Starting a Business in Denmark as a Foreigner

Denmark consistently ranks in the top 5 globally for ease of doing business. Company registration takes one day. The legal and regulatory environment is transparent and predictable. Intellectual property protection is strong. The talent pool from Danish universities — engineering, design, computer science, life sciences — is genuinely world-class. And the proximity to the rest of Northern Europe is a significant commercial advantage.

For foreign founders, the process is accessible, though immigration status introduces additional steps for non-EU nationals.

Why Denmark Is Entrepreneur-Friendly

The practical reasons the Danish environment suits startups:

• Fast registration: An ApS can be registered in a single business day via virk.dk
• Strong IP protection: Danish courts enforce intellectual property rights reliably; the country is a signatory to all major international IP conventions
• English-language business environment: Contracts, negotiations, and investor communications routinely happen in English
• Access to EU market: Danish companies have full access to the EU single market
• Strong university R&D partnerships: DTU (Technical University of Denmark) and University of Copenhagen are active in technology transfer and startup spin-offs
• Active startup community: Copenhagen has Silicon Copenhagen (coworking and networking hub), Copenhagen Fintech, Denmark's Export and Investment Fund (EIFO, the main government venture fund), and a growing ecosystem of accelerators

The tax rate for companies (22% corporate tax) is competitive by EU standards. The challenge — and it is a real one — is that Denmark's high cost of living and labour costs mean that labour-intensive businesses are expensive to run. High-value-per-employee businesses (software, knowledge services, pharma R&D) are well-suited. Physical manufacturing or low-margin retail is harder to sustain.

Company Types: Which One to Choose

Enkeltmandsvirksomhed (Sole Proprietorship)

The simplest structure. One person, no minimum capital, personal liability. Appropriate for freelancers, consultants, and solo operators in low-liability businesses. Not the right structure if you want to bring in investors or partners, or if you have meaningful liability exposure.

ApS (Anpartsselskab — Private Limited Company)

The standard choice for startups and growth-oriented businesses. Key features:

• Minimum share capital: DKK 40,000 — this must be paid in at registration (can be used for business expenses immediately after incorporation)
• Liability limited to the company's assets — founders are not personally liable for company debts beyond their share capital investment (with some exceptions for fraud or improper management)
• Can have multiple shareholders and issue different classes of shares
• Required governance: At minimum a board of management (bestyrelse is optional but recommended for larger companies; a direktør/managing director is required)
• Annual accounts must be filed with Erhvervsstyrelsen (Danish Business Authority)

For most founders, ApS is the right choice. It protects personal assets, allows for investor participation, and is the structure investors expect to invest in.

A/S (Aktieselskab — Public Limited Company)

For larger companies, those intending to list on a stock exchange, or those raising substantial capital. Minimum share capital is DKK 400,000. The governance requirements are more complex and costly. Most startups do not use this structure until they are significantly larger.

Partnerships (I/S, K/S)

Used in specific situations — professional partnerships (law firms, consulting), private equity structures. Generally not the starting point for a product or tech startup.

How to Register an ApS: Step by Step

1. Prepare the articles of association (vedtægter): Templates are available on virk.dk. They can be customised but must include specific legally required provisions (company name, purpose, share capital, management structure, dividend rights, transfer restrictions if applicable).

2. Log in to virk.dk using your MitID (Danish digital ID). Non-Danish founders who do not yet have MitID can contact virk.dk support or in some cases submit via a Danish lawyer acting as agent.

3. Complete the registration form on virk.dk: company name, registered address, share capital amount, director details, industry code (CVR-branchekode).

4. Submit and pay the registration fee (approximately DKK 670 as of 2026).

5. Receive your CVR number — typically within 1 business day.

6. Open a business bank account and deposit the DKK 40,000 share capital. Some banks require the CVR number before opening the account; some allow provisional accounts during the registration window. Lunar Business and Anyday are the most startup-friendly for new companies.

7. Register for tax — via virk.dk, the tax registration links to your CVR number. Register for VAT (moms) when your expected turnover exceeds DKK 50,000/year.

The CVR Number

Your CVR number is your company's permanent identifier in Denmark — used on invoices, contracts, tax filings, and government registrations. Anyone can look up basic information about your company at cvr.dk.

Keep the CVR number on all business invoices — this is a legal requirement in Denmark.

Opening a Business Bank Account

Banking is one of the more friction-heavy steps for new foreign founders. Traditional Danish banks (Nordea, Danske Bank, Jyske Bank) have been known to decline accounts for new foreign-owned companies, particularly with non-EU owners, due to AML (anti-money laundering) compliance overhead.

The practical alternatives:

Lunar Business (lunar.app): Danish digital bank popular with startups. More accessible to new companies than traditional banks. Supports multi-user access, expense categorisation, and accounting integrations.

Revolut Business: Easy to open for EU-registered companies, multi-currency support useful for international revenue. Not a Danish bank but accepted by Danish tax authorities and clients.

Anyday: Another Danish digital banking option for businesses, simpler account structure.

For seed-stage startups needing only a bank account and basic transactions, a digital bank is the practical first step. As the company grows and if you seek significant lending, a relationship with a traditional bank becomes more relevant.

The Danish Startup Ecosystem

Key Organisations

Silicon Copenhagen: Major coworking and community hub in the heart of Copenhagen. Runs events, has office space, and connects startups to investors and talent.

Copenhagen Fintech: For fintech startups specifically — connects to major Danish financial institutions and international investors.

DTU Science Park (Lyngby): The main university-linked innovation environment. Active in deep tech, biotech, and engineering spin-offs.

StartVækst (startvaekst.dk): Government-linked startup support programme. Offers free initial advisory meetings, business plan review, and connections to follow-on resources.

EIFO (Export and Investment Fund of Denmark): The main government-backed fund for Danish companies. Provides loans and guarantees, and manages state venture capital participation. Not typically the first call for a seed-stage startup but important for later-stage capital.

Investors

The Copenhagen venture ecosystem is active but smaller than Stockholm or Berlin. Active investors include:

• Seed Capital: One of the leading early-stage VC funds in Denmark
• Heartland: Growth-stage investor focused on sustainable and tech businesses
• Danish Tech Challenge (DTECH): Corporate-backed accelerator for tech startups
• Accelerace: The largest startup accelerator in Scandinavia, based in Copenhagen and Aarhus

Immigration Status for Non-EU Founders

This is the most complex aspect for non-EU nationals.

If you are already in Denmark on a work permit: Your permit is typically tied to employment with a specific company. Starting your own company alongside that employment may be permitted in some cases but requires explicit permit conditions allowing self-employment. Check with the Danish Immigration Service (Udlændingestyrelsen) before registering a company.

If you want to relocate to Denmark specifically to start a business: The main pathway is the Start-up Denmark visa — a government programme allowing non-EU entrepreneurs to relocate to Denmark to build a startup. Requirements include:

• A concrete business plan that meets the criteria defined by an expert panel
• Proof of sufficient funding to sustain yourself while building the company
• The business must be innovative and have international growth potential
• Apply at nyidanmark.dk

Start-up Denmark applications are assessed by a panel of business experts. Rejection rates are significant. If your business plan is solid and internationally oriented, the pathway is real.

Working with a Danish co-founder who handles the initial registration and residency situation while you manage immigration separately is another practical approach used by some international founding teams.

For any non-EU founder navigating immigration for the purpose of starting a business, working with an immigration lawyer who specialises in business visas for Denmark is money well spent. The rules have specific conditions and exceptions that are not always clear from official documentation.