Denmark
Company Formation
Denmark is known for its highly stable economy, transparent legal system and favourable business environment.
As a member of the European Union, Denmark offers access to the EU single market, making it an ideal jurisdiction for businesses looking to expand within Europe.
Denmark is particularly attractive for businesses in sectors like technology, renewable energy and innovation, with a competitive tax regime, a highly educated workforce and strong government support for start-ups.
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Why Denmark
- Denmark is a top choice for company formation, offering a stable and business-friendly environment for innovation and sustainability.
- With strong investor protections, EU compliance and a corporate tax rate of 22%, it provides significant financial advantages.
- The country’s skilled workforce, especially in technology and renewable energy, along with government grants and robust infrastructure, make it ideal for start-ups focused on innovation and sustainability.
Key Contacts
Alexia Panzavecchia
Claire Marie Calleja Zammit
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Key Information Overview
 | Types of Companies | Private Limited Company (ApS), Public Limited Company (A/S), Branch |
 | Minimum Share Capital | ApS: DKK 40,000, A/S: DKK 400,000 |
 | Registered Office | Must have a registered office in Denmark |
 | Shareholders & Directors | At least 1 shareholder and 1 director (no residency requirement) |
 | Bank Account | Must open a Danish bank account |
 | Tax Regime | 22% corporate tax |
 | Time to Complete Incorporation | 1-2 weeks |
 | Annual Maintenance Costs | Varies based on company size; includes annual registration and accounting fees |
 | Audit Requirements | Mandatory for larger companies; exemptions for smaller ones |
 | Market Access | Access to the EU single market |
 | Key Benefits | Strong economy, competitive corporate tax rate, highly skilled workforce |
 | Legal Framework | Based on civil law |
 | Physical Presence Requirements | Registered office required |
 | Corporate Governance Requirements | At least 1 director and 1 shareholder; board meetings required |
 | Language Requirements | Danish, English widely accepted |
 | Tax Residency Rules | Managed and controlled from Denmark |
 | Required Documents | Memorandum & Articles of Association, ID proof, registered office address |
 | Compliance & Reporting | Annual returns, financial statements, VAT filings |
 | Employee and Payroll Requirements | Must comply with Danish employment laws, including social security contributions |
Types of Companies
Denmark offers several types of corporate structures that cater to different business needs, from small start-ups to larger multinational corporations.
01
Private Limited Company (ApS)
- The most common type of company in Denmark, suitable for small and medium-sized businesses. Provides limited liability for shareholders.
- Minimum share capital requirement: DKK 40,000.
02
Public Limited Company (A/S)
- Suitable for larger businesses, especially those planning to raise capital or go public.
- Minimum share capital requirement: DKK 400,000.
03
Branch of a Foreign Company
Foreign companies can establish a branch in Denmark, allowing them to operate as an extension of the parent company.
04
Sole Proprietorship
Ideal for individuals conducting business independently, though this structure does not offer limited liability protection.
05
Special Purpose Vehicles (SPVs)
Denmark is an attractive jurisdiction for the creation of Special Purpose Vehicles (SPVs), particularly for investment, real estate and asset management purposes. These structures benefit from Denmark’s robust legal framework, EU compliance and tax efficiency.
Holding Company
Denmark’s holding company regime is highly attractive, with exemptions on dividends and capital gains from qualifying subsidiaries. It’s widely used for managing international investments.
Securitisation Vehicle
SPVs in Denmark are commonly used for securitising assets, benefiting from the country’s well-regulated financial system and competitive tax structures.
Investment Funds (AIFs, UCITS)
Denmark is home to a growing number of Alternative Investment Funds (AIFs) and UCITS, offering international investors tax-efficient structures and strong regulatory oversight.
Real Estate Holding Company
Denmark allows the creation of SPVs for holding and managing real estate, particularly for international investors looking to enter the Danish property market.
Start-Ups
Denmark offers a supportive environment for start-ups, particularly in technology, clean energy and innovation sectors. With access to government grants, tax incentives and a highly skilled workforce, Denmark is a prime location for entrepreneurs.
Tax Incentives:
- Corporate Tax Rate: The standard corporate tax rate in Denmark is 22%, which is competitive within the European Union.
- R&D Tax Credits: Companies investing in research and development can benefit from tax deductions or credits for eligible R&D expenses.
Government Grants and Support:
- Innovation Fund Denmark: Provides grants and loans to innovative start-ups in sectors like technology, renewable energy and healthcare.
- Business Development Grants: Available for start-ups looking to expand or develop new products and services.
Business Support:
Incubators and Accelerators: Denmark has a robust start-up ecosystem, with numerous incubators and accelerators offering mentorship, office space and access to venture capital.
Access to Markets:
EU Membership: Denmark’s access to the EU single market makes it an ideal jurisdiction for start-ups looking to scale across Europe.
Digital and Innovation-Friendly Environment:
Tech and Clean Energy Hub: Denmark is a leader in clean energy and technology innovation, making it an ideal location for businesses focused on sustainability and digital solutions.
A
Grade A: Highly Start-Up Friendly
Denmark offers a solid environment for start-ups, particularly in technology and renewable energy sectors. With government grants, strong business infrastructure and access to EU markets, Denmark is an attractive destination for entrepreneurs.
Benefits
Denmark offers numerous advantages for businesses, from its stable political and economic environment to its competitive tax regime and access to EU markets.
Favourable Tax Regime
Denmark’s corporate tax rate is 22% and its holding company regime provides tax exemptions on dividends and capital gains from subsidiaries.
Access to EU Markets
As an EU member, Denmark provides companies with access to the EU single market, allowing the free movement of goods, services and capital.
Highly Skilled Workforce
Denmark has a highly educated workforce, particularly in technology, engineering and renewable energy, making it easier for businesses to find qualified employees.
Transparent Legal System
Denmark’s legal system is transparent, compliant with EU standards and known for its strong protections for businesses and investors.
Sustainability and Innovation
Denmark is a global leader in clean energy and sustainability, making it a prime location for businesses focused on green technologies and innovative solutions.
Requirements
To establish a company in Denmark, several legal and administrative requirements must be met. The following outlines the basic requirements for incorporation.
01
Shareholders
A Private Limited Company (ApS) requires a minimum of one shareholder. Shareholders can be individuals or legal entities, with no restrictions on nationality or residency.
02
Directors
A minimum of one director is required for a Private Limited Company (ApS). Directors can be of any nationality and there are no residency requirements, though local directors are often recommended.
03
Company Secretary
There is no legal requirement for a company secretary, though it is common practice for larger businesses.
04
Registered Office
Every company must have a registered office in Denmark, which will serve as the official address for legal correspondence.
05
Minimum Share Capital
Private Limited Companies (ApS) must have a minimum share capital of DKK 40,000, while Public Limited Companies (A/S) require DKK 400,000.
06
Bank Account
A local or international bank account must be opened in the company’s name, where the initial share capital must be deposited.
Mergers & Acquisitions
TAILORED SUPPORT to fast-track your market entry
Our Mergers & Acquisitions services are designed to assist clients in acquiring existing companies with pre-established licenses, streamlining the process of entering or expanding in key markets. These services are particularly relevant for investors seeking to fast-track their market entry while ensuring efficient and compliant solutions.
Identifying Suitable Businesses
We help clients locate companies that meet their specific goals, focusing on entities with strong operational histories and the required licenses.
Legal and Regulatory Assistance
Our experts guide clients through the unique legal and compliance frameworks of each market, ensuring a smooth acquisition process with minimal risk.
Valuation & Due Diligence
We conduct in-depth assessments of the target company’s financial and operational status, providing transparency and confidence in the acquisition.
Post-Acquisition Support
For clients who decide to divest, we offer comprehensive services to facilitate the sale of the company and transfer of licenses.
Frequently Asked Questions
What is the corporate tax rate in Denmark?
Denmark’s corporate tax rate is 22%, which is competitive for businesses operating in the EU.
Is there a withholding tax on dividends paid to non-residents in Denmark?
Yes, Denmark applies a 27% withholding tax on dividends, which can be reduced through tax treaties or EU directives.
What legal structures are available for businesses in Denmark?
The most common structures include the Private Limited Company (Anpartsselskab, ApS) and Public Limited Company (Aktieselskab, A/S).
Are there VAT obligations for companies in Denmark?
Yes, the standard VAT rate is 25%, but there are exemptions for certain types of services, such as healthcare and financial services.
Are audited financial statements mandatory in Denmark?
Yes, most companies must file audited financial statements, although small businesses may qualify for an exemption.
What are the residency requirements for directors in Denmark?
Denmark does not require directors to be residents, but having a Danish representative can be helpful for tax and regulatory purposes.
Does Denmark offer tax incentives for R&D?
Yes, Denmark offers tax incentives for R&D expenses, including deductions and grants for qualifying companies.
Does Denmark have double taxation treaties?
Yes, Denmark has a wide network of double taxation treaties to prevent businesses from being taxed in multiple jurisdictions.
What is the process for incorporating a company in Denmark?
Incorporation involves registering with the Danish Business Authority, drafting the Articles of Association and depositing the minimum share capital.
How long does it take to incorporate a company in Denmark?
The process can take between 1 to 3 weeks, depending on how quickly the necessary documentation is provided.
Need assistance?
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