Private Limited Company (ApS)
Anpartsselskab
Company formation in Denmark
The ApS is best suited for: Companies entering the Scandinavian market from a highly regulated and trusted base, Clean tech and green energy companies accessing Denmark's world-leading cluster, Health tech and life sciences startups leveraging Copenhagen's Medicon Valley ecosystem, SMEs prioritising regulatory stability, transparency, and ease of doing business, Foreign founders wanting the fastest company registration in Scandinavia. An ApS pays corporate income tax (selskabsskat) at a flat rate of 22% on taxable profits. Denmark applies a participation exemption on dividends and capital gains from qualifying subsidiaries (minimum 10% shareholding). Losses can be carried forward indefinitely, though utilisation is limited to DKK 8.9 million plus 60% of taxable income exceeding that threshold. Denmark has interest deduction limitation rules including an EBITDA rule (net financing costs are deductible up to 30% of taxable EBITDA) and thin capitalisation rules (debt-to-equity ratio of 4:1). VAT (moms) is charged at a flat 25% rate — Denmark does not apply reduced VAT rates. Withholding tax on dividends to non-resident shareholders is 27%, reduced under double tax treaties (typically 0–15%). Within the EU, dividends to qualifying parent companies are exempt under the Parent-Subsidiary Directive.
- Companies entering the Scandinavian market from a highly regulated and trusted base
- Clean tech and green energy companies accessing Denmark's world-leading cluster
- Health tech and life sciences startups leveraging Copenhagen's Medicon Valley ecosystem
- SMEs prioritising regulatory stability, transparency, and ease of doing business
- Foreign founders wanting the fastest company registration in Scandinavia
Key Facts
Step-by-Step Formation Process
Obtain a NemID/MitID or appoint a representative
Danish company registration requires a NemID or MitID digital identity. Non-residents who cannot obtain one must appoint a Danish representative (advokat or registreret revisor) to file on their behalf. EU/EEA citizens can obtain MitID after registering with the Danish Civil Registration System.
Register the company on Virk.dk
Submit the registration application through Virk.dk (the Danish Business Authority's online portal). Provide the company name, registered address, articles of association (vedtægter), share capital details, information about founders, directors, and beneficial owners. The minimum DKK 40,000 share capital must be confirmed as available.
Receive CVR number and registration certificate
The Danish Business Authority (Erhvervsstyrelsen) issues a CVR number (Central Business Register number) upon approval. This serves as the company's unique identification number for all government, tax, and banking interactions. The company is now legally established.
Register for tax and VAT with Skattestyrelsen
Register for corporate tax and VAT with Skattestyrelsen (the Danish Tax Agency). VAT registration is mandatory if annual taxable turnover exceeds DKK 50,000. Registration can be completed online via Virk.dk.
Open a corporate bank account
Open a business bank account with a Danish bank (Danske Bank, Nordea, Jyske Bank, Nykredit). The bank will require the CVR registration certificate, articles of association, identification of directors and beneficial owners, and a description of the business activities. Due diligence processes may extend the timeline for companies with non-resident directors.
Required Documents
- Articles of association (vedtægter)
- Registration application via Virk.dk
- Passport or national ID for all founders, directors, and beneficial owners
- Confirmation of share capital (DKK 40,000 minimum)
- Proof of registered office address in Denmark
- NemID/MitID or power of attorney for a Danish representative
Cost Overview
Tax Treatment
An ApS pays corporate income tax (selskabsskat) at a flat rate of 22% on taxable profits. Denmark applies a participation exemption on dividends and capital gains from qualifying subsidiaries (minimum 10% shareholding). Losses can be carried forward indefinitely, though utilisation is limited to DKK 8.9 million plus 60% of taxable income exceeding that threshold. Denmark has interest deduction limitation rules including an EBITDA rule (net financing costs are deductible up to 30% of taxable EBITDA) and thin capitalisation rules (debt-to-equity ratio of 4:1). VAT (moms) is charged at a flat 25% rate — Denmark does not apply reduced VAT rates. Withholding tax on dividends to non-resident shareholders is 27%, reduced under double tax treaties (typically 0–15%). Within the EU, dividends to qualifying parent companies are exempt under the Parent-Subsidiary Directive.
Pros & Cons
- Denmark consistently ranks in the top 3 globally for ease of doing business — regulatory transparency is exceptional
- Online registration through Virk.dk can be completed in as little as one day
- Corruption is virtually non-existent — Denmark regularly tops Transparency International rankings
- Strong legal system with reliable contract enforcement and intellectual property protection
- World-leading clusters in clean tech, wind energy, health tech, and maritime industries
- Excellent English proficiency — among the highest in the world for a non-native-English country
- Strategic geographic position as a gateway between Scandinavia and Continental Europe
- Extensive double tax treaty network (80+ treaties)
- DKK 40,000 minimum capital is higher than some European peers (Estonia €2,500, UK £1)
- Denmark is expensive — labour costs, office space in Copenhagen, and general operating costs are among Europe's highest
- VAT at 25% is the joint highest in the EU
- Not in the Eurozone — DKK is pegged to EUR but currency management is still required
- Statutory audit is required for larger companies (exceeding two of three thresholds: 50 employees, DKK 44 million revenue, DKK 22 million total assets)
- Danish employer obligations include pension contributions (typically 8–15% of salary) and holiday pay accruals
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Get StartedThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.