Procedures for setting up a company in Denmark

Denmark is a Nordic country that attracts investment capital thanks to a combination of many favorable factors. Denmark’s geographical location as a gateway to the Scandinavian and Baltic regions also offers a great advantage for businesses looking to expand their markets. The stable economy along with the globally appreciated business environment, create trust for investors. Denmark is well-known for its highly skilled workforce, fluent in foreign languages, and good productivity. Establishing a company in Denmark will reduce time and costs if investors understand the procedures for establishing a company in Denmark, Viet An Law would like to provide some information through the article below.

Prepare company information for setting up a company in Denmark

Choosing a company type

Investors need to consider choosing the type of company that suits their needs and business scale, here are some common types:

Private Limited Liability Company (Anpartsselskab – ApS)

• Most popular for small and medium-sized businesses: This type is preferred because of the balance between protecting the owner’s personal assets and relatively low initial capital requirements. This type is suitable for a wide range of businesses, from retail stores, restaurants, service companies to small and medium-sized manufacturing enterprises.
• Minimum capital requirement of DKK 40,000 (Danish Krone): This capital must be contributed to the company at the time of incorporation.

Joint Stock Company (Aktieselskab – A/S)

• Usually for larger companies, which can be listed on the stock exchange: This type is suitable for large-scale businesses that need to raise large capital through the issuance of shares to the public. Listing on the stock exchange helps the company enhance its prestige and access to capital from investors.
• Minimum capital requirement of DKK 400,000: The minimum capital level is much higher than that of ApS, reflecting the larger size and growth potential of A/S companies.

Choosing a company name

Conditions for naming a company

• The name must be unique, not identical or confusing to other companies registered in Denmark.
• Do not contain other people’s own names or names that mislead the nature of the business.

You can check the availability of the registered name on the website of the Danish Business Administration (Erhvervsstyrelsen).

Opening a bank account and contribute capital

After preparing the required minimum charter capital for an ApS (DKK 40,000) or A/S (DKK 400,000) company, the next step is to open a bank account for the company at a bank in Denmark.

Typically, the bank will require documents such as a copy of the passport or photo ID of the founder or representative of the company and documents related to the incorporation of the company (if already available) or the incorporation plan. The bank will provide a certificate or deed of receipt of this money, which is an important document to prove the capital contribution during the company registration process with the Danish Enterprise Regulatory Authority (Erhvervsstyrelsen).

Register MitID/NemID Erhverv

MitID Erhverv (formerly NemID Erhverv) is a mandatory digital signature and electronic identification system for businesses in Denmark. It is used to authenticate identities and conduct online transactions with government agencies and other organizations, including the process of registering a company.

You or your representative in Denmark will need a MitID (personal) to create a MitID Erhverv (business)

• MitID (personal): To create a MitID Erhverv for a business, at least one person with a management role or legal representative of the company (e.g., board member, director) needs to have a personal MitID. Personal MitID is an application for authenticating an individual’s identity.
• MitID Erhverv (business): After having a personal MitID, the representative can register and set up a MitID Erhverv for the business.

This digital signature is used to carry out most online procedures, including company registration. If you are not in Denmark, you may need to authorize a lawyer or accountant in Denmark to do this.

Setting up a company in Denmark

Visit the Registration Portal

Virk.dk is the official business portal of the Danish government. It is the system where you will carry out most of the procedures related to the establishment, management, and dissolution of a business. You’ll need to create an account on Virk.dk if you don’t already have one.

Fill out the online application form

After successfully logging in, you will find the “Start virksomhed” section. You proceed to use the MitID/NemID Erhverv requested above to log in. The system will display a series of pages with fields to fill in to form a company including:

• Company name;
• Address;
• Type of company;
• Owner information (including beneficial owners): Provides details about the individuals or organizations that own or control the company. “Ultimate beneficial owners” are usually those who directly or indirectly own more than 25% of the company’s shares or voting rights. You will need to provide your name, address, date of birth, and other information as required;
• Information about the management/directors: Enter information about the board members (if any) and the company’s chief executive officer, including name, address, and personal identification number (CPR number if applicable);
• industry code (NACE code);
• The amount of charter capital expected to be contributed;

Upload attachments

Once you have completed the application, you will need to upload the following documents:

• Memorandum of Understanding;
• Charter of the company;
• Certificate of capital contribution;

Submit the Registration Fee

Currently, the registration fee for ApS and A/S companies is usually around DKK 670. However, this fee is subject to change.

Get a Business Registration Number (CVR Number)

The competent authority will process the application, if the application is approved, you will be issued a CVR number. A CVR (Central Virksomhedsregister) number is a unique 8-digit code issued to your company. This is the official number to identify the company in all transactions with government agencies (e.g. tax authorities, customs), banks, business partners, customers, and other organizations in Denmark. You will need to use this CVR number on all invoices, contracts, websites, and other official company documents. It is also a code for you to carry out administrative and tax procedures later.