TBA & Associates

Opening a company in Denmark

What you need to take into consideration when establishing a business in Denmark

Denmark stands out as one of the European nations that facilitate a straightforward company formation process. It boasts a well-established infrastructure and an environment conducive to research, development, and innovative business ventures.

The process of setting up a company in Denmark is uncomplicated, involving several key steps. It all commences with selecting the appropriate business structure. Given Denmark’s favorable business environment, many international companies have opted to establish their Nordic headquarters in cities like Copenhagen. There are numerous sectors ripe for investment, including technology, life sciences, maritime industries, as well as design, food production, and renewable energies. TBA provides comprehensive services for both local and foreign investors interested in launching a company in Denmark. Our assistance spans from the initial stages of company formation to offering solutions for dispute resolution and other legal services.

Steps to Set up a Company in Denmark

Here are the main steps to initiate a business:

Choose a Legal Structure

Selecting the right company type is crucial, aligning it with your capital and investor numbers, and ensuring it suits small, medium, or large enterprises. The private limited liability company or ApS is widely used by both local and foreign investors.

Register the Company

Registration with the Danish Business Authority is essential. This straightforward process concludes with the issuance of a central company register number for all dealings with public authorities.

Obtain Permits

Certain business types may necessitate additional permits and licenses.

Register with Tax Authorities

After registering with the business authority, the company should also register with Danish tax authorities (SKAT). Companies requiring VAT registration will undertake a separate registration process.

Hire Employees

The selection of personnel, including specialized or highly skilled staff, depends on the chosen business field. Denmark allows business owners to easily employ foreign workers or transfer existing employees in case of company relocation.

Setting up a business in Denmark is remarkably efficient.

The process takes just six working days, encompassing four simple steps. Entrepreneurs also have the option to acquire a ready-made company (shelf company), a topic on which our team of experts can provide additional information.

Advantages to Incorporate in Denmark

Denmark has garnered popularity among businesspeople seeking the ideal location to establish their companies. This preference is attributed to several benefits associated with starting a business in Denmark.
Denmark offers numerous advantages for business owners who opt to incorporate in the country, such as:

An economical and efficient incorporation process that allows for quick and cost-effective company formation.

A rapid registration procedure that expedites the incorporation process for entrepreneurs establishing businesses in Denmark.

No residency requirement when creating a corporation in Denmark. This flexibility enables CEOs and board members to reside anywhere globally.

Notarized deeds are not mandated for incorporation in Denmark, simplifying the process.

Registration language requirements in Denmark permit certain documents to be written in English, easing incorporation for investors from English-speaking countries like the United States, the United Kingdom, Canada, Australia, and New Zealand.

Denmark allows company dividends to be distributed on an interim basis, granting offshore company owners increased freedom and flexibility.

Denmark’s company law aligns with EU legislation, making it a highly legitimate jurisdiction for incorporation.

Denmark offers a tax-effective legal framework compared to other jurisdictions, offering significant advantages to corporations.

Denmark serves as a hub for Nordic and European corporate activities, allowing companies to use Danish subsidiaries to expand their presence in other countries in the region.

Danish Limited Partnership (K/S)
Full Tax-Exempt Danish Entity
The best Danish vehicle for International Trade

The Danish Limited Partnership (K/S) combines the tax transparency and flexibility typical of a partnership with the distinct legal identity advantages of a company. It allows for the complete avoidance of Danish corporate tax if the partners are non-residents and the K/S, registered in Denmark, exclusively conducts its trade outside of Denmark.

This type of limited partnership operates based on a partnership agreement and can be established by two or more members, who may be individuals or legal entities.

The Danish Limited Partnership comprises two types of partners:

General Partner: This partner possesses managerial control, shares the profits of the firm according to predefined proportions, and carries liability for the partnership’s debts.

Limited Partners: Similar to shareholders in a corporation, these partners enjoy limited liability. This means they are only responsible for the debts incurred by the firm up to the extent of their registered investment and do not have any management authority.

Key Tax Advantages

The K/S enjoys a 0% Danish corporate tax rate if its profits are distributed to offshore partners.

A minimum of two partners is required: one General Partner and one Limited Partner. Offshore entities can be utilized, but at least 50% of the partnership should be held by an EU company or an offshore company with a Double Taxation Treaty (DTT) in Denmark.

Unlike other business structures, Limited Partnerships do not have share capital; instead, they have “capital” contributed by the partners, with the specific amount determined by the partners.

There is no need for a director, as the Limited Partnership can be managed by the General Partner. However, if the plan is to have the Limited Partnership managed by a director, a Danish director is required for successful registration.

What TBA Can Offer

TBA can assist you in understanding the various company types and their corresponding requirements. Foreign companies entering the Danish market can choose to open a branch or a subsidiary. Our lawyers can provide guidance on this specific choice. While a branch offers simplicity in incorporation and general reporting obligations, the foreign company is liable for the branch’s actions, debts, and liabilities when conducting business in Danish cities like Copenhagen.

We offer comprehensive information on the registration requirements for tax purposes, as well as the annual reporting and filing obligations with SKAT. Our tax lawyers in Denmark can provide detailed insights into double taxation treaties concluded between Denmark and other countries.

When launching a business in Denmark, it’s crucial to adhere to the Companies Law and Employment Law, among other relevant regulations. In terms of employment, our Danish lawyers can help investors create employment contracts in compliance with current legislation. We can also provide information about employee insurance, taxes related to staff recruitment, and social security contributions.

TBA delivers effective and personalized corporate services, including assistance with statutory secretarial requirements and ensuring your company complies with legal and administrative mandates in Denmark. We can serve as your central point of contact in Denmark, coordinating communications between auditors, lawyers, authorities, and financial institutions.


We offer a range of administrative services, including:
  • Business name registration.
  • Maintenance of statutory registers and other formal documentation.
  • Registered office address and retention of mandatory company files.
  • Opening bank accounts.
  • Bookkeeping.
  • Annual reports.
  • Payroll administration.
  • Preparation, attendance at, and/or drafting of minutes for annual general meetings, board meetings, and other corporate gatherings.
  • Preparation and execution of resolutions.
  • Preparation and filing of forms for any changes in your company.
  • Management of all incoming and outgoing correspondence.
  • General corporate and legal assistance.
  • Ad hoc tasks.

Our company licensing services

— What we do and do not do

Our company is EXCLUSIVELY engaged in assisting worldwide clients, either individuals or corporate entities, to get duly and properly licensed with local Regulators and Financial Authorities to get respective official licenses to legally carry out their cryptocurrency or financial related business activities.

TBA & Associates Tax Business Advisors does not provide or carry out any sort of Cryptocurrency or Financial services!

Disclaimer: While TBA & Associates strives to make the information on this website as timely and accurate as possible, the information itself is for reference purposes only. You should not substitute the information provided in this article for competent legal advice. Feel free to contact TBA Customer Services for advice on your specific cases.

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