In short
The usual structure is the ApS (private limited company). Minimum capital is DKK 20,000 since 1 January 2025, fully paid in. No notary is needed: the founding document and articles are filed on virk.dk (fee DKK 670) within 2 weeks of signing, and digital filings usually get a CVR number quickly. Self-service needs MitID, so US founders without a Danish ID usually file through a Danish lawyer or formation service. There is no residence rule for directors. Corporate tax is 22%, VAT 25% (registration above DKK 50,000 in 12 months), and dividends to US shareholders are taxed at 15%, 5% or 0% under the treaty. Small companies can opt out of audit.
Danish company: key facts
Last verified 28 September 2026| Usual company type | ApS (private limited company); minimum capital DKK 20,000 since 1 January 2025, fully paid in# Source: Danish Business Authority: forming an ApS or A/S · Danish Companies Act (LBK 331/2025) |
|---|---|
| Notary | None needed — founding document and articles are signed and filed on virk.dk within 2 weeks of signing# Source: Danish Business Authority: forming an ApS or A/S |
| Registration fee | DKK 670 for an ApS or A/S filed digitally# Source: Danish Business Authority: fees |
| Filing without a CPR number | Self-service needs MitID (or an EU eID); US founders without one usually file through a Danish lawyer or formation service# Source: Business in Denmark (virk.dk): start a company |
| Directors | No residence or nationality rule for directors; an ApS needs no board# Source: Danish Companies Act (LBK 331/2025) |
| Corporate tax | 22% (26% for the financial sector); the June 2026 government platform plans a cut to 19% over three years, no bill yet# Source: Ministry of Taxation: corporate tax rates · PwC Denmark: new government platform (June 2026) |
| VAT | 25% (no reduced rate); registration above DKK 50,000 of sales in 12 months# Source: Danish Tax Agency: registering for VAT |
| Dividend withholding | 27% by law; US treaty 15%, 5% for a company with 10%+ of votes, 0% for 80%+ holdings meeting the LOB test# Source: Danish Tax Agency: dividends and dividend tax · IRS: US–Denmark income tax treaty (technical explanation of the 2006 protocol) |
| US tax treaty | Signed 1999, protocol 2006; saving clause lets the US tax its citizens# Source: IRS: Denmark tax treaty documents |
| Audit | Optional unless two of three are exceeded in two years: DKK 4M balance sheet, DKK 8M revenue, 12 employees# Source: Danish Business Authority: annual reports and audit |
| Annual report | Filed within 6 months of year-end (4 for listed companies)# Source: Danish Business Authority: annual reports and audit |
| Beneficial owners | Registered at formation, changes as soon as possible, reviewed yearly; over 25% as a starting point# Source: Danish Business Authority: beneficial owners |
| Formation and accounting costs | Online formation service about DKK 1,750 + fee; unaudited annual report about DKK 5,000–10,000 estimate# Source: Legal Desk: starting a company in Denmark as a foreigner (price list) · Radius Regnskab: accountant prices 2026 |
Not American?
Canadians, Australians, Brits and other non-EU citizens: the same rules apply
Danish company law is the same for every foreign founder, so Canadians, Australians, New Zealanders and Brits register an ApS exactly as described here. Only a few points differ:
- Canada
- Australia
- New Zealand
- United Kingdom
- Japan
- South Korea
- + other visa-free countries
| Living in Denmark | A company does not give you residence. Non-EU founders who want to live in Denmark need a permit, such as Start-up Denmark or a job-based permit. |
|---|---|
| Home-country tax | US citizens are taxed on worldwide income and have extra filings (Form 5471, FBAR, NCTI). Other nationals usually aren't taxed this way. |
| Tax treaty with Denmark | Denmark has income tax treaties with the US and many other countries, including Canada, Australia, New Zealand and the UK. |
| Documents from abroad | Need an apostille; the US, Canada (since 11 Jan 2024), the UK, Australia and NZ issue them.Source: HCCH: Apostille Convention status table |
At a Glance
Danish Company Formation in Numbers
Why Denmark
Why Americans Register Companies in Denmark
Denmark's institutions are among the world's most trusted: it topped Transparency International's corruption index again in 2025, and was 1st in the UN E-Government Survey 2024. Contracts are enforced, administration is digital and rules are published clearly.
Copenhagen is also a gateway to the Nordic markets — Sweden is across the Øresund Bridge, and Norway and Finland are a short flight away. For remote-first businesses, a country where government, banking and professional services run online is a practical advantage.
Business Structures
Which Entity Type Is Right for You?
The ApS — Denmark's private limited company — is the usual choice for foreign founders: modest capital, limited liability and online registration.
Private Limited Company
ApS — anpartsselskab
The standard choice for small and medium businesses and foreign founders. Minimum capital DKK 20,000 (since 2025), fully paid in. No residence rule for directors, and no board needed — management can be a single director.
- Min. capital
- DKK 20,000 (~€2,700)
- Management
- 1+ director, any residence
- Liability
- Limited to capital
Public Limited Company
A/S — aktieselskab
For larger businesses, institutional investors or a listing on Nasdaq Copenhagen. Needs a board and more complex governance.
- Min. capital
- DKK 400,000 (25% paid in)
- Governance
- Board required
Sole Proprietorship
Enkeltmandsvirksomhed
Free to register, but needs a CPR number and MitID, and the owner has unlimited liability. A non-EU citizen also needs a permit that allows self-employment.
- Min. capital
- None
- Liability
- Unlimited
Partnerships
I/S · K/S · P/S
I/S partners are all personally liable; a K/S has at least one general partner with unlimited liability; a P/S is a limited partnership with a company-style structure. Rarely used by non-resident founders.
- Min. capital
- None (P/S DKK 400,000)
- Liability
- Unlimited for general partners
Tax Environment
Denmark's Corporate Tax Framework (2026)
Danish companies pay a flat 22% corporate tax (26% for the financial sector). The government platform of June 2026 plans to cut the rate to 19% over three years, but no bill or start date exists yet. Denmark has a tax treaty with the United States (1999, amended by a 2006 protocol).
Denmark uses the krone (DKK), pegged to the euro at a central rate of DKK 7.46038 per euro. Under the US–Denmark treaty, dividends are taxed at 15% in general, 5% for a US company holding at least 10% of the votes, and 0% for a company holding 80% or more for 12 months that meets the limitation-on-benefits test. Dividends received by a Danish company from subsidiaries (10%+) are generally tax-exempt.
US citizens and Green Card holders are taxed on worldwide income. Owning a Danish ApS usually means Form 5471 and an FBAR if your foreign accounts exceed $10,000 in total. From tax years starting in 2026, GILTI has been renamed net CFC tested income (NCTI). Denmark's 22% rate is above the 18.9% high-tax threshold, so the high-tax exclusion is often available. The treaty's saving clause lets the US tax its citizens as if the treaty did not exist. Consult a US international tax adviser before incorporating.
Step-by-Step Process
How to Register a Company in Denmark
An ApS is registered online on virk.dk with the Danish Business Authority (Erhvervsstyrelsen). No notary is needed. The registration must be filed within 2 weeks of signing the founding document.
Choose your structure Decision
For most foreign founders the ApS is right. There is no residence rule for directors, so you can be the sole director from the US.
Check the company name ~1 day
The name must be distinctive, not misleading and include "ApS" (or "anpartsselskab"). Check the CVR register — and trademarks, which the authority does not check for you.
Sign the founding document and articles No notary
The founding document (stiftelsesdokument) and articles (vedtægter) are signed by the founders — no notary. The Danish Business Authority provides standard templates.
Pay in the capital Banking
Pay in the DKK 20,000 minimum (or more). The management declares the payment and keeps documentation, such as a bank confirmation. Danish banks carry out thorough due diligence, so prepare ownership and business documents.
File on virk.dk DKK 670
File within 2 weeks of signing; the fee is DKK 670. Self-service needs MitID (or an EU eID), so US founders without one usually file through a Danish lawyer or formation service. Digital filings usually get a CVR number quickly; in-kind contributions take longer.
Register for VAT Post-registration
Register for VAT on virk.dk once sales exceed DKK 50,000 in any 12-month period (or earlier, voluntarily). The rate is 25%.
Register as an employer (if hiring) If hiring
Register for payroll withholding (A-tax and labour-market contribution) and ATP. Employer social charges are low — ATP is DKK 297 a month for full-time staff, of which the employer pays DKK 198. Employees earn 25 days of paid holiday a year; there is no statutory minimum wage.
Costs & Fees
What Does It Cost to Register a Company in Denmark?
| Cost item | Notes | Amount |
|---|---|---|
| Registration fee | ApS or A/S filed digitally on virk.dk. | DKK 670 |
| Minimum capital (ApS) | Paid in full; can be used in the business after registration. | DKK 20,000 |
| Formation service | Online formation service for foreign founders (estimate). | from about DKK 1,750 |
| Lawyer-led formation | Tailored articles and filing for non-resident founders (estimate). | about DKK 3,000–15,000 |
| Annual report (unaudited) | Accountant's fee for a small ApS (estimate). | about DKK 5,000–10,000 |
Fees from the Danish Business Authority; service and accounting fees are market estimates. Source: Erhvervsstyrelsen: fees · Legal Desk · Radius Regnskab
Ongoing Obligations
Post-Registration Requirements
Annual report
File the annual report with the Danish Business Authority within 6 months of the financial year-end (4 months for listed companies). Late filing leads to fines for each member of management.
Corporate tax return
Due 6 months after the end of the income year; late filing costs DKK 400 a day, up to DKK 10,000. Residual tax is payable on 20 November.
Audit
A company can opt out of audit unless it exceeds two of these in two consecutive years — DKK 4 million balance sheet, DKK 8 million revenue, 12 employees.
Digital bookkeeping
Every ApS must keep its books in a digital bookkeeping system under the 2022 Bookkeeping Act.
Beneficial owners
Register beneficial owners (as a starting point, over 25%) at formation, update changes as soon as possible and review them at least once a year.
Expert Notes
What Americans Should Know Before Registering in Denmark
No local director needed
Danish law has no residence or nationality rule for directors. You don't need a nominee director — though a Danish contact can help with banking.
Plan how you will file
Self-service on virk.dk needs MitID or an EU eID. Without one, a Danish formation service or lawyer files for you — a small, predictable cost.
Watch where the company is managed
A Danish company is Danish tax-resident. If you run a US company from Denmark, it can also become Danish tax-resident — plan your structure with an adviser.
A company is not a visa
Owning an ApS does not let you live or work in Denmark. To move, you need a permit such as Start-up Denmark or a job-based permit.
The high-tax exclusion is often available
At 22%, Danish corporate tax is above the 18.9% threshold, so the NCTI high-tax exclusion can often remove the extra US layer on undistributed profits — confirm with your US adviser.
A Danish company is right for you if…
- You want a trusted, transparent European base with access to the EU and Nordic markets.
- You want simple online formation without a notary, and don't need a local director.
- You plan to sell to Scandinavian customers or hire in Denmark.
- Your structure can benefit from the 22% rate being above the US high-tax threshold.
- You are comfortable with 25% VAT and the krone.
FAQ
Frequently asked questions
What is the most common company type for foreigners in Denmark?
The ApS (private limited company). Minimum capital is DKK 20,000 since 1 January 2025, liability is limited, and it is registered online without a notary.
Does a Danish ApS need a Danish-resident director?
No. The Danish Companies Act has no residence or nationality requirement for directors or board members, and an ApS does not need a board.
How long does it take to register a company in Denmark?
Digital filings on virk.dk are usually registered quickly once complete. Without MitID, allow a few extra days for a Danish lawyer or formation service to prepare and file. The filing must be made within 2 weeks of signing the founding document.
What is the corporate tax rate in Denmark?
22% (26% for the financial sector). A cut to 19% over three years is planned in the June 2026 government platform, but no law has been passed.
When do I need to register for VAT in Denmark?
Once your VAT-able sales exceed DKK 50,000 in any 12-month period. The rate is 25%. Voluntary registration is possible.
Denmark
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Company formation · other countries
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