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Starting a Business in

Denmark

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Denmark. It examines the procedures, time and cost involved in launching a commercial or industrial firm with between 10 and 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016.

Compare Denmark to 189 other economies.

  • No. Procedure Time to Complete Associated Costs
    1

    Obtain a NemID signature

    Agency: Danish Agency for Digitisation

    The NemID can be obtained online on www.nemid.nu. A company may request up to 3 NemID signatures free of charge for its employees, and but any additional NemID signatures will be subject to a charge of DKK 80 per additional employee. There are also optional services available for purchase, such as first line support which costs DKK 89 each third month for every employee who has an employee NemID key card signature.

    NemID consists of a user ID, password, and a key card with "keys" (time codes). When an employee logs on, he or she must enter user ID and password, and then a key from the key card. An Employee NemID key card signature indicates that the company employee is authorized to do the following:

    - contact public authorities on behalf of the company;
    - access secure government portals;
    - sign government documents and forms;
    - receive access to information that is made available by a public authority;
    - send and receive encrypted and signed emails;
    - access company's data from government portals via home office.

    Less than one day (online procedure) no charge
    2

    Deposit startup capital at a bank

    Agency: Commercial Bank

    A private limited company (ApS) must have a startup capital of at least DKK 50,000.00. An amount equal to 25% of the share capital, but not less than DKK 50,000.00, is required as paid-in minimum capital. According to the Danish Companies Act section 33, (1), as of March 15, 2015, upon registration, companies may deposit partial paid-in minimum capital with the bank, rather than making the lump sum deposit.

    1 day no charge
    3

    Register the company with the Danish Business Authority (DBA) Webreg system

    Agency: Danish Business Authority

    The Danish Business Authority (DBA) provides limited liability companies with a one-stop, centralized online registration service for business and tax registration. Companies fill out a registration form and submit the Memorandum of Association and the Articles of Association at https://indberet.virk.dk/ To secure payment of the startup capital, company representatives confirm the type and amount of capital by using their NemID (digital signature).

    According to an amendment from December 15, 2014 to the Danish Companies Act, companies must also register the ownership, voting rights, or pledge of 5% or more of a company's shares in the public register of shareholders, which can be done at the same time as company registration and on the same website at https://indberet.virk.dk//

    When the registration process is completed, the client receives a registration receipt via email containing a unique business identification number (CVR), which reflects business registration and tax registration. Confirmation of registration may be accessed at https://datacvr.virk.dk/data and at the electronic National Gazette (https://www.statstidende.dk/.)

    According to section 48 of the Danish Value Added Tax Act, companies are required to register for VAT when turnover exceeds DKK 50,000 within a period of 12 months. In that case, registration is done through DBA at the same online portal: https://indberet.virk.dk/.

    Less than one day (online procedure) DKK 670 (online registration) or DKK 2,150 (paper registration)
    4

    Register employees with workmen's insurance

    Agency: Private Insurance Company

    Employees must be insured against industrial accidents and occupational illnesses. The terms of the insurance depends on the private insurance company. The chosen insurance company must complete a form and register the insurance policy with the DBA. If the new business has a car, motor insurance must also be purchased. More information on insurance companies can be found at www.forsikringogpension.dk.

    1 day no charge