How to Start an LLC in Denmark: Step by Step Guide

Can You Register an LLC in Denmark?

Denmark welcomes foreign entrepreneurs with open arms, and setting up an LLC here is entirely possible without being a Danish citizen or resident. The process is straightforward, transparent, and built with international founders in mind.

• Legal structure available: Denmark’s equivalent of an LLC is the ApS (Anpartsselskab), which offers limited liability and works well for most business types.
• No residency requirement: You do not need to live in Denmark to register an ApS, making it genuinely accessible to international founders.
• EU and non-EU founders both qualify: Whether you are based in Europe or elsewhere, Denmark places no nationality restrictions on company ownership.
• A local registered address is required: You must provide a Danish business address during registration, though virtual office services handle this easily and affordably.
• A EU-resident board member may be needed: If none of your directors are EU residents, you may need to appoint one to satisfy certain administrative requirements.
• Special perk for remote founders: Denmark’s fully digital registration system means you can complete the entire process from anywhere in the world without a single in-person visit.

Advantages of Forming an LLC in Denmark

Denmark is not just easy to enter; it actively rewards businesses that set up here with a combination of legal protections, tax advantages, and access to one of the most connected economies in Europe.

• Limited personal liability: Your personal assets stay protected, since the ApS structure legally separates you from your company’s financial obligations and debts.
• Low corporate tax rate: Denmark levies a 22% corporate tax rate, which sits comfortably below the average across many Western European nations.
• Access to the EU single market: Registering in Denmark gives your business immediate access to the European Union’s single market of millions of consumers.
• Strong intellectual property protection: Denmark ranks among the top countries globally for IP enforcement, which is a meaningful advantage for tech and creative businesses.
• Government grants for startups: The Danish Business Authority and Innovation Fund Denmark both offer funding programs that foreign-founded companies can apply for post-registration.
• Double taxation treaties: Denmark holds treaties with over 80 countries, which significantly reduces the risk of being taxed twice on the same income.
• Highly educated workforce: Denmark consistently ranks in the top tier globally for workforce skill levels, making local hiring a strong long-term advantage.

Steps to Register an LLC in Denmark

Denmark has designed its registration process to be as friction-free as possible. Once you see the steps laid out, you will agree it lives up to that promise completely.

• Step 1: Choose your company name: Pick a unique name for your ApS and verify its availability through the Danish Business Authority’s online search tool before moving forward.
• Step 2: Prepare your share capital: The minimum required share capital for an ApS is DKK 40,000, which must be ready to deposit before or during the registration process.
• Step 3: Draft the articles of association: Prepare a formal document outlining ownership structure, management rules, and the company’s purpose, since this is a mandatory registration requirement.
• Step 4: Register through Virk.dk: Head to Virk.dk, Denmark’s official business portal, and complete the online registration form, which typically takes under an hour to fill out.
• Step 5: Submit and pay the registration fee: Pay the registration fee of approximately DKK 670 online, and submit your application along with all required supporting documents for review.
• Step 6: Receive your CVR number: Once approved, the Danish Business Authority issues your CVR number, which is your official company identification number used for all business and tax purposes.
• Step 7: Open a Danish business bank account: Use your CVR number to open a business bank account with a Danish bank, then deposit your share capital to officially activate the company.
• Step 8: Register for VAT if applicable: If your expected annual turnover exceeds DKK 50,000, you must register for VAT through Virk.dk before you begin invoicing clients.

Tax Obligations After LLC Registration in Denmark

Once your ApS is registered, the tax side of things kicks in fairly quickly. Denmark’s system is organized, well-documented, and easier to navigate than most European countries once you know what to expect and what to watch for.

• Corporate tax rate: Denmark applies a flat corporate tax rate of 22% on company profits, sitting higher than Germany’s 15.825% (including solidarity charge) but notably lower than France’s 25% corporate rate.
• VAT registration threshold: If annual turnover exceeds DKK 50,000, VAT registration becomes mandatory, and the standard Danish VAT rate is 25%.
• VAT filing frequency: Depending on company size, VAT returns are filed monthly, quarterly, or semi-annually through the official Skat.dk portal managed by the Danish Tax Authority.
• Withholding tax on dividends: Denmark applies a 27% withholding tax on dividends, though this drops to 15% for shareholders in countries covered under double tax treaties.
• Payroll tax obligations: If you hire Danish employees, you must register as an employer and handle A-tax and labor market contributions through the E-income system.
• Hidden fee to watch: Companies often overlook the mandatory contribution to the Danish Holiday Fund (Feriekonto), which applies to all salaried employees and adds to monthly payroll costs.
• R&D tax incentive: Denmark offers an enhanced tax deduction of 110% on qualifying research and development expenses, which is a meaningful advantage for tech and innovation-focused businesses.
• Useful official tool: The Danish Tax Authority’s tax calculator at Skat.dk lets you estimate corporate liability in real time before you file anything.

Set Up Your LLC Today with Commenda

We built Commenda because founders deserve a formation experience that actually keeps up with them. From first filing to ongoing compliance, we handle the heavy lifting so you can stay focused entirely on building the business.

• End-to-end LLC formation: We manage the entire registration process from name search to final filing, making sure nothing falls through the cracks along the way.
• Registered agent services: We provide a compliant registered address and act as your official point of contact with local authorities throughout the year.
• EIN registration support: We handle your EIN application so your business account and payroll setup can move forward without delay.
• Compliance deadline tracking: Our system sends automated reminders for annual reports, VAT filings, and renewal deadlines so you never miss a critical date.
• Operating agreement templates: We provide ready-to-use, legally sound templates that cover ownership structure, voting rights, and profit distribution clearly.
• Multilingual support team: Our team works across time zones and languages, making the formation process accessible for international founders, no matter where they are based.
• Transparent pricing: No surprise charges, no hidden fees. What we quote at the start is exactly what appears on the final invoice, every time.

Businesses across more than 70 countries have trusted us to handle their business formation and compliance needs with care. 

This kind of reach comes from consistently delivering results that founders can rely on, not just at registration but throughout the entire life of their business.

Book a demo today and let us take the complexity out of your Danish LLC formation completely.