Comprehensive Guide for Non-Resident

Entrepreneurs in Denmark

Denmark, with its robust economy and business-friendly environment, offers excellent opportunities for non-resident entrepreneurs. This guide provides a detailed roadmap for establishing and maintaining a business presence in Denmark, ensuring compliance with local regulations and maximizing your entrepreneurial potential.

Step-by-Step Approach for Establishing a Business

Business Structure Selection

  • Choose between ApS (private limited company), A/S (public limited company), or other entity types
  • Consider tax implications and liability protection
  • Minimum capital requirement: 40,000 DKK for ApS, 400,000 DKK for A/S
passport
passport

Registration Process

  • Register with the Danish Business Authority (Erhvervsstyrelsen)
  • Use the online registration portal: https://indberet.virk.dk/
  • Timeline: Typically 1-3 business days
  • Fee: 670 DKK for online registration

Tax Obligations

  • Register for VAT (if annual turnover exceeds 50,000 DKK)
  • Understand corporate tax rates (22% standard rate)
  • Register for income tax with SKAT (Danish Tax Authority)
passport
passport

Employment Considerations

  • Register as an employer with SKAT
  • Understand Danish labor laws and social security contributions
  • Consider work permits for non-EU employees

Banking and Finance

  • Open a Danish business bank account
  • Explore financing options, including government incentives
passport

Recommended Tools and Services

By following this guide, non-resident entrepreneurs can navigate the complexities of establishing and operating a business in Denmark with confidence. Remember to consult with local experts for personalized advice tailored to your specific business needs.

Key Requirements for Establishing a
Business in Denmark

Establishing and managing a business in Denmark involves several key steps to ensure compliance with local regulations and efficient operation. Here is a detailed guide to help you navigate the process:

1. Authentication and Access

  1. Obtain Danish NemID or MitID

3. Tax Registration

  1. VAT (Moms) Registration with Skattestyrelsen
    • Register if turnover exceeds 50,000 DKK annually
    • Access: https://skat.dk/
    • Submit Form 40.110 for VAT registration
    • VAT returns: monthly, quarterly, or bi-annually (based on turnover)

2. Business Registration

  1. Register with Danish Business Authority (Erhvervsstyrelsen)
    • Access: https://indberet.virk.dk/
    • Submit required forms (available on the portal)
    • Pay registration fee: 670 DKK for online registration
    • Processing time: Typically 1-3 business days
  2. Register branch office(s)
    • Use the same Erhvervsstyrelsen portal
    • Obtain unique CVR number for each branch

4. Employer Registration and Obligations

  1. Register with Danish Tax Agency (Skatteforvaltningen)
    • Online registration: https://skat.dk/
    • Submit Form 04.063 for employer registration
  2. Fulfill Employer Obligations
    • File monthly A-skat (income tax withholding)
    • Submit monthly AM-bidrag (labor market contribution)
    • Deadline: 10th day of the following month

By adhering to these key requirements, businesses can ensure compliance with Danish regulations and operate smoothly in the Danish market. Always consult with local experts or authorities for the most up-to-date information and guidance tailored to your specific business needs.

Procedures and Timelines for Establishing a
Business in Denmark

Registering a Branch OfficeAuthentication Method Acquisition (1-2 weeks)
Obtain Danish NemID or MitID
Essential for accessing government online services
Apply through: https://www.nemid.nu/ or https://www.mitid.dk/
Parent Company Registration (2-4 weeks)
Register with Danish Business Authority (Erhvervsstyrelsen)
Website: https://indberet.virk.dk/
Submit required forms and pay registration fee (670 DKK for online registration)
Branch Office Registration (2-4 weeks)
Register with Danish Business Authority
Use the same Erhvervsstyrelsen portal
Obtain unique CVR number for each branch

Obtaining a Danish VAT Number (2-4 weeks)Register for VAT (Moms) with Skattestyrelsen
Website: https://skat.dk/
Submit Form 40.110 for VAT registration
Mandatory if turnover exceeds 50,000 DKK annually

Becoming an Employer (2-4 weeks)Register with Danish Tax Agency (Skatteforvaltningen)
Website: https://skat.dk/
Submit Form 04.063 for employer registration
File Initial Returns
A-skat (monthly income tax withholding)
AM-bidrag (monthly labor market contribution)

Submitting Tax ReturnsCorporate Tax (Selskabsskat)
Due annually by June 30th (or March 31st if the financial year follows the calendar year)
File through Skattestyrelsen portal
VAT Returns
Monthly/Quarterly/Bi-annual deadline: 1st day of the third month after the tax period
Annual VAT return due by March 1st of the following year
Employer-related Returns
A-skat and AM-bidrag: Due by 10th of the following month
The Skattestyrelsen website (https://skat.dk/) provides comprehensive guides in Danish for all tax-related procedures, including VAT registration, corporate tax filing, and employer obligations. These resources are invaluable for ensuring compliance with Danish tax regulations.

By following these procedures and timelines, businesses can ensure compliance with Danish regulations. Always consult with local experts or authorities for the most up-to-date information and guidance tailored to your specific business needs.

Key Government Agencies and Websites for Business in Denmark

  1. Danish Business Authority (Erhvervsstyrelsen)
    Website: https://indberet.virk.dk/
    The Erhvervsstyrelsen is the central hub for business registration and regulation in Denmark. It offers essential services for entrepreneurs and established businesses:
    • Company registration and modifications
    • Annual reports submission
    • Business information lookup
    • Digital signature (NemID/MitID) services
  2. Skattestyrelsen (Danish Tax Authority)
    Website: https://skat.dk/
    Skattestyrelsen oversees tax administration in Denmark, providing crucial services:
    • Tax registration (including VAT)
    • Online tax filing and payments
    • Guidance on tax regulations and compliance
    • International tax matters
  3. Danish Tax Agency (Skatteforvaltningen)
    Website: https://www.sktst.dk/
    As part of Skattestyrelsen, the Skatteforvaltningen focuses on tax collection and enforcement:
    • Employer registration
    • Payroll tax management
    • Customs and duties administration

These agencies form the backbone of business administration and compliance in Denmark. Their websites offer comprehensive information, online tools, and resources to ensure adherence to Danish regulations. Entrepreneurs and businesses should familiarize themselves with these platforms to navigate the Danish business landscape effectively. The Danish Business Authority serves as the primary point of contact for company registration, while Skattestyrelsen and Skatteforvaltningen handle various aspects of taxation. By utilizing these online resources, businesses can streamline their operations, ensure compliance, and access valuable information for successful operations in Denmark.

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