Denmark (DK)
Denmark is a constitutional monarchy and parliamentary democracy in Northern Europe — the southernmost of the Scandinavian nations — celebrated for its pioneering design aesthetic (Royal Copenhagen, Bang & Olufsen, Lego), the concept of hygge (cosiness and togetherness), the world's best work-life balance, free world-class universities, a welfare state that ranks among the globe's most generous, and Copenhagen consistently topping global rankings for sustainability, cycling infrastructure, and quality of life.
Capital: Copenhagen
Region: Europe
Language: Danish
Currency: DKK (kr)
Cost of living: Expensive (index 82)
Emergency: 112
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Business Setup
Start a business or go freelance in Denmark.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Register your Enkeltmandsvirksomhed (sole trader) at virk.dk — free, takes 15 minutes with MitID. You receive a CVR number (business registration number) within 1–2 days.
- 2 Decide if you need a separate business bank account — recommended for accounting clarity.
- 3 Register for moms (VAT) at virk.dk if your annual turnover exceeds DKK 50,000. You must register before reaching this threshold.
- 4 Set up bookkeeping (bogføring) — mandatory in Denmark. Use accounting software (e.g., Billy, e-conomic, Dinero, Visma) or hire a revisor (accountant).
- 5 Understand your tax obligations: as an enkeltmand, profit is taxed as personal income (up to 55.9% marginal rate). Consider an ApS structure if income is high.
- 6 Consider joining a self-employed a-kasse (e.g., ASE, Krifa) for unemployment insurance.
- 7 Set up a pension scheme — as self-employed you have no employer pension contribution. Consider ratepension or aldersopsparing (age savings).
- 8 Get your skattekort (tax card) updated at skat.dk for the correct B-skat (advance tax payment) for self-employed income.
Tax registration
Enkeltmandsvirksomheder are automatically registered for income tax through SKAT when you register your business at Virk.dk. Self-employed individuals pay B-skat (advance tax) in 10 instalments per year. Register for moms (VAT) separately at virk.dk if turnover exceeds DKK 50,000.
VAT threshold
DKK 50,000 annual turnover. Once you exceed this threshold (or expect to), you must register for moms immediately. Danish VAT (moms) is 25% on most goods and services. File moms quarterly or half-yearly depending on turnover.
Invoicing
All invoices must include: your name/company name and address, CVR number, customer name and address, invoice date, sequential invoice number, description of goods/services, quantity and unit price, total ex-VAT, VAT amount (25%), total including VAT. Electronic invoicing (e-faktura) is standard. Invoices to public sector clients must be sent via the government e-invoicing system (NemHandel).
Social security
Self-employed individuals are not automatically covered by some social insurance. Join a self-employed a-kasse for dagpenge (unemployment benefit) eligibility. You still pay ATP contributions (at a reduced rate). You are responsible for your own pension — set up a private scheme (ratepension). Sygedagpenge (sickness benefit) is available from Udbetaling Danmark after 2 weeks of illness (shorter qualifying period if you have employed yourself for at least 6 months).
💡 Denmark is a relatively easy country in which to freelance and self-employ, but the tax burden on sole traders is high (income taxed as personal income up to 55.9%). Many high-earning freelancers choose an ApS structure to benefit from the lower company tax rate (22%) and to pay themselves a salary + dividends in a more tax-efficient manner. The Virksomhedsskatteordningen (VSO — business tax scheme) is an important tool for sole traders that allows them to defer personal income tax on retained business profits. Consult a revisor about VSO if your freelance income is substantial.
🏢 Business Structures
ENK · Enkeltmandsvirksomhed
Sole trader / Sole proprietorship
DKK 0 (no minimum capital)
Min. capital
15–30 minutes online at Virk.dk. CVR number issued within 1–2 business days.
Setup time
Liability: Unlimited personal liability — the owner is personally responsible for all business debts.
Setup cost: Free to register (no registration fee at Virk.dk). Some branches may require a licence.
Best for: Freelancers, consultants, solo practitioners, and those testing a business idea. The simplest and cheapest business form. Very common in Denmark for self-employed (selvstændig) individuals.
ApS · Anpartsselskab
Private limited company
DKK 20,000 (minimum share capital since 27 February 2025 — reduced from DKK 40,000; must be deposited upon incorporation)
Min. capital
1–3 business days if using the online Virk.dk process with standard articles of association. More complex setups with legal help: 1–2 weeks.
Setup time
Liability: Limited — shareholders are not personally liable beyond their share capital.
Setup cost: Registration fee: DKK 670 at Virk.dk. Legal/accounting assistance: DKK 3,000–10,000. Plus DKK 20,000 minimum capital.
Best for: Most small and medium businesses wanting limited liability. The most common business entity in Denmark for companies with employees. Required when hiring staff in most cases.
A/S · Aktieselskab
Public limited company
DKK 400,000 minimum share capital
Min. capital
2–4 weeks including preparation of articles of association and shareholder agreement.
Setup time
Liability: Limited — shareholders are not personally liable beyond their investment.
Setup cost: Registration fee at Erhvervsstyrelsen. Legal fees: DKK 20,000–50,000+. Plus DKK 400,000 minimum capital.
Best for: Larger companies, those planning to raise significant capital, or those requiring a public company structure. Less common for small businesses.
I/S · Interessentskab
General partnership
DKK 0
Min. capital
15–30 minutes online.
Setup time
Liability: Unlimited personal liability for all partners — each partner is jointly and severally liable for the partnership's debts.
Setup cost: Free to register at Virk.dk.
Best for: Two or more individuals wanting to operate together without the formality of a company. Common for professional partnerships (e.g., lawyers, architects). Requires a written partnership agreement.
P/S · Partnerselskab
Limited partnership company
DKK 400,000
Min. capital
2–4 weeks.
Setup time
Liability: Mixed: general partners have unlimited liability; limited partners have limited liability.
Setup cost: Similar to A/S.
Best for: Professional service firms (law firms, accounting firms) wanting a partnership structure with some limited liability.
Business Setup
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