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Do you have to have a CVR number as a freelancer?
If you are in the start-up phase or considering becoming a freelancer, you may be sitting with the question; "Do you have to have a CVR number as a freelancer?"
A freelancer is mainly an independent worker, but there are still different ways of being a freelancer, which have a bearing on whether you must have a CVR number. Maybe you have until now sent invoice as a private person and earned less than DKK 50,000 per year, but now your business has grown.
You can either choose to work as a freelance employee or as an independent freelancer. In both situations, you can avoid creating a CVR number. As an independent freelancer, you can choose to take care of everything yourself with a CVR number, or you can "borrow" a third party's CVR number, typically through a platform such as Factofly, and let them handle the invoicing and all the administrative work.
When must a freelancer have a CVR no.?
As a starting point, as an independent freelancer you must have a CVR no., if your turnover exceeds DKK 50,000 per year. Note that this is not based on your profit or profit, but is based on the total revenue per year.
However, it is possible, and in some cases can be an advantage, to still create a CVR no. and to register for VAT, even if the turnover does not yet exceed the limit of DKK 50,000 per year.
In most cases, this makes it easier for other companies to cooperate with you and gives you the opportunity to deduct some of your business expenses or purchases from tax. Being voluntarily registered for VAT can also be an advantage if you have customers liable for VAT.
In addition, of course, someone has a personal opinion that it seems more professional to have a CVR no., and that you are also prepared that way if your turnover should end up exceeding DKK 50,000 per year.
Invoices without own CVR no.
Use Factofly to get paid without your own CVR number, and say goodbye to administration.
Freelancer as an employee
If you choose to work as a freelance employee, you will not need a CVR no. Here you do not have your own company, as you are associated with a permanent employer who gives you tasks and pays you a salary. The company to which you are affiliated bears the full financial responsibility here, e.g. if you are prevented from being able to carry out the task.
However, as a freelance employee you do not normally have quite the same rights as regular employees, but this may vary from contract to contract.
You often see that it is journalists or others who carry out tasks that are exempt from VAT who choose to work as a freelance wage earner.
Freelancer as self-employed
As an independent freelancer, you are responsible for finding your tasks and clients yourself and therefore also have greater freedom regarding which tasks you would like to take on.
Here you yourself have full financial responsibility, but in return you also have greater freedom. In the vast majority of cases, self-employed freelancers run their own business with a CVR number, but whether this is necessary depends somewhat on your situation and preference. It is possible for you as an independent freelancer to send invoice without CVR no. So it should not be invoicing options that determine whether you create a CVR no.
It is here that the rule about the DKK 50,000 in turnover per year applies, unless you have a third party or a platform to be responsible for the invoicing through their CVR no.
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 should one CVR be registered?
To summarize, you can broadly say that it is necessary to have your CVR registered as freelancer when:
- Your turnover exceeds DKK 50,000 per year
- You do not work as a freelance employee, but as an independent freelancer or a mixture of the two
- You don't have an administration solution like Factofly, which the invoicing goes through
Generally speaking, having a CVR number and being VAT registered can make some things easier in relation to the administration of your business. It is always possible to register voluntarily, even if you do not meet the above conditions.
Why should an independent freelancer have a CVR no.?
Now you know how much you can earn without having a CVR no., and that as a general rule you must register a CVR when the turnover exceeds DKK 50,000 per year.
But why is it even necessary? And what purpose does a CVR number really serve?
That is why you must have a CVR number as an independent freelancer:
As soon as you, as a self-employed person, exceed a turnover of DKK 50,000 per year, the turnover is normally subject to VAT – unless the services or goods you sell are exempt of VAT. In addition, 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 such as Factofly, which lets you 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 is 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 taxable turnover means that you have to pay and report VAT for what you sell. And in order to be registered for VAT and thus be able to report VAT, as a freelancer it is necessary to have a CVR no.
It is also possible to charge CVR register without being registered for VAT as a Personally Owned Small Business (PMV), if you e.g. are not obliged to pay VAT, but you would still like to have a CVR no.. When you create a CVR no., you choose yourself in the process whether you want to be registered for VAT.
How does a CVR number work for freelancers?
A CVR number for freelancers works just like a CVR number for all other companies.
You can compare the CVR number somewhat with 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 therefore used to identify your company and can be used to obtain practical information about your company in the CVR register, such as address, contact details and your name.
Avoid the hassle of having your own CVR no.
We have made it easy to be a freelancer: Use Factofly to get paid as a private person, without having to set up or run your own company.
A CVR number is therefore mainly used for:
- To register practical information about the company
- To be able to register for VAT in order to report VAT
- To be registered for other taxes and charges (such as A-Tax or payroll tax)
- To be able to deduct some of the company's expenses or tax-deductible purchases
- To get a business NemKonto associated with the company
- To gain 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 company fairly quickly on Virk.dk. It can all be done online and registered with your personal NemID or MitID.
When you register as a company, you are automatically assigned a CVR number and can also choose whether you want to be registered for VAT.
When you register to get a CVR number, you must also choose the type of company you would like to be registered as. Here, the vast majority of independent freelancers, who have a turnover of more than DKK 50,000 per year, choose to register as a sole proprietorship.
A sole proprietorship is one of the plain and simple business types that do not require capital investment, and with it you can usually have your CVR no within a few days.
Administration, CVR no. and VAT reporting
The administration and the many rules and requirements can initially seem unmanageable to navigate.
However, we hope that you are now better prepared and have clarified whether you as a freelancer in your situation need a CVR no. Or whether, on the other hand, it will be practical for you to have anyway.
After all, it's just a matter of starting from scratch and taking it step by step so that you get an overview of your new business.
Send invoice as a private person
Use Factofly to get paid as a private individual without having to set up or run your own company.
Do you have to have a CVR number as a freelancer?
If you are in the start-up phase or considering becoming a freelancer, you may be sitting with the question; "Do you have to have a CVR number as a freelancer?"
A freelancer is mainly an independent worker, but there are still different ways of being a freelancer, which have a bearing on whether you must have a CVR number. Maybe you have until now sent invoice as a private person and earned less than DKK 50,000 per year, but now your business has grown.
You can either choose to work as a freelance employee or as an independent freelancer. In both situations, you can avoid creating a CVR number. As an independent freelancer, you can choose to take care of everything yourself with a CVR number, or you can "borrow" a third party's CVR number, typically through a platform such as Factofly, and let them handle the invoicing and all the administrative work.
When must a freelancer have a CVR no.?
As a starting point, as an independent freelancer you must have a CVR no., if your turnover exceeds DKK 50,000 per year. Note that this is not based on your profit or profit, but is based on the total revenue per year.
However, it is possible, and in some cases can be an advantage, to still create a CVR no. and to register for VAT, even if the turnover does not yet exceed the limit of DKK 50,000 per year.
In most cases, this makes it easier for other companies to cooperate with you and gives you the opportunity to deduct some of your business expenses or purchases from tax. Being voluntarily registered for VAT can also be an advantage if you have customers liable for VAT.
In addition, of course, someone has a personal opinion that it seems more professional to have a CVR no., and that you are also prepared that way if your turnover should end up exceeding DKK 50,000 per year.
Invoices without own CVR no.
Use Factofly to get paid without your own CVR number, and say goodbye to administration.
Freelancer as an employee
If you choose to work as a freelance employee, you will not need a CVR no. Here you do not have your own company, as you are associated with a permanent employer who gives you tasks and pays you a salary. The company to which you are affiliated bears the full financial responsibility here, e.g. if you are prevented from being able to carry out the task.
However, as a freelance employee you do not normally have quite the same rights as regular employees, but this may vary from contract to contract.
You often see that it is journalists or others who carry out tasks that are exempt from VAT who choose to work as a freelance wage earner.
Freelancer as self-employed
As an independent freelancer, you are responsible for finding your tasks and clients yourself and therefore also have greater freedom regarding which tasks you would like to take on.
Here you yourself have full financial responsibility, but in return you also have greater freedom. In the vast majority of cases, self-employed freelancers run their own business with a CVR number, but whether this is necessary depends somewhat on your situation and preference. It is possible for you as an independent freelancer to send invoice without CVR no. So it should not be invoicing options that determine whether you create a CVR no.
It is here that the rule about the DKK 50,000 in turnover per year applies, unless you have a third party or a platform to be responsible for the invoicing through their CVR no.
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 should one CVR be registered?
To summarize, you can broadly say that it is necessary to have your CVR registered as freelancer when:
- Your turnover exceeds DKK 50,000 per year
- You do not work as a freelance employee, but as an independent freelancer or a mixture of the two
- You don't have an administration solution like Factofly, which the invoicing goes through
Generally speaking, having a CVR number and being VAT registered can make some things easier in relation to the administration of your business. It is always possible to register voluntarily, even if you do not meet the above conditions.
Why should an independent freelancer have a CVR no.?
Now you know how much you can earn without having a CVR no., and that as a general rule you must register a CVR when the turnover exceeds DKK 50,000 per year.
But why is it even necessary? And what purpose does a CVR number really serve?
That is why you must have a CVR number as an independent freelancer:
As soon as you, as a self-employed person, exceed a turnover of DKK 50,000 per year, the turnover is normally subject to VAT – unless the services or goods you sell are exempt of VAT. In addition, 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 such as Factofly, which lets you 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 is 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 taxable turnover means that you have to pay and report VAT for what you sell. And in order to be registered for VAT and thus be able to report VAT, as a freelancer it is necessary to have a CVR no.
It is also possible to charge CVR register without being registered for VAT as a Personally Owned Small Business (PMV), if you e.g. are not obliged to pay VAT, but you would still like to have a CVR no.. When you create a CVR no., you choose yourself in the process whether you want to be registered for VAT.
How does a CVR number work for freelancers?
A CVR number for freelancers works just like a CVR number for all other companies.
You can compare the CVR number somewhat with 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 therefore used to identify your company and can be used to obtain practical information about your company in the CVR register, such as address, contact details and your name.
Avoid the hassle of having your own CVR no.
We have made it easy to be a freelancer: Use Factofly to get paid as a private person, without having to set up or run your own company.
A CVR number is therefore mainly used for:
- To register practical information about the company
- To be able to register for VAT in order to report VAT
- To be registered for other taxes and charges (such as A-Tax or payroll tax)
- To be able to deduct some of the company's expenses or tax-deductible purchases
- To get a business NemKonto associated with the company
- To gain 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 company fairly quickly on Virk.dk. It can all be done online and registered with your personal NemID or MitID.
When you register as a company, you are automatically assigned a CVR number and can also choose whether you want to be registered for VAT.
When you register to get a CVR number, you must also choose the type of company you would like to be registered as. Here, the vast majority of independent freelancers, who have a turnover of more than DKK 50,000 per year, choose to register as a sole proprietorship.
A sole proprietorship is one of the plain and simple business types that do not require capital investment, and with it you can usually have your CVR no within a few days.
Administration, CVR no. and VAT reporting
The administration and the many rules and requirements can initially seem unmanageable to navigate.
However, we hope that you are now better prepared and have clarified whether you as a freelancer in your situation need a CVR no. Or whether, on the other hand, it will be practical for you to have anyway.
After all, it's just a matter of starting from scratch and taking it step by step so that you get an overview of your new business.
Send invoice as a private person
Use Factofly to get paid as a private individual without having to set up or run your own company.
