how to start a business in Denmark
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Af 8 min læsetidSidst opdateret: 27. februar 2024

The Expat Manual: Starting a Business in Denmark

So you’ve arrived to the country of bikes, pigs and high-end pastry. Welcome aboard!

Once you’ve filled up your camera roll with pictures of Nyhavn by night, experienced the unapproachable and slightly hostile Danes and eaten your way through the gastro-scene, you know what time it is. 

Business time!

If you’ve landed here, we guess there’s a purpose behind the madness and we don’t need to spill too much ink convincing you about the wonders of being your own boss, or share ideas on small businesses you can start. Whether that comes in the form of freelancing, solopreneur, small business owner, or your own fancy title.

Create free account

Start you Danish freelance journey with Factofly

Factofly is the preferred choice for more than 8.000 freelancers (Danish and expats), who focus 100% on their business and spend zero time on admin.

Create free account
So let’s get straight to it, and take you through your options when you are pondering how to start a business in Denmark.

There are a few boxes you need to have checked when you arrive in Denmark. 

This article is your guide to getting off the ground as a freelancer in Denmark, but we have compiled a list for you here – just in case.

  • CPR number
  • Residence permit
  • Bank account
  • Accommodation
  • Health insurance
  • Tax card
  • Work permit (if applicable)
  • Registration with local authorities

How do I start a company in Denmark?

Registering a business in Denmark is a relatively pain free procedure.

That being said, it’s all the things that follow you need to pay attention to. Including, but certainly not limited to, VAT reporting, insurance coverage, business bank account, and annual reporting.

Denmark is not overly bureaucratic (looking at you Germany), but starting and running a business will inevitably test your admin muscles, and ditto patience, regardless.

Depending on the type of business you plan on starting, you have two options.

The Do-It-Yourself and the Done-For-You way.

Let’s break it down.

Option 1: Done-for-you

If you meet a few criteria, you are met with the luxury of choosing easy mode for your solo-business with an invoicing service. At least the boring admin part of it.

The smartest solopreneurs run their business through Factofly. An especially efficient option when you are a new freelancer in Denmark.

Factofly is the leading umbrella company in Denmark with more than 8.000 users (and counting), and is probably the easiest way to get started if you run a solo business where you sell your time.

In all its simple glory, Factofly is a service that helps freelancers and solopreneurs run their business without registering a formal company. (That’s the CVR number stuff if this is your first article on running a business in Denmark.)

With Factofly you are in charge of finding the clients. You will then be employed on a project basis, invoice the client straight from your Factofly account and get your money paid out as a normal salary.

Factofly will make sure you are:
  • Insured while working
  • Fully compliant
  • Getting paid
  • Not touching anything admin

Factofly is designed for freelancers, side hustlers, and solopreneurs looking for a friction-free way to run their business. You can see if you fit the bill here. 

If you plan on selling physical goods and/or run a physical store, have employees etc. Factofly is not the right match to you.

You are up and running within a few minutes. Setting up your Factofly account is a quick procedure, and you only have to use your email to sign up. When starting to use Factofly you’ll get send a contract for you to sign with MitId.

Factofly is a pay-as-you-go service charging a 6% service fee on your invoice. 

If you need more details on our simple fee structure, you can visit our pricing site here.

None. Factofly is a pay-as-you-go service and you can stop using Factofly from one day to the next.

We have an extensive FAQ you can find here. Or you are welcome to book a video call via Calendly here, shoot us a message in the chat, email us at kontak[at]factofly.com, or call us at +45 71 96 00 54. Phones are open every day from 9 to 17. 

Option 2: Do-it-yourself

If Factofly isn’t the right fit for you, or you just feel like handling things on your own, there’s the traditional route for you, where you can invoice as a private individual or start a business. 

When starting a business, you register your company at virk.dk, get a business account with your bank, the right insurance for the business, find a bookkeeper and/or accountant, figure out how to file VAT, figure out how to report tax as a freelancer and of course all the other stuff you need to be on top of.

If you want to go down this path, you can find extensive guides on how to get started here, here and here

When does it make sense to register a company in Denmark?

We’re not saying that you shouldn’t pick the CVR number route, just cracking a tiny door open to let you know that you do have options to make things easy for yourself.

We know how things can feel overwhelming when you’ve first arrived in a new country, and on top of that you want to run your own business as well.

This article has a not so hidden agenda of presenting you with the option of Factofly when considering to start freelancing in Denmark. Make sure to do your own research, and if you need help figuring out if Factofly is the right choice for you, you can always reach out to us for a casual chat.

Whatever decision you make can have significant implications for your legal responsibilities, tax obligations, and overall business operations.

Let’s look at the pros and cons for both pathways to help you make an informed decision.

Formal Business Registration (CVR Number Route):
  • Legal Recognition: Registering your business grants it legal recognition. This can enhance credibility with clients, suppliers, and financial institutions.
  • Tax Obligations: A registered business must adhere to Denmark’s tax regulations, including VAT reporting and income tax. This requires meticulous record-keeping but ensures compliance with Danish laws.
  • Potential for Growth: A registered business can more easily scale, hire employees, and expand its operations, compared to most non-registered entities.
  • Administrative Overhead: Be prepared for more paperwork and compliance requirements, including annual reports and tax filings.
Running your business with Factofly (aka not registering your business):
  • Simplicity and Flexibility: Operating without formal registration is simpler, with fewer bureaucratic hurdles. This can be ideal for freelancers or small-scale entrepreneurs.
  • Limited Scope: Without registration, your business activities might be limited. More specifically, if you want to hire employees, the Factofly route might not be best suited for you in the long run.
  • Tax Implications: While you avoid the complexities of business taxes, Factofly will report your income as a “normal” employee. You have the opportunity to get deductions with Factofly, but you might miss out on certain tax benefits available to a registered businesses.
  • Credibility Challenges: Some clients and partners may prefer or require working with a registered business for contractual and trust reasons. It is usually not an invoice for Factofly users, but we have to mention it just in case.
Making the Right Choice

Consider your long-term business goals, the nature of your work, and your readiness to handle administrative tasks. If you value simplicity and prefer to run a solo business, not registering and using Factofly instead might suit you. However, if you plan to hire employees, or engage in significant transactions, registering your business would be more advantageous.

Remember, this decision is not set in stone. Many entrepreneurs start with Factofly and transition to a formal business structure as their operations grow. Whichever path you choose, make sure to stay informed about the legal and tax implications to ensure compliance and the smooth running of your business.



Create free account

Start you Danish freelance journey with Factofly

Factofly is the preferred choice for more than 8.000 freelancers (Danish and expats), who focus 100% on their business and spend zero time on admin.

Create free account

How much does it cost to register a business in Denmark?

The cost of starting a business in Denmark depends on the company structure you are considering. 

There are a range of different company types in Denmark ranging from a Public Limited Liability Company to one with sole proprietorship. 

Start capital ranges from zero kroner down to 400.000 DKK. 

If you are looking for the extended list of company types in Denmark, you can hop on over to Virk and browse through your options.

how to start a business in Denmark
Af 8 min læsetidSidst opdateret: 27. februar 2024

The Expat Manual: Starting a Business in Denmark

So you’ve arrived to the country of bikes, pigs and high-end pastry. Welcome aboard!

Once you’ve filled up your camera roll with pictures of Nyhavn by night, experienced the unapproachable and slightly hostile Danes and eaten your way through the gastro-scene, you know what time it is. 

Business time!

If you’ve landed here, we guess there’s a purpose behind the madness and we don’t need to spill too much ink convincing you about the wonders of being your own boss, or share ideas on small businesses you can start. Whether that comes in the form of freelancing, solopreneur, small business owner, or your own fancy title.

Create free account

Start you Danish freelance journey with Factofly

Factofly is the preferred choice for more than 8.000 freelancers (Danish and expats), who focus 100% on their business and spend zero time on admin.

Create free account
So let’s get straight to it, and take you through your options when you are pondering how to start a business in Denmark.

There are a few boxes you need to have checked when you arrive in Denmark. 

This article is your guide to getting off the ground as a freelancer in Denmark, but we have compiled a list for you here – just in case.

  • CPR number
  • Residence permit
  • Bank account
  • Accommodation
  • Health insurance
  • Tax card
  • Work permit (if applicable)
  • Registration with local authorities

How do I start a company in Denmark?

Registering a business in Denmark is a relatively pain free procedure.

That being said, it’s all the things that follow you need to pay attention to. Including, but certainly not limited to, VAT reporting, insurance coverage, business bank account, and annual reporting.

Denmark is not overly bureaucratic (looking at you Germany), but starting and running a business will inevitably test your admin muscles, and ditto patience, regardless.

Depending on the type of business you plan on starting, you have two options.

The Do-It-Yourself and the Done-For-You way.

Let’s break it down.

Option 1: Done-for-you

If you meet a few criteria, you are met with the luxury of choosing easy mode for your solo-business with an invoicing service. At least the boring admin part of it.

The smartest solopreneurs run their business through Factofly. An especially efficient option when you are a new freelancer in Denmark.

Factofly is the leading umbrella company in Denmark with more than 8.000 users (and counting), and is probably the easiest way to get started if you run a solo business where you sell your time.

In all its simple glory, Factofly is a service that helps freelancers and solopreneurs run their business without registering a formal company. (That’s the CVR number stuff if this is your first article on running a business in Denmark.)

With Factofly you are in charge of finding the clients. You will then be employed on a project basis, invoice the client straight from your Factofly account and get your money paid out as a normal salary.

Factofly will make sure you are:
  • Insured while working
  • Fully compliant
  • Getting paid
  • Not touching anything admin

Factofly is designed for freelancers, side hustlers, and solopreneurs looking for a friction-free way to run their business. You can see if you fit the bill here. 

If you plan on selling physical goods and/or run a physical store, have employees etc. Factofly is not the right match to you.

You are up and running within a few minutes. Setting up your Factofly account is a quick procedure, and you only have to use your email to sign up. When starting to use Factofly you’ll get send a contract for you to sign with MitId.

Factofly is a pay-as-you-go service charging a 6% service fee on your invoice. 

If you need more details on our simple fee structure, you can visit our pricing site here.

None. Factofly is a pay-as-you-go service and you can stop using Factofly from one day to the next.

We have an extensive FAQ you can find here. Or you are welcome to book a video call via Calendly here, shoot us a message in the chat, email us at kontak[at]factofly.com, or call us at +45 71 96 00 54. Phones are open every day from 9 to 17. 

Option 2: Do-it-yourself

If Factofly isn’t the right fit for you, or you just feel like handling things on your own, there’s the traditional route for you, where you can invoice as a private individual or start a business. 

When starting a business, you register your company at virk.dk, get a business account with your bank, the right insurance for the business, find a bookkeeper and/or accountant, figure out how to file VAT, figure out how to report tax as a freelancer and of course all the other stuff you need to be on top of.

If you want to go down this path, you can find extensive guides on how to get started here, here and here

When does it make sense to register a company in Denmark?

We’re not saying that you shouldn’t pick the CVR number route, just cracking a tiny door open to let you know that you do have options to make things easy for yourself.

We know how things can feel overwhelming when you’ve first arrived in a new country, and on top of that you want to run your own business as well.

This article has a not so hidden agenda of presenting you with the option of Factofly when considering to start freelancing in Denmark. Make sure to do your own research, and if you need help figuring out if Factofly is the right choice for you, you can always reach out to us for a casual chat.

Whatever decision you make can have significant implications for your legal responsibilities, tax obligations, and overall business operations.

Let’s look at the pros and cons for both pathways to help you make an informed decision.

Formal Business Registration (CVR Number Route):
  • Legal Recognition: Registering your business grants it legal recognition. This can enhance credibility with clients, suppliers, and financial institutions.
  • Tax Obligations: A registered business must adhere to Denmark’s tax regulations, including VAT reporting and income tax. This requires meticulous record-keeping but ensures compliance with Danish laws.
  • Potential for Growth: A registered business can more easily scale, hire employees, and expand its operations, compared to most non-registered entities.
  • Administrative Overhead: Be prepared for more paperwork and compliance requirements, including annual reports and tax filings.
Running your business with Factofly (aka not registering your business):
  • Simplicity and Flexibility: Operating without formal registration is simpler, with fewer bureaucratic hurdles. This can be ideal for freelancers or small-scale entrepreneurs.
  • Limited Scope: Without registration, your business activities might be limited. More specifically, if you want to hire employees, the Factofly route might not be best suited for you in the long run.
  • Tax Implications: While you avoid the complexities of business taxes, Factofly will report your income as a “normal” employee. You have the opportunity to get deductions with Factofly, but you might miss out on certain tax benefits available to a registered businesses.
  • Credibility Challenges: Some clients and partners may prefer or require working with a registered business for contractual and trust reasons. It is usually not an invoice for Factofly users, but we have to mention it just in case.
Making the Right Choice

Consider your long-term business goals, the nature of your work, and your readiness to handle administrative tasks. If you value simplicity and prefer to run a solo business, not registering and using Factofly instead might suit you. However, if you plan to hire employees, or engage in significant transactions, registering your business would be more advantageous.

Remember, this decision is not set in stone. Many entrepreneurs start with Factofly and transition to a formal business structure as their operations grow. Whichever path you choose, make sure to stay informed about the legal and tax implications to ensure compliance and the smooth running of your business.



Create free account

Start you Danish freelance journey with Factofly

Factofly is the preferred choice for more than 8.000 freelancers (Danish and expats), who focus 100% on their business and spend zero time on admin.

Create free account

How much does it cost to register a business in Denmark?

The cost of starting a business in Denmark depends on the company structure you are considering. 

There are a range of different company types in Denmark ranging from a Public Limited Liability Company to one with sole proprietorship. 

Start capital ranges from zero kroner down to 400.000 DKK. 

If you are looking for the extended list of company types in Denmark, you can hop on over to Virk and browse through your options.