Denmark for founders: company, tax and banking
DenmarkEuropeOverview
Danish company registration runs online. Erhvervsstyrelsen, the Danish Business Authority, registers companies and their beneficial owners through the Virk portal, and Skattestyrelsen, the tax agency, handles corporate tax, VAT and payroll. Besides the anpartsselskab, Danish law offers the larger aktieselskab (A/S), which needs more capital and a board of at least three.
Companies pay 22% tax on their taxable income. A Danish company generally withholds 27% dividend tax when it pays a dividend; where a dividend to a foreign company is taxable in Denmark, the final tax is 22%, the excess can be reclaimed and a tax treaty can reduce or remove it. Dividends and gains on subsidiary and group shares are generally tax-exempt for a Danish company.
Erhvervsstyrelsen sets no particular requirements on a founder's nationality or residence, and an ApS can be run by an executive board alone, without a board of directors. The company needs an address in Denmark where it can be contacted, and the people registered with it need a valid residential address.
Redomiciled organises the Danish setup and the recurring filings through Danish accountants and corporate service providers, while Danish tax advisers and those in your home country advise on tax.
Denmark company formation: setting up a Danish ApS
A Danish anpartsselskab (ApS) is a private limited company owned through shares called anparter and registered with Erhvervsstyrelsen. As of November 2026, it needs at least DKK 20,000 of capital, paid in before registration, and its taxable income is taxed at 22%, the rate for 2026.
An ApS is founded by one or more natural or legal persons who sign a memorandum of association with the articles. The capital is at least DKK 20,000, in Danish kroner or euro; at least 25% of it and never less than DKK 20,000 must be paid in, either to an account belonging to the company or to a lawyer.
The formation is registered on Virk no later than two weeks after the memorandum is signed, and only once the capital has been paid in. The self-service on Virk uses a MitID login. The registration covers the management, any auditor and the beneficial owners, and everyone registered needs a valid residential address.
An ApS may be run by an executive board alone, or by a board of directors together with an executive board. Members of management must be of age, not under guardianship and not disqualified in Denmark or another EU or EEA state. The company's registered office is an address in Denmark at which it can be contacted.
VAT registration is made on Virk once sales exceed DKK 50,000 in a 12-month period, and a company that pays salaries registers as an employer before the first payroll and reports each month through eIndkomst. The annual report must reach Erhvervsstyrelsen within six months of the financial year end.
A foreign limited company can instead register a Danish branch before it starts trading. The branch is run from an address in Denmark by one or more branch managers employed by the parent, who need not live in Denmark, and it files the parent's audited annual report within six months of the year end.
Redomiciled coordinates the registration, the Danish address, bookkeeping, the annual report, and tax, VAT and payroll registrations with Danish providers; Danish advisers give the legal and tax advice.
Who it suits
Businesses entering the Danish market
You want a Danish company for customers, staff or contracts in Denmark, registered and administered online.
Founders without Danish ties
Erhvervsstyrelsen sets no particular nationality or residence requirement for founders, and an executive board alone can run an ApS.
Holding companies
A Danish company is generally not taxed on dividends and gains on subsidiary and group shares, which suits holding structures.
Foreign companies opening a branch
A foreign limited company can register a Danish branch run by branch managers who need not live in Denmark.
Requirements
- Required
Capital of at least DKK 20,000
In Danish kroner or euro; at least 25% and never less than DKK 20,000 paid in before registration.
- Required
Management of the company
At least an executive board; members must be of age, not under guardianship and not disqualified in Denmark or the EU and EEA.
- Required
Address in Denmark
The registered office is a Danish address at which the company can be contacted.
- Required
Registration within two weeks
On Virk, no later than two weeks after the memorandum of association is signed.
- Required
Beneficial owners registered
With Erhvervsstyrelsen, and every change as soon as possible after the company learns of it.
- Depends on your case
Audit
Can be omitted while the company stays below two of the three size limits for two consecutive years.
- Depends on your case
VAT registration
Required once sales exceed DKK 50,000 in a 12-month period.
Documents
- Memorandum of association with articlesSigned by the founders; it states the capital, the shares and the first management.
- Documentation of the capital paymentFrom the bank holding the company's account, or from the lawyer who received the payment.
- Details of management and any auditorNames and valid residential addresses of everyone registered with the company.
- Beneficial owner informationThe natural persons who ultimately own or control the company.
- Registered officeThe Danish address at which the company can be contacted.
- Capital paid in
- At least 25% and never less than DKK 20,000As of 3 November 2026 · [2]
- Management
- An executive board alone is possible; a board of directors is optionalAs of 3 November 2026 · [1]
- Registration deadline
- Within 2 weeks of signing the memorandum, after the capital is paid inAs of 3 November 2026 · [2]
- Registered office
- An address in Denmark where the company can be contactedAs of 3 November 2026 · [1]
- Beneficial owners
- Registered with Erhvervsstyrelsen; every change as soon as possibleAs of 3 November 2026 · [4]
- Dividend tax withheld
- Generally 27%, withheld by the Danish company paying the dividend; exemptions applyAs of 3 November 2026 · [6]
- VAT registration
- Required above DKK 50,000 of sales in 12 monthsAs of 3 November 2026 · [8]
- Annual report
- Received by Erhvervsstyrelsen within 6 months of the financial year endAs of 3 November 2026 · [9]
- Audit exemption
- Possible if 2 of these are not exceeded in 2 consecutive years: DKK 4 million balance sheet, DKK 8 million revenue, 12 employeesAs of 3 November 2026 · [9]
- Corporate tax return
- Within 6 months of the end of the income yearAs of 3 November 2026 · [10]
- Payroll reporting (eIndkomst)
- Monthly; for small and medium-sized employers by the 10th of the following monthAs of 3 November 2026 · [12]
Timeline
- 1Structure and managementDecide the owners, any holding company above, and whether the ApS has an executive board alone or a board of directors as well.
- 2Memorandum and capitalSign the memorandum of association and pay in the capital to the company's account or to a lawyer.
- 3Registration on VirkRegister the formation, management and beneficial owners within two weeks of signing, once the capital is paid in.
- 4VAT and employer registrationRegister for VAT once the threshold is reached and as an employer before the first salary payment.
- 5Bank and bookkeepingOpen the operating account after the bank's due diligence and set up the bookkeeping for the annual report.
- 6Annual cycleMonthly payroll reporting, the annual report within six months of the year end and the corporate tax return.
Tax notes
- Danish companies pay corporate tax at 22% of their taxable income. The company reports its taxable result to Skattestyrelsen within six months of the end of the income year, which is 30 June for a calendar year.
- A Danish company generally withholds 27% dividend tax when it pays a dividend. Where a dividend to a foreign company is taxable in Denmark, the final tax is 22%, the excess can be reclaimed and a tax treaty can reduce or remove it; no dividend tax is withheld on dividends that are not taxable for the foreign company receiving them.
- Dividends that a Danish company receives on subsidiary shares, meaning a holding of at least 10%, or on group shares are generally tax-exempt, and gains on such shares are generally not taxed either. Trading shares are excluded.
- VAT is 25%. A business registers for VAT on Virk once its sales exceed DKK 50,000 in a 12-month period.
- A company that pays salaries registers as an employer on Virk before the first payroll and reports salaries to eIndkomst every month, with report and payment due by the 10th of the following month for small and medium-sized employers; large employers have earlier deadlines.
General information, not tax advice. Your position depends on your circumstances.
Banking fit
- The capital can be paid to a lawyer instead of a bank account, which separates company formation from bank onboarding.
- Danish banks verify the company and its beneficial owners and ask about the purpose of the relationship before they open an account.
- Where due diligence cannot be completed, the law stops the bank from opening the account, so each bank decides on the file in front of it.
Keeping a Danish company in good standing
The annual report must reach Erhvervsstyrelsen within six months of the end of the financial year. A company may omit the audit if, for two consecutive years, it does not exceed two of three limits: DKK 4 million balance sheet total, DKK 8 million revenue and 12 employees.
Beneficial owners stay registered and up to date: every change is registered as soon as possible after the company learns of it. The company keeps a Danish address at which it can be contacted, and the people registered with it keep valid residential addresses.
Payroll is reported monthly in eIndkomst and VAT is settled for each period, so the bookkeeping runs all year rather than only at the year end.
Questions
How much capital does a Danish ApS need?
At least DKK 20,000, which can be stated in Danish kroner or euro. At least 25% of the capital and never less than DKK 20,000 must be paid in, so an ApS with the minimum capital pays it in full before registration.
Who can manage a Danish ApS?
An ApS can be run by an executive board alone. Its members must be of age, not under guardianship and not disqualified from management in Denmark or another EU or EEA state.
When does a Danish ApS have to be registered?
No later than two weeks after the memorandum of association is signed, and only once the capital has been paid in. Registration is a self-service on Virk with a MitID login.
Does a Danish ApS need an audit?
It can omit the audit if, in two consecutive years, it does not exceed two of three limits: DKK 4 million balance sheet total, DKK 8 million revenue and 12 employees on average.
When are the annual report and the tax return due?
The annual report must reach Erhvervsstyrelsen within six months of the financial year end. The corporate tax return is due within six months of the end of the income year, 30 June for a calendar year.
Can a foreign company open a branch in Denmark?
Yes. A foreign limited company registers its Danish branch before it starts trading there. The branch is run from a Danish address by branch managers employed by the parent, who need not live in Denmark, and it files the parent's audited annual report.
Banking in our network
We do not publish institution names: the right partner depends on your profile, and each institution keeps its own view on who it will serve.
60+
Banking partners across Europe in our network
No partner institution in our network is based here; companies and residents here are introduced to partners in other jurisdictions.
- The share capital of an ApS is paid to an account belonging to the company or to a lawyer, and the payment is documented accordingly, so a bank account is not the only route the Business Authority's guidance allows.
- Under the Anti-Money Laundering Act a Danish bank verifies the identity of the company and its beneficial owners, assesses the purpose and intended nature of the business relationship and monitors it on an ongoing basis. Where the risk is higher, it applies enhanced due diligence.
- If a bank cannot carry out the due diligence the Act requires, it may not establish the relationship and must end an existing one. Each bank decides after its own checks.
Do I need a Danish bank account to form an ApS?
Not necessarily. Erhvervsstyrelsen's guidance lets the capital be paid to an account belonging to the company or to a lawyer, and the payment is then documented by the bank or by the lawyer. Registration can only happen once the capital is paid in.
What does a Danish bank check before opening a company account?
The identity of the company and of its beneficial owners, the purpose and intended nature of the relationship, and later the transactions it carries out, on an ongoing basis. For higher-risk customers the Anti-Money Laundering Act requires enhanced due diligence.
What happens if the bank cannot complete its checks?
Under the Anti-Money Laundering Act the bank may not open the account, and it must end an existing relationship if the required due diligence can no longer be carried out. A complete and consistent file on ownership and activity matters for that reason.
Does the bank also look at the beneficial owners?
Yes. Identifying the beneficial owners is part of the bank's due diligence. Separately, the company registers its beneficial owners with Erhvervsstyrelsen and must register every change as soon as possible after it learns of it.
Questions
Can a foreigner start a company in Denmark?
Yes. Erhvervsstyrelsen states that a founder can be a natural or legal person and that there are no particular requirements on a founder's nationality or residence. Registration is a self-service on Virk with a MitID login, and the company needs an address in Denmark.
What is the corporate tax rate in Denmark?
22%. A Danish company generally withholds 27% dividend tax when it pays a dividend. Where a dividend to a foreign company is taxable in Denmark, the final tax is 22%, the excess can be reclaimed and a tax treaty can reduce or remove it; dividends not taxable for the foreign company carry no withholding.
How much capital does a Danish ApS need?
DKK 20,000, which may be stated in Danish kroner or in euro. At least 25% of the capital and never less than DKK 20,000 must be paid in, so an ApS with the minimum capital pays it in full.
Sources
- 1.Retsinformation: Companies Act (Selskabsloven), consolidated act no. 331 of 20 March 2025 (PDF), retrieved 2026-11-03
- 2.Erhvervsstyrelsen: Guidance on forming an ApS or A/S, retrieved 2026-11-03
- 3.Erhvervsstyrelsen: Guidance on self-service business registration, retrieved 2026-11-03
- 4.Erhvervsstyrelsen: Guidance on reporting beneficial owners, retrieved 2026-11-03
- 5.Skattestyrelsen: Legal guide, the corporate tax rate, retrieved 2026-11-03
- 6.Skattestyrelsen: Legal guide, the duty to withhold dividend tax, retrieved 2026-11-03
- 7.Skattestyrelsen: Get started on VAT, retrieved 2026-11-03
- 8.Skattestyrelsen: How to register your business for VAT, retrieved 2026-11-03
- 9.Retsinformation: Financial Statements Act (Årsregnskabsloven), consolidated act no. 402 of 23 March 2026 (PDF), retrieved 2026-11-03
- 10.Skattestyrelsen: Start-up with tax for companies, part 3: closing the year, retrieved 2026-11-03
- 11.Skattestyrelsen: Start-up with employees, part 1: getting started, retrieved 2026-11-03
- 12.Skattestyrelsen: Start-up with employees, part 3: reporting salaries and paying tax, retrieved 2026-11-03
- 13.Erhvervsstyrelsen: Guidance on branches of foreign limited companies, retrieved 2026-11-03
- 14.Skattestyrelsen: Legal guide, dividends on subsidiary and group shares, retrieved 2026-11-03
- 15.Retsinformation: Anti-Money Laundering Act (Hvidvaskloven), consolidated act no. 433 of 17 April 2026 (PDF), retrieved 2026-11-03
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