In Denmark, it is very easy to register a new business and many institutions can help you in the process of building it. Check out this link to discover opportunities in your municipality.
First, choose a name, create a logo and decide if you want to protect them.
- When you choose your company name, make sure you googled it first, you checked it on CVR and then on the Danish Patent and Trademark office.
- Your name and logo represent your trademark. You can choose to protect them (so others cannot use them) by applying to the Danish Patent and Trademark office. It takes 8-12 weeks to process an application and it costs 2,000 dkk. Once approved, you can use the ® symbol after your name and license it to others if you wish.
Second, register a patent if you bring a new product/solution on the market, to protect your invention.
- You can apply for a patent at the Danish Patent and Trademark office. It can take one to three years before a patent is approved. Your patent is valid for up to 20 years (as long as you pay the yearly fee). It costs 3000 dkk to apply.
Third, choose the legal form of your business. Your possibilities are related to the number of owners, the degree of responsibility and starting capital.
- If you make under 50,000 dkk/year, you are not required to register your business. However, if you wish to have a CVR number, you can register as PMV (Personally Owned Small Business). As a PMV, you do not charge VAT (“Moms”). The limitations are: you cannot hire; you cannot export/import from outside the European Union and you can only have one PMV (at once). Obs! All forms of business in Denmark need to do bookkeeping and keep receipts/invoices for five years.
- The most popular legal form for new businesses is “Enkeltmandsvirksomhed” (Sole proprietorship). This can be possible if you are the only owner. It is free to register and there is no capital requirement. The limitation is that you are liable for the debt incurred by your company (debt collectors can take anything of value you own). Your revenue is taxed as personal income. Obs! You can deduct your losses from your taxes. You can apply for a corporate tax scheme (VSO) if you wish to pay the corporate tax instead or partly (which is at 22%).
- If you don’t want to be liable for the debt incurred by your company, you can set up an “anpartsselskab” (ApS) which is a limited liability company. There can be one or more owners. You need a starting capital of 40,000 dkk (or assets of this value) which can be invested. You need to create a “Stiftelsesdokument ApS” (founding document). Make sure to not use the company’s funds for private use as that is illegal. You must submit an annual account to the Danish Business Authority.
Last step, go to virk.dk and register your company. It takes less than 15 minutes to register and you get a CVR number (Central Business Register) within a week. The VAT number (that you need to sell/buy products from abroad) is your CVR number with “DK” in front. Choosing the industry code is not very important, as you can do several, unrelated, business operations in the same company.
