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Complete guide: entity types, registration, costs, taxes, labor laws, and break-even analysis
~28 days
Setup Time
~$90
Setup Cost
22%
Corporate Tax
100%
Foreign Ownership
#4
Ease of Business
| Entity | Min Capital | Foreign % | Liability | Min Shareholders | Best For |
|---|---|---|---|---|---|
Anpartsselskab (ApS) Anpartsselskab | 40,000 DKK | 100% | Limited | 1 | Most popular for startups and SMEs - low minimum capital (approx. DKK 40,000 / USD 5,500), simple structure |
Aktieselskab (A/S) Aktieselskab | 400,000 DKK | 100% | Limited | 1 | Larger companies and those seeking public listing - requires board of directors with minimum 3 members |
Branch Office (Filial) Filial af udenlandsk selskab | None | 100% | Unlimited | 0 | Foreign companies establishing a Danish branch - no separate capital requirement |
Ivarksatterselskab (IVS) - Discontinued | 1 DKK | 100% | Limited | 1 | Entrepreneurial company form discontinued in 2021 - existing IVS entities must convert to ApS |
Register Online at Virk.dk
Register the company through the Danish Business Authority's Virk.dk portal - fully digital process
1-3 days
~$90
Erhvervsstyrelsen (Danish Business Authority)
Deposit Share Capital
Deposit minimum DKK 40,000 (ApS) or DKK 400,000 (A/S) into a Danish bank account
1-3 days
Free
Danish Bank
Register for Tax at Skat.dk
Register for corporate tax, VAT, and employer obligations at the Danish Tax Agency (Skattestyrelsen)
1-5 days
Free
Skattestyrelsen (Danish Tax Agency)
Register as Employer
Register as employer for A-tax (PAYE) and AM-bidrag (labor market contribution) withholding
1-3 days
Free
Skattestyrelsen
Open Corporate Bank Account
Open a Danish business bank account with CVR registration documents and director ID
5-14 days
Free
Danish Bank
No statutory minimum
Minimum Wage
$5200/mo
Average Wage
37 hrs/week
Work Hours
25 days/year
Paid Leave
3 weeks/year
Severance
0% of salary
Employer Social Security
8% of salary
Employee Social Security
Required
Foreign Worker Permit
Foreign Worker Quota: No quota. Work permits based on pay limit scheme (DKK 375,000+/year), positive list scheme, or company transfer.
Work Permit Process: Employer applies through the Danish Agency for International Recruitment and Integration (SIRI). Pay Limit Scheme (DKK 375,000+/year) is fastest track.
#4/190
Ease of Business Rank
3.5 days
Starting a Business
4 days
Registering Property
460 days
Enforcing Contracts
90/100
Corruption Perception
98%
Internet Penetration
DKK
Currency
UTC+1
Time Zone
18
Retail (months)
16
F&B (months)
12
Tech (months)
22
Manufacturing (months)
9
Services (months)