited Liability Company in Denmark is 80.000 DKK which is divided into shares not negotiable, and not transferrable. The members of the Danish ApS are held liable to the company's debts to the extent of their contribution.
For large amounts of capital and a limited liability of its members it is advisable to open a Danish Public Limited Company or stock corporation (Aktieselskab - A/S). A Joint Stock company incorporated in Denmark requires at least one founder and a minimum share capital of 500.000 DKK. The capital is divided into shares which can be offered to the general public. Just like in the case of the private limited liability companies, the liability of its members is limited in extend of their contribution to the capital.
For small investments and usually for the business with a personality not distinct from their owners, the Danish and foreign entrepreneurs are advised to opt for opening the main form of business an individual can establish in Denmark which is the sole proprietorship. In this case the single member of the business entity is not a separated entity from its business and it is fully liable to the company's debts.
Other form of Danish business where the personality of the members is not distinct from its owners is the Danish General Partnership (Interessentskab - I/S). Unlike the companies, the members of the partnership are fully liable to the company's obligations to the extent of their own personal assets. The structure, the roles and the rights of the partners are regulated by the partnership agreement.
Another type of partnership is the Danish Limited Partnership (Kommanditselskab - K/S) which is formed by a general partner and a limited liability partner, called silent partner. Only the general partner can decide the entity’s business strategies and all the major decisions. The silent partners are liable for the company’s debts in the limit of their contribution to the capital.
Also, investors might take into consideration the idea of entering the Danish market through a branch or a subsidiary. Our specialists in Danish companies formation are here to advise upon the benefits and requirements of each of them.


Preliminary procedure. Before drafting the incorporation documents, the Danish or foreign entrepreneurs willing to open a business in Denmark must verify the uniqueness of their name at the Danish Registrar. The articles of association of an entity established in Denmark are the main documents standing at the base of each business. It states the internal regulations of the Danish company and all the details related to it such as the company's name, the location of the registered office, the purposes its establishment, details related to the share capital, the names and addresses of the managing members. These articles of association must be notarized before are used for registration.
A particularity of the company registration in Denmark is that each business must receive a digital signature known as NEM id. After taking this step it is necessary that the minimum share capital is deposit in a bank account which will issue a certificate of deposit. 
The registration at the Danish Business Authority is made online thorough a system called Webreg. The entrepreneurs must complete an online application and send electronically the articles of association and the bank certificate. Due to the centralized system, the companies are registered in maximum one day at the Danish Business Authority and three days at the tax authorities.
The last step of registration is mandatory only for companies which have employees. These entities must register them at a private insurance company, process which takes process around a day.
After the company registration in Denmark is completed, the company might need some employees. Employers can choose from a highly qualified workforce in Denmark, but it is better to register with company accounts in job websites or collaborate with recruitment agencies in order to get some help in the selection of the candidates. It goes without saying that the standard of living is rather high in Denmark, and as a consequence, so are the salaries. 


Many foreign investors want to come and start a company in Denmark due to the country’s high standard of living. This statute also keeps the economy in a rather flourishing position. Foreign investments in Denmark are encouraged by the government by offering incentives, such as loans, grants or reduce taxes for foreign investors. If you wish to know how much you have to pay as corporate taxe, dividend tax and VAT in Denmark we invite you to use our instant tax calculator.
The great number of company formations in Denmark can also rely on the ranking of the country as second in Europe and sixth in the world for the “Ease of doing business”. Also, Forbes named Denmark the first destination for foreign investments. All these classifications are based on some facilities in the process of setting up a company in Denmark. The well-trained workforce, the high quality of life or the lack of bureaucracy in Denmark are only a few reasons for company formation in Denmark.

For further consultancy please feel free to contact our company formation specialists in Denmark. For issues related to legal matters please please contact our partners lawyers in Denmark. If you want to open companies in other countries such as Seychelles, Canada, Vietnam or Indonesia, we can put you in touch with our affiliates. 



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