Business entities in Denmark in 2022

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Healy Consultants will assist our Client engineer the optimum Denmark corporate structure. There are several ways of doing business in Denmark, the most common being the setup of a limited liability company (also known in some countries as a private limited company).

The Denmark limited liability company (Anpartsselskab)

  • A Denmark limited liability company (LLC) is the most common entity used to conduct business within Denmark and is allowed to engage in any commercial or industrial activity, except financial and banking services. A Denmark resident secretary is not required;
  • A limited liability company can be incorporated within one week, with a minimum of one shareholder and one director of any nationality. The minimum paid up share capital is DNK12,500 (approximately €400) and our Client does not need to travel to complete Danish business setup procedures with the Danish Business Authority.

The Denmark stock corporation (Aktieselskab)

The Denmark stock corporation is very similar to a limited liability company and can be registered with one shareholder and one director. The minimum amount of capital to setup such Denmark business entity is however higher: DKK800,000 (approximately €110,000). The company must also submit audited financial statements to the Denmark Inland Revenue Department.

Branch office

The Danish Act on Certain Commercial Undertakings regulates foreign company branches in Denmark and stipulates that they may be 100% foreign owned. A branch office in Denmark can conduct trade within the scope set by the parent company. A Denmark branch office is allowed to invoice Denmark customers, sign local sales contracts and receive income from customers. A Denmark branch company is also required to obtain the necessary licensing for its industry of business.

Representative office

Where a foreign company does not intend to carry on commercial business in Denmark, it may seek to establish a representative office. While a Denmark representative office is 100% foreign-owned and controlled, it is not permitted to make direct sales within Denmark. Such an office must will only engage in activities such as i) promoting the business of the parent company and ii) market research. A local Denmark agent or distributor must be appointed to sell goods and provide services to local companies.

Table of comparison between different Denmark entities

Summary at a glance LLC Branch Rep office
How long to set the company up? 1 week 2 weeks 2 weeks
How long to set the corporate bank account? 3 weeks 3 weeks 3 weeks
Bank signatory must travel Yes Yes Yes
Issued share capital required €400 0 0
Is doing business in Denmark permitted? Yes Yes No
Allowed to sign sales contracts with Denmark Clients Yes Yes No
Allowed to invoice Denmark Clients Yes Yes No
Corporate tax payable in Denmark 22% 22% 0%
Corporate bank account Citibank Citibank Citibank
Can rent office in Denmark Yes Yes Yes
Tenancy agreement required before incorporation? No No Yes
Allowed to import raw materials? Yes Yes No
Allowed to export goods? Yes Yes No
Allowed to export goods? Yes Yes Yes
Do you visit Denmark for company incorporation? No No No
Resident director required? No No No
Resident shareholder required? No No No
Minimum number of directors 1 0 0
Minimum number of shareholders 1 0 0
Denmark resident company secretary No No Yes
Individual shareholders allowed Yes No No
Corporate shareholders allowed Yes Yes Yes
Corporate director(s) allowed No No No
Public register of shareholders and directors Yes Yes Yes
Denmark employment visa fees €3,950 €3,950 €3,950
How long to get work permit approved 3 months 3 months 3 months
Statutory audit required Yes Yes No
Annual tax return to be submitted Yes Yes Yes
Access to Denmark double tax treaties Yes Yes Yes
Estimate of engagement costs €12,655 €12,915 €11,665
Draft invoice View invoice PDF View invoice PDF View invoice PDF

Contact us

For additional information on our company setup services in Denmark, please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
  • Mr. Petar Chakarov
  • Client Engagements Manager
  • Contact me!