By the US GO EU Danish Team · Last updated July 13, 2026
22%
Corporate income tax rate — moderate by Western European standards and structurally competitive for international businesses
1–5
Business days to register — Denmark's fully online Virk portal makes it one of the fastest EU jurisdictions for company formation
#1
Consistently ranked among the world's top-rated business environments for transparency, ease of doing business, and rule of law
Why Americans Register Companies in Denmark
Denmark's reputation for institutional quality is among the strongest in the world. Its legal system is transparent, predictable, and effectively enforced. Corruption is exceptionally low. The regulatory environment for businesses is clear and efficiently administered. For American entrepreneurs who prioritize working within a system they can trust — where contracts are honoured, disputes are resolved fairly, and administration is digital — Denmark is genuinely exceptional.
The country's position as a gateway to Scandinavia and the Nordic markets adds strategic value: Sweden, Norway, and Finland are all accessible from Denmark, and Copenhagen serves as the primary hub for business activity across the region. Denmark is also one of Europe's most digitalised economies — a practical advantage for remote-first businesses that benefit from operating in an environment where government services, banking, and professional services are all available online.
Business StructuresWhich Entity Type Is Right for You?
Danish company law offers several structures. The ApS — Denmark's private limited company — is the clear choice for foreign entrepreneurs and the vast majority of American-owned businesses registering in Denmark. Its accessible share capital requirement, limited liability, and straightforward online registration make it the default structure for non-resident founders.
Most Popular★ Recommended for Americans
Private Limited Company
ApS — Anpartsselskab
The standard choice for small to medium-sized businesses and foreign entrepreneurs. Liability is limited to contributed share capital. Minimum share capital of 40,000 DKK (approximately €5,400). Can be fully registered online through the Virk portal. Widely recognised and respected in the Danish and Scandinavian business community.
Larger Businesses
Public Limited Company
A/S — Aktieselskab
For larger businesses seeking institutional investment or planning a public listing on Nasdaq Copenhagen. Can issue shares to the public. Requires significantly higher minimum share capital and more complex governance — including both a board of directors and an executive board. Not suitable for most initial foreign registrations.
Sole Traders
Sole Proprietorship
Enkeltmandsvirksomhed
For individuals operating independently. No separation between personal and business assets — the owner bears unlimited liability for all business debts. Simple to register but financially exposed. Generally requires Danish residency to operate as a sole trader, making it unsuitable for most non-resident Americans. The ApS is the better structure even for solo operators.
Partnerships
General / Limited Partnership
I/S / K/S — Interessentskab / Kommanditselskab
Partnership structures for two or more partners. All partners in an I/S bear unlimited personal liability. The K/S (limited partnership) allows limited partners to cap liability to their capital contribution while general partners retain full liability. Used for specific professional or investment fund structures. Rarely chosen by non-resident founders for general business operations.
Denmark's Corporate Tax Structure
Denmark applies a flat 22% corporate income tax to the taxable profits of Danish-resident companies. This rate is moderate by Western European standards — lower than Belgium (25%), France, or Germany when combined trade taxes are included — and applies uniformly without graduated bands. Denmark has an active double taxation treaty with the United States, which is particularly relevant for American shareholders receiving dividends from Danish companies.
Danish Corporate Tax — Key Numbers
Denmark Tax Framework
22%
Flat corporate income tax — applied uniformly to all taxable profits of Danish tax-resident companies; no graduated bands
25%
Standard VAT rate (Moms) — one of the highest in the EU; mandatory registration when annual turnover exceeds 50,000 DKK (~€6,700)
27%
Standard withholding tax on dividends to non-resident shareholders — reduced to 15% or 0% under the US-Denmark tax treaty depending on structure
Denmark uses the Danish krone (DKK), which is pegged to the euro under the European Exchange Rate Mechanism (ERM II) — providing effective exchange rate stability without full Eurozone membership. Denmark has an active double taxation treaty with the United States, providing reduced withholding tax rates on dividends, interest, and royalties. Denmark's participation exemption generally exempts qualifying dividends received by Danish holding companies from corporate tax. The low VAT registration threshold of 50,000 DKK (approximately €6,700) means most businesses should plan for VAT registration from the outset. Watch this space: Denmark's new government announced a coalition agreement on 2 June 2026 proposing to cut the corporate tax rate by 3 percentage points over three years, from 22% to 19% — but as of this writing the timing of the first reduction (and whether it starts in the 2026 or 2027 tax year) has not yet been specified. The 22% rate remains in effect today; confirm current status before finalising long-term tax projections.
⚠️ US Tax Obligations Apply to Danish Company Owners
US citizens and Green Card holders are taxed by the United States on worldwide income regardless of where their business is incorporated. Owning a Danish ApS creates US filing obligations — including FBAR reporting for Danish bank accounts over $10,000, Controlled Foreign Corporation (CFC) reporting, and GILTI (Global Intangible Low-Taxed Income) provisions. At 22%, Denmark's corporate tax rate is above the GILTI high-tax exclusion threshold of 18.9%, meaning Danish company profits are likely to qualify for the GILTI high-tax exclusion — potentially eliminating the additional US tax layer on undistributed Danish profits. The US-Denmark tax treaty provides important additional relief on withholding taxes. Confirm treatment with a US-qualified cross-border tax advisor before incorporating.
How to Register a Company in Denmark
Denmark's company registration process is one of the most digitally advanced in the EU. Registration of an ApS is completed online through the Virk portal — the Danish Business Authority's unified business registration platform. The process is efficient and transparent, and typically takes just 1 to 5 business days once all information is submitted. No notary is required for a standard ApS registration.
1
Choose Your Business Structure and Address the Director Residency Requirement
For most foreign entrepreneurs and Americans, the ApS is the correct choice. Before proceeding, address the director residency requirement: at least one member of the company's management board must have a registered address in Denmark, the EU/EEA, or a country with a bilateral agreement with Denmark. Non-resident American founders who cannot satisfy this requirement will need to appoint a local nominee director or a co-director with a qualifying address. This is a standard arrangement managed by Danish corporate service providers.
Decision + residency check
2
Choose and Check Your Company Name
The company name must be unique within the Danish business register, must not be misleading, and must include the entity type designation (e.g., "ApS" or "A/S"). Name availability can be checked through the Danish Business Authority (Erhvervsstyrelsen) database before filing. The Virk registration portal checks name availability automatically during the registration process. Ensure the name complies with Danish naming regulations — names identical or confusingly similar to existing registered entities will be rejected.
~1 day
3
Prepare the Articles of Association (Vedtægter)
The Articles of Association (Vedtægter) is the founding document outlining the company's name, registered office, purpose, share capital structure, and governance rules. For a Danish ApS, the articles do not require notarization — they are submitted digitally through the Virk portal as part of the registration application. Standard template articles are available through the Danish Business Authority, though tailor-made articles prepared by a Danish attorney are recommended for non-standard ownership or governance arrangements.
No notarization required
4
Open a Corporate Bank Account and Deposit Share Capital
Open a corporate bank account with a Danish bank and deposit the required share capital of 40,000 DKK (approximately €5,400) before or alongside submitting the registration application. The bank will confirm the deposit, and this confirmation must be included in the Virk registration. Danish banks apply AML due diligence to new accounts — non-resident founders should prepare thorough documentation on ownership structure, business purpose, and expected transaction volumes. Some non-resident founders use EU-licensed fintech business accounts as a bridge while establishing traditional Danish banking.
Banking
5
Submit Registration via the Virk Portal
Submit the complete registration application — including the Articles of Association, identification of shareholders and directors, proof of registered office address, and bank confirmation of share capital deposit — through the Virk.dk portal operated by the Danish Business Authority (Erhvervsstyrelsen). Registration requires a NemID or MitID digital signature for Danish residents; non-residents can register through a Danish attorney or corporate service provider acting as an authorised agent. Once approved, the company receives its CVR number (Central Business Register number) — the unique identifier used for all Danish tax and administrative purposes.
1–5 business days
6
Register for VAT (Moms) with the Danish Tax Agency
If your expected annual taxable turnover will exceed 50,000 DKK (approximately €6,700), register for VAT (Moms) with the Danish Tax Agency (Skattestyrelsen). Given the low threshold, most businesses should plan for VAT registration from the outset rather than waiting to cross it. VAT registration can be initiated during the Virk registration process or separately through Skattestyrelsen's online services. The standard Danish VAT rate is 25% — one of the highest in the EU — and applies to most goods and services.
Post-registration or simultaneous
7
Register for Payroll Tax and Social Security (if hiring)
If your company will hire employees in Denmark, register with the Danish Tax Agency (Skattestyrelsen) for payroll withholding tax (A-skat) and with the relevant pension and insurance schemes. Danish employer social security contributions include contributions to ATP (the statutory supplementary pension scheme) and other mandatory schemes. Employment contracts must comply with Danish labour law, and employees are entitled to strong statutory rights including minimum holiday entitlements and notice periods.
If hiring
What Does It Cost to Register a Company in Denmark?
Denmark is one of the more cost-efficient EU jurisdictions for company formation — particularly because no notarization is required for an ApS. The primary fixed cost for non-residents is the share capital deposit of 40,000 DKK, which remains as company capital rather than being a fee. Ongoing professional costs are competitive by Scandinavian standards.
| Cost Item | Notes | Est. Amount |
|---|---|---|
| Virk registration fee | Government fee for registering an ApS through the Danish Business Authority. No notary fee required for a standard ApS. | ~670 DKK (~€90) |
| Minimum share capital (ApS) | 40,000 DKK (~€5,400) must be deposited before registration. Remains as company capital — not a fee. | 40,000 DKK (~€5,400) |
| Registered office address | Every Danish company requires a local registered address. Virtual office services are available in Copenhagen and other cities. | €400–€900/yr |
| Local director / nominee fee | Required if no founder has an address in Denmark, the EU/EEA, or a qualifying country. Standard arrangement with corporate service providers. | €500–€1,500/yr |
| Legal & advisory fees | Attorney or corporate service provider assistance with Virk registration, MitID authorization, and Articles of Association. Recommended for non-residents. | €600–€1,800 |
| Accounting & annual compliance | Annual financial statements and tax returns mandatory. Statutory audit required for larger companies exceeding Danish size thresholds. | €1,000–€3,000/yr |
Post-Registration Requirements
Danish companies face clear and well-structured ongoing compliance obligations. Annual reporting is mandatory, the company register is publicly accessible, and Denmark's digital government infrastructure makes most compliance tasks manageable online. Professional accounting support is recommended for non-resident owners.
Annual Financial Statements & Tax Returns
All Danish ApS companies must prepare annual financial statements in accordance with the Danish Financial Statements Act (Årsregnskabsloven) and file corporate income tax returns with the Danish Tax Agency (Skattestyrelsen). Annual financial statements must be submitted to the Danish Business Authority and are publicly accessible through the CVR register. The filing deadline is typically 5 months after the end of the financial year.
Corporate Governance — Management Board
A Danish ApS must have at least one member of a management board (direktion) whose address is in Denmark, the EU/EEA, or a qualifying country. The management board is responsible for the day-to-day management of the company. A supervisory board (bestyrelse) is optional for most ApS companies but mandatory for larger companies exceeding Danish size thresholds.
Accounting Records
Danish companies must maintain accounting records in accordance with Danish accounting standards. A statutory audit (revision) is required for companies that exceed two of the following thresholds in two consecutive years: annual turnover above 89 DKK million (~€12M), total assets above 44 DKK million (~€6M), or more than 50 full-time employees. Smaller companies are exempt from mandatory audit but may opt for a review engagement.
Register of Actual Owners (Reelt Ejerskab)
Denmark maintains a central register of beneficial owners in line with EU AML directives. All companies must register their ultimate beneficial owners — individuals owning or controlling more than 25% of the company — within two weeks of registration and keep this information current. The register is publicly accessible through the CVR portal. Annual confirmation of ownership data is required.
What Americans Should Know Before Registering in Denmark
The director address requirement is a practical hurdle — but easily managed
Denmark's requirement that at least one member of the ApS management board has a registered address in Denmark, the EU/EEA, or a qualifying country is a non-obvious compliance point for American founders who plan to be the sole director. It does not mean you cannot own and control the company — it means the formal director registration needs to satisfy the address condition. The standard solution is to engage a Danish corporate service provider to supply a local nominee director, who acts as the registered director while you retain full economic ownership and operational control through a separate shareholders' agreement. This arrangement is entirely standard and widely used in Denmark.
Virk registration requires MitID — non-residents need a local agent
Denmark's Virk registration portal requires authentication via MitID (Denmark's national digital identity system) or NemID. Non-resident foreigners who do not have a Danish personal number (CPR number) cannot independently obtain MitID and therefore cannot self-register through Virk without first becoming a Danish resident. In practice, non-resident Americans register through a Danish corporate service provider or attorney who acts as an authorised agent and submits the registration on their behalf. This adds a coordination step but does not significantly slow the process — Danish corporate service firms are experienced in handling international registrations.
The 25% VAT rate and low threshold mean VAT planning is essential from day one
Denmark's standard VAT rate of 25% is among the highest in the EU, and the registration threshold of 50,000 DKK (approximately €6,700) is very low — equivalent to just a few months of revenue for almost any viable business. Most Danish companies should register for VAT before making their first invoice rather than waiting to cross the threshold. For B2B businesses invoicing other VAT-registered EU companies, the VAT is largely a pass-through. For consumer-facing businesses, the 25% rate is a meaningful pricing consideration that should be built into your pricing model from the outset.
The DKK is pegged to the euro — effective stability without Eurozone membership
Denmark is an EU member but has permanently opted out of the Eurozone — the Danish krone (DKK) is the official currency. However, Denmark participates in the European Exchange Rate Mechanism (ERM II) with a tight peg to the euro at 7.46 DKK per euro, maintained by the Danish National Bank (Danmarks Nationalbank). In practice, the DKK-EUR exchange rate is among the most stable in the world. For businesses with euro-denominated revenues or costs, FX conversion applies, but the effective rate volatility is minimal compared to other non-euro EU currencies such as the Czech koruna or Polish zloty.
Denmark's 22% CIT likely qualifies for the GILTI high-tax exclusion — a meaningful advantage
At 22%, Denmark's corporate tax rate is above the GILTI high-tax exclusion threshold of 18.9%. Danish company profits are therefore likely to qualify for the GILTI high-tax exclusion, potentially eliminating the additional US tax layer on undistributed Danish earnings. Combined with the US-Denmark tax treaty's reduced withholding rates on dividends (15% standard, reduced under the treaty for qualifying shareholdings), Denmark is one of the more US-tax-efficient premium Western European jurisdictions in which to incorporate. Confirm current treatment with a US-qualified cross-border tax advisor, as the exclusion must be actively elected and verified each year.
Registering a Danish Company Is Right for You If…
- →You want one of Europe's most internationally trusted and respected business addresses — in a jurisdiction consistently ranked at the top for transparency, rule of law, and ease of doing business.
- →You value fast, fully online company registration without mandatory notarization — the Virk portal makes Denmark one of the most efficient EU jurisdictions for formation.
- →You need access to Scandinavian and Nordic markets alongside the full EU single market — Denmark is the natural gateway to Sweden, Norway, Finland, and the broader Nordic business ecosystem.
- →Your business benefits from operating in a highly digitalised economy with world-class digital government infrastructure, strong English-language proficiency, and a well-educated professional workforce.
- →You have taken US cross-border tax advice confirming that Denmark's 22% CIT qualifies for the GILTI high-tax exclusion in your structure — enabling efficient retention of Danish profits without additional US tax.
We work with trusted Danish corporate attorneys and accountants who specialise in company formation for non-EU nationals. From Virk registration and the director address requirement to banking setup, VAT registration, and ongoing compliance — we guide you through every step, with full awareness of the US cross-border tax considerations relevant to Danish company ownership.