Why Denmark is one of the smartest places to start a company in 2025. Step-by-step guide to registering an ApS (private limited company)

Why Denmark in 2025?

Denmark continues to be attractive for entrepreneurs and foreign investors because of a transparent legal framework, fast digital company registration, and active policy measures to lower barriers for startups (including the 2025 reduction of ApS capital requirements and allowing equity-crowdfunding). These moves are explicitly designed to make it easier to incorporate and raise capital in Denmark. 

 • Minimum share capital for an ApS: DKK 20,000 (law changed around end-2024 / effective Jan 1, 2025, implemented in practice early 2025). 

 • Corporate income tax (CIT): 22%. 

 • Standard VAT (moms): 25%; VAT registration is required when taxable sales exceed DKK 50,000 in a 12-month period (foreign businesses have specific rules). 

 • Who can own / manage: Non-residents and foreign entities can be shareholders and directors (no strict Danish residency requirement for directors). 

 • Typical time to incorporate: ~1–2 weeks if documents are ready (some delays can occur for bank accounts / permits). 

Step-by-step: How to register an ApS in Denmark (practical checklist)

Below is a practical, publishable step-by-step you can follow or hand to your client. Each step notes the typical documents/actions and the helpful sources.

1) Choose and confirm a unique company name (CVR / Danish Business Registry)
Check name availability in the Danish Business Registry (CVR) via the official online services (Virk / Erhvervsstyrelsen). You must use the exact legal form (ApS) in filings. 

2) Prepare incorporation documents (Articles of Association / Memorandum)
Draft the Articles of Association and any shareholders’ agreements. Some documents must be in Danish (or have a Danish translation) while others may be filed in English or Scandinavian languages — check requirements for the Articles specifically. You’ll usually need signatures notarized or certified depending on how you file. 

3) Decide on share capital and deposit funds (DKK 20,000 min)
Minimum share capital is DKK 20,000 for new ApS incorporations under the 2025 rules. In practice, founders commonly deposit the capital into a lawyer’s client (escrow) account or into a bank account that verifies the capital deposit before registration. (Law firms / notaries commonly handle this step.) 

Note: For larger share capitals the Companies Act describes paid-in requirements (for certain structures a minimum of 25% of share capital but not less than the statutory minimum may apply) — check with your lawyer/accountant for the exact mechanics if you choose share capital > DKK 20,000. 

4) Open a (corporate) bank account
After the deposit is verified (lawyer’s confirmation or bank statement), open the company bank account. Bank onboarding can take extra time (KYC, international clients often need additional documentation). Many service providers advise using a Danish law firm’s client account as a first step to speed the process. 

5) File registration online with the Danish Business Authority (Erhvervsstyrelsen)
Submit the incorporation, the notarized documents, proof of deposit and required forms online via the official portal (VIRK / Erhvervsstyrelsen). You will be assigned a CVR number (company registration number). Registration must generally be completed promptly after signing the memorandum (there are statutory timelines). 

6) VAT / tax registrations (if applicable)
VAT: Register for VAT if your taxable turnover in Denmark exceeds DKK 50,000 in a 12-month period (or earlier in specific circumstances). Registration is done via SKAT / virk. 

Corporate tax: Your company will be taxed at corporate rate 22% on taxable profits. You should register for tax accounts and set up bookkeeping / accounting from day one. 

7) Payroll & employer registration (if hiring)
If you hire employees, register as an employer via Virk / SKAT and report wages through the e-income (eIndkomst) payroll system. Employers withhold income tax, pay the labour market contribution (AM-bidrag) and contribute to pension/ATP and social schemes. 

8) Ongoing compliance
File annual reports (digital), maintain accounting records, and meet statutory filing deadlines. Danish compliance is heavily digitalized, good accounting and timely filings avoid penalties. 

Practical timing & costs (what to budget for)

 • Typical time to incorporate: 1–2 weeks when paperwork and deposit are in order; bank onboarding can add time. 

 • Official registration fee: nominal (approx EUR 100 via the online portal in many cases), additional service fees apply if you use an agent or law firm. 

 • Service provider costs: using a formation service or law firm for deposits, notary and registration typically ranges from several hundred to a few thousand euros depending on scope (bank help, registered address, nominee services, VAT/tax registration). See market examples (CompyCo, YB Case) for packaging and pricing. 

Residency & ownership, can foreigners do it?

Yes. Denmark allows foreign shareholders and directors; there is no strict requirement that directors be Danish residents (though some banks prefer a Danish/EEA contact and practical administration may be easier with local support). If you plan to operate from abroad or to use a foreign director, discuss banking and operational implications in advance. 

Recent legal change you should know

You may have heard different numbers floating around: the correct, current statutory minimum for new ApS companies is DKK 20,000 (the minimum was DKK 40,000 before the change). The bill was presented in late 2024 and the new rules were implemented from early 2025 (the Danish Business Authority published the change and providers updated their systems during the first months of 2025). If anyone tells you the minimum is DKK 10,000,  that is not supported by current Danish legislation. 

Common pitfalls & practical tips

 • Bank onboarding is the bottleneck. Prepare comprehensive KYC documents, proof of source of funds and clear ownership structures. Consider opening the account with a bank that has experience with foreign founders or use a law firm’s client account while the bank setup is completed. 

 • Don’t confuse company capital with operating cash. The capital requirement is a legal floor, plan real operating capital for payroll, taxes and launch costs.

 • VAT timing matters. If you expect to exceed DKK 50,000 in sales within 12 months, register for VAT early. Foreign sellers should check OSS / distance selling rules that may apply. 

 • Local address/registered office. You must have a registered office address in Denmark (virtual office providers are commonly used). 

How Doing Business International (DBI) can help

Our specialists guide you through the whole process, from choosing the right legal structure and preparing notarized documents, to securing the capital deposit, opening the bank account and registering for CVR/VAT/payroll. We ensure compliance and speed up the parts that typically slow founders down (bank KYC, legal translations, and employer registration).

Typical DBI support package includes: name search + CVR filing, drafting & notarization, capital deposit coordination, bank introduction assistance, VAT & tax registrations, and payroll setup.