Do you need a CVR number as a freelancer?
If you're just starting out or considering becoming a freelancer, you might be asking yourself, "Do you need a company registration number as a freelancer?"
A freelancer is essentially a self-employed worker, but there are different ways of being a freelancer that affect whether you need a business registration number. Maybe you've been invoicing as a private individual and earning less than 50,000 DKK per year, but now your business has grown.
You can either choose to work as a freelance employee or as a self-employed freelancer. In both situations, you don't need to create a CVR number. As a self-employed freelancer, you can choose to handle everything yourself with a CVR number, or you can "borrow" a third-party CVR number, typically through a platform like Factofly, and let them handle the invoicing and all the administration.
When do you need a CVR number as a freelancer?
You must have a CVR number if your company has an annual turnover of more than DKK 50,000. If your turnover is less than DKK 50,000 per year, registering your business with a CVR number is optional. Although it's not mandatory for businesses with lower turnover, it can still be beneficial to register.
However, it is possible, and in some cases may be an advantage, to create a CVR number and register for VAT even if your turnover does not yet exceed the limit of DKK 50,000 per year.
In most cases, it makes it easier for other businesses to work with you and allows you to deduct some of your business expenses or purchases for tax purposes. Voluntary VAT registration can also be an advantage if you have customers subject to VAT.
Of course, some people have a personal opinion that it seems more professional to have a CVR number, and that way you're also prepared if your turnover ends up exceeding DKK 50,000 per year.
invoice without own CVR no.
Use Factofly to get paid without a VAT number and say goodbye to administration.
Freelancer as an employee
If you choose to work as a freelance employee, you won't need a CVR number because you don't have your own business, as you're affiliated with a permanent employer who gives you tasks and pays you a salary. The company you work for bears full financial responsibility, for example if you are prevented from completing the assignment.
However, as a freelancer, you don't usually have quite the same rights as regular employees, but this can vary from contract to contract.
It's often the case that journalists or others who perform tasks that are exempt from VAT choose to work as a freelance employee.
Freelancing as self-employed
As an independent freelancer, you are in charge of finding your own assignments and clients and therefore have more freedom in terms of which assignments you want to take on.
Here you have full financial responsibility, but also greater freedom. In most cases, self-employed freelancers run their own business with a VAT number, but whether this is necessary depends on your situation and preference. As a self-employed freelancer, it is possible for you to send invoices without a CVR number, so it shouldn't be invoicing options that determine whether you set up a CVR number.
This is where the DKK 50,000 revenue per year rule applies, unless you have a third party or platform to handle invoicing through their VAT number.
Get paid without your own company
Factofly lets you invoice without your own company and handles all administration so you can focus on your business.
So when do you need to register a CVR?
To summarize, it's necessary to register as a freelancer when you're a freelancer:
- Your turnover exceeds 50,000 DKK per year
- You don't work as a freelance employee, but as a self-employed freelancer or a mix of the two
- You don't have a management solution like Factofly that invoicing goes through
Generally speaking, having a CVR number and being VAT registered can make some things easier when it comes to managing your business. It is always possible to voluntarily register even if you do not meet the above conditions.
Why do you need a CVR number as an independent freelancer?
Now you know how much you can earn without having a CVR number, and that as a general rule, you must be CVR registered when your turnover exceeds DKK 50,000 per year.
But why is it even necessary? And what purpose does a CVR number serve?
That's why you need a CVR number as an independent freelancer:
As soon as you exceed a turnover of DKK 50,000 per year as a self-employed person, the turnover is usually subject to VAT - unless the services or goods you sell are exempt from VAT. There may also be other advantages to having a CVR number, such as savings in your own company.
However, you also have the option of using a service like Factofly, which allows you to invoice and take payment without your own CVR number. Even if your turnover exceeds DKK 50,000.
More than 1,600 freelancers get paid with Factofly
There's a smarter solution than setting up and running your own company. Factofly is the preferred solution for freelancers who have better things to do than VAT accounting.
What does VAT liable mean?
Having a turnover subject to VAT means that you have to pay and report VAT on what you sell. And in order to be registered for VAT and thus be able to report VAT, freelancers need to have a CVR number.
It is also possible to register without being registered for VAT as a Personally-owned Small Business (PMV), for example, if you are not obliged to pay VAT but would still like to have a CVR number. When you create a CVR number, you choose in the process whether you want to register for VAT.
How does a CVR number work for freelancers?
A CVR number for freelancers works just like a CVR number for any other business.
You can compare the CVR number to a CPR number, where the CPR number is of course associated with you as a person with various information such as date of birth, name etc. and on the other hand, a CVR number is associated with a company.
The CVR number is used to identify your company and can be used to retrieve practical information about your company from the CVR register, such as address, contact details and your name.
Avoid the hassle of your own CVR number.
We've made freelancing easy: Use Factofly to get paid as a private individual without setting up or running your own company.
A CVR number is mainly used for:
- To register practical information about the business
- Being able to register for VAT in order to report VAT
- Getting registered for other taxes (such as A-Tax or payroll tax)
- Being able to deduct some of your business expenses or tax-deductible purchases
- Getting a business NemKonto linked to your company
- Getting access to the Digital Post for the company
How do you get a CVR number as a freelancer?
If you as a freelancer need a CVR number, you can register your business fairly quickly at Virk.dk. It can all be done online and registered with your personal NemID or MitID.
When you register as a business, you are automatically assigned a CVR number and can also choose whether you want to register for VAT.
When you register for a CVR number, you also need to choose which type of business you want to register as. The vast majority of self-employed freelancers with a turnover of more than DKK 50,000 per year choose to register as a sole proprietorship.
A sole proprietorship is one of the simple and straightforward types of business that doesn't require a capital contribution, and with it you can usually have your CVR number within a few days.
Administration, CVR no. and VAT reporting
The administration and the many rules and requirements can seem overwhelming at first.
However, we hope that you are now better informed and have clarified whether you as a freelancer in your situation need a CVR number or whether it would be practical for you to have one anyway.
At the end of the day, it's all about starting from one end and taking it step by step to get an overview of your new business.
Send invoices as a private individual
Use Factofly to get paid as a private individual without having to set up or run your own company.
Do you need a CVR number as a freelancer?
If you're just starting out or considering becoming a freelancer, you might be asking yourself, "Do you need a company registration number as a freelancer?"
A freelancer is essentially a self-employed worker, but there are different ways of being a freelancer that affect whether you need a business registration number. Maybe you've been invoicing as a private individual and earning less than 50,000 DKK per year, but now your business has grown.
You can either choose to work as a freelance employee or as a self-employed freelancer. In both situations, you don't need to create a CVR number. As a self-employed freelancer, you can choose to handle everything yourself with a CVR number, or you can "borrow" a third-party CVR number, typically through a platform like Factofly, and let them handle the invoicing and all the administration.
When do you need a CVR number as a freelancer?
You must have a CVR number if your company has an annual turnover of more than DKK 50,000. If your turnover is less than DKK 50,000 per year, registering your business with a CVR number is optional. Although it's not mandatory for businesses with lower turnover, it can still be beneficial to register.
However, it is possible, and in some cases may be an advantage, to create a CVR number and register for VAT even if your turnover does not yet exceed the limit of DKK 50,000 per year.
In most cases, it makes it easier for other businesses to work with you and allows you to deduct some of your business expenses or purchases for tax purposes. Voluntary VAT registration can also be an advantage if you have customers subject to VAT.
Of course, some people have a personal opinion that it seems more professional to have a CVR number, and that way you're also prepared if your turnover ends up exceeding DKK 50,000 per year.
invoice without own CVR no.
Use Factofly to get paid without a VAT number and say goodbye to administration.
Freelancer as an employee
If you choose to work as a freelance employee, you won't need a CVR number because you don't have your own business, as you're affiliated with a permanent employer who gives you tasks and pays you a salary. The company you work for bears full financial responsibility, for example if you are prevented from completing the assignment.
However, as a freelancer, you don't usually have quite the same rights as regular employees, but this can vary from contract to contract.
It's often the case that journalists or others who perform tasks that are exempt from VAT choose to work as a freelance employee.
Freelancing as self-employed
As an independent freelancer, you are in charge of finding your own assignments and clients and therefore have more freedom in terms of which assignments you want to take on.
Here you have full financial responsibility, but also greater freedom. In most cases, self-employed freelancers run their own business with a VAT number, but whether this is necessary depends on your situation and preference. As a self-employed freelancer, it is possible for you to send invoices without a CVR number, so it shouldn't be invoicing options that determine whether you set up a CVR number.
This is where the DKK 50,000 revenue per year rule applies, unless you have a third party or platform to handle invoicing through their VAT number.
Get paid without your own company
Factofly lets you invoice without your own company and handles all administration so you can focus on your business.
So when do you need to register a CVR?
To summarize, it's necessary to register as a freelancer when you're a freelancer:
- Your turnover exceeds 50,000 DKK per year
- You don't work as a freelance employee, but as a self-employed freelancer or a mix of the two
- You don't have a management solution like Factofly that invoicing goes through
Generally speaking, having a CVR number and being VAT registered can make some things easier when it comes to managing your business. It is always possible to voluntarily register even if you do not meet the above conditions.
Why do you need a CVR number as an independent freelancer?
Now you know how much you can earn without having a CVR number, and that as a general rule, you must be CVR registered when your turnover exceeds DKK 50,000 per year.
But why is it even necessary? And what purpose does a CVR number serve?
That's why you need a CVR number as an independent freelancer:
As soon as you exceed a turnover of DKK 50,000 per year as a self-employed person, the turnover is usually subject to VAT - unless the services or goods you sell are exempt from VAT. There may also be other advantages to having a CVR number, such as savings in your own company.
However, you also have the option of using a service like Factofly, which allows you to invoice and take payment without your own CVR number. Even if your turnover exceeds DKK 50,000.
More than 1,600 freelancers get paid with Factofly
There's a smarter solution than setting up and running your own company. Factofly is the preferred solution for freelancers who have better things to do than VAT accounting.
What does VAT liable mean?
Having a turnover subject to VAT means that you have to pay and report VAT on what you sell. And in order to be registered for VAT and thus be able to report VAT, freelancers need to have a CVR number.
It is also possible to register without being registered for VAT as a Personally-owned Small Business (PMV), for example, if you are not obliged to pay VAT but would still like to have a CVR number. When you create a CVR number, you choose in the process whether you want to register for VAT.
How does a CVR number work for freelancers?
A CVR number for freelancers works just like a CVR number for any other business.
You can compare the CVR number to a CPR number, where the CPR number is of course associated with you as a person with various information such as date of birth, name etc. and on the other hand, a CVR number is associated with a company.
The CVR number is used to identify your company and can be used to retrieve practical information about your company from the CVR register, such as address, contact details and your name.
Avoid the hassle of your own CVR number.
We've made freelancing easy: Use Factofly to get paid as a private individual without setting up or running your own company.
A CVR number is mainly used for:
- To register practical information about the business
- Being able to register for VAT in order to report VAT
- Getting registered for other taxes (such as A-Tax or payroll tax)
- Being able to deduct some of your business expenses or tax-deductible purchases
- Getting a business NemKonto linked to your company
- Getting access to the Digital Post for the company
How do you get a CVR number as a freelancer?
If you as a freelancer need a CVR number, you can register your business fairly quickly at Virk.dk. It can all be done online and registered with your personal NemID or MitID.
When you register as a business, you are automatically assigned a CVR number and can also choose whether you want to register for VAT.
When you register for a CVR number, you also need to choose which type of business you want to register as. The vast majority of self-employed freelancers with a turnover of more than DKK 50,000 per year choose to register as a sole proprietorship.
A sole proprietorship is one of the simple and straightforward types of business that doesn't require a capital contribution, and with it you can usually have your CVR number within a few days.
Administration, CVR no. and VAT reporting
The administration and the many rules and requirements can seem overwhelming at first.
However, we hope that you are now better informed and have clarified whether you as a freelancer in your situation need a CVR number or whether it would be practical for you to have one anyway.
At the end of the day, it's all about starting from one end and taking it step by step to get an overview of your new business.
Send invoices as a private individual
Use Factofly to get paid as a private individual without having to set up or run your own company.
