Denmark Company Formation

Opening a company in Denmark

Why start a company in Denmark? What are the advantages in Denmark?
Denmark, a country that is part of the European Union, is a convenient solution for many entrepreneurs.

The local currency is the Danish Krone (DKK).

Denmark is an important country that is part of the Scandinavian countries, with a local market that understands the English language very well.

The country is in Northern Europe, as part of the Scandinavian countries, and this is a very important strategic location for import/export operations from Europe. Copenhagen's positive position as a port city for import/export from or to Europe, where the main transportation routes intersect, allows goods to be exported or imported to European countries, thus reaching over 500 million consumers.

Investors see Denmark as one of the unique investment destinations in Europe. The tourists are fascinated by the Danish hospitality and friendliness, by the cultural heritage of Denmark and the natural wealth of the country.

The process of opening a company in Denmark
Opening a company in Denmark begins with the signing of incorporation documents. Unlike the process of opening a company abroad in most countries, in order to open a company there is no need to sign the incorporation documents in front of a notary public. The documents are sent electronically to the company registrar in Denmark (the Danish company registrar is called Erhvervsstyrelsen). At this stage the company is legally established and can start business activities, When then required to deposit the equity.

In Denmark, all incorporation documents are also in English, which makes the process of setting up a company in Denmark very convenient.

A company charter is issued from the commercial register, and it actually constitutes the Danish certificate of incorporation.

In Denmark there is no need for a local director or a local shareholder. In Denmark you also do not need any European citizenship to open a company. You can open a Danish company even if you are a foreign citizen. This means that it is possible to open the company with 100% shareholding in the name of a foreign citizen - in your name, or even in the name of a foreign company. The director can be foreign and there is no need for a local director.

Equity Capital
Opening a company in Denmark requires a minimum equity deposit of 40,000 kroner, which is approximately 5,364 euros.

Opening a bank account in Denmark - current account for the company
In Denmark, it is required to make an actual deposit of the aforementioned amount of equity. Therefore, after establishing the company in Denmark, it is necessary to open a bank account for the purpose of depositing the equity.

Since this is a European country, more or less starting in 2018, those who want to open a bank account are required to come to the country.

However, there is an alternative, and that is opening an internet bank account. Indeed, similar to our "Zero One" bank, there are Internet banks in Europe that would be happy to accept your company in Denmark as a customer.

The account where the equity is deposited is actually an active current account for all intents and purposes.

VAT registration
After the opening of the company, at the same time as the opening of the current bank account for the company, the registration of the new company in VAT will also be carried out. The company will receive a VAT number and can start trading.

EORI number
If you need to, we can obtain an EORI number for you so that you can import or export with the company within Europe.
EORI is an abbreviation of Economic Operators Registration and Identification number.

Company maintenance
The company requires annual maintenance of payment of fees, annual submissions, local address (which we will provide for you), as well as submissions to the tax authority.

Tax in Denmark
The corporate tax rate in Denmark is 22%.
For sales to the local Danish market, the VAT is 25%.

Questions and answers
Question: Is it necessary to physically fly to Denmark to open a company in Denmark?
Answer: The entire process is carried out remotely and at no stage is it necessary to physically come to Denmark. There is no need to fly to Denmark to open the company, nor the company's bank account. The entire process of opening the company and in most cases also the company's bank account, are carried out remotely without setting foot on Danish soil.

Question: Who provides the local address for the company in the new Denmark?
Answer: We will provide the local address.

Question: How can I find a good accountant who can take care of the company in our new Denmark?
Answer: We will connect you with a local accountant.

Question: If I want to come to Denmark to open a bank account, what should I do?
Answer: We will try ahead of time to arrange a meeting for you at the branch in order to sign the account opening forms, so that everything will be in order before you arrive, so that you don't just walk around the city in order to find a branch that will accept you and open a bank account for your new company in Denmark.

Question: What type of company in Denmark should I open?
Answer: In Denmark there is only one type of company, so there is really no reason to hesitate. This type is the usual and well-known limited liability company. In Denmark, the company is called "ApS".

Question: Do you need a European passport to open a company in Denmark?
Answer: There is no need for a European passport. We can open a company in Denmark for any foreign citizen as long as he has a valid passport.

Question: How long does it take to open a company in Denmark?
Answer: The entire company opening process is very fast and can take between 24 and 48 hours only. After that, the process of opening a bank account takes about 3 weeks, depending on the readiness of the banks to accept the new company as a customer. Of course, these are times that depend on third parties, so this is only an estimate.
Question: Is it possible to open a company in Denmark for a person with American citizenship or a person living in the USA?
Answer: Yes. We know how to open a company in Denmark for a person with American citizenship or a person living in the USA.

Apparently it seems trivial that a person with ties to the USA could open a company in Denmark, but we assure you that this is not the case. Today, all banks in Denmark without exception refuse to open an account for a new Danish company if its owner has any ties to the USA. Therefore we are probably the only ones, and certainly one of the few in Denmark, who know how to open a company in Denmark for a person with American citizenship or who lives in the USA.

Question: How much does it cost to open a company in Denmark?
Answer: Click here and get in touch and get a current quote without obligation!