Company Formation in Denmark

Denmark Incorporation

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  Capital Setup

  An ApS requires a minimum share capital of DKK 40,000 (around €5,400), which can be paid in cash or with approved non-cash assets. The capital forms the company’s equity base and limits shareholder liability. A public limited company (A/S) requires DKK 400,000, but most SMEs prefer the ApS due to its flexibility and lower costs.

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  Taxes

  Corporate income tax in Denmark is 22%, one of the lowest in Western Europe. The country has over 70 double-tax treaties to prevent double taxation and offers tax deductions for R&D expenditure. Dividend distributions to EU/EEA parent companies may be exempt from withholding tax. VAT registration is required once annual turnover exceeds DKK 50,000.

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  Business Structure Requirements

  The most common business form is the ApS (Anpartsselskab / Private Limited Company). It requires at least one shareholder and one director, who can both be non-residents. A registered office address in Denmark is mandatory, but there are no nationality or residency restrictions. Foreign individuals can incorporate entirely online using Denmark’s digital registration system.

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  Ongoing Obligations

  All Danish companies must prepare and file annual financial statements with the Danish Business Authority. Corporate tax returns are due within six months after the financial year-end. Companies must maintain accurate accounting records, a UBO (Ultimate Beneficial Owner) register, and comply with VAT and payroll reporting requirements. Audits are mandatory only for larger entities that exceed thresholds for revenue, assets, or staff.