FAQ

Getting Started

What company structure should I choose?

TL;DR: ApS for almost all startups.

ApS (Anpartsselskab) is the standard limited liability company in Denmark. As of January 1, 2025, the minimum capital requirement was reduced to 20,000 DKK (from 40,000 DKK), making it more accessible for startups. This provides credibility with banks, investors, and partners.

Note: The IVS (Iværksætterselskab) was abolished in April 2019 and is no longer available.

See Legal Setup for details on other structures.

How long does it take to register a company?

1-4 weeks for EU founders, 3-6 months for non-EU founders.

Open bank account: 1-3 weeks
Prepare documents: 1-3 days
Virk.dk registration: 1-2 business days
Non-EU founders: Add 2-4 months for visa processing

Can I use my home address as company address?

Yes. You can register your home address as the company address. Many founders do this initially. You can change it later when you get office space.

Do I need a lawyer to register my company?

No, but recommended for complex situations.

Simple ApS with standard structure can be done via Virk.dk templates. Hire a lawyer if you have:

Multiple founders with complex ownership
Foreign founders
Unusual share structures
IP or licensing issues

Budget 5,000-15,000 DKK for legal assistance.

What's the minimum to get started?

~20,670 DKK for ApS (~€2,800).

ApS capital: 20,000 DKK (reduced from 40,000 DKK in 2025)
Registration fee: 670 DKK
Total minimum: 20,670 DKK

Add ongoing costs: accounting (2-8k DKK/month), domain/hosting (100-500 DKK/month).

Legal & Tax

What's the corporate tax rate?

22% on profits. Paid in two installments (March and November). This is relatively low compared to many European countries.

Source: SKAT - Corporate Tax

Do I need to register for VAT immediately?

Depends on your business.

B2C SaaS to Danish customers: Yes, from first kroner
B2B SaaS/services: Only if revenue > 50,000 DKK/year
Physical goods: Only if revenue > 50,000 DKK/year

You can voluntarily register below the threshold to deduct input VAT.

See Operations - VAT for details.

How often do I need to file taxes?

Filing	Frequency
VAT returns	Quarterly (or monthly if > 50M DKK/year)
A-skat (payroll tax)	Monthly (if you have employees)
Corporate tax return	Annual (6 months after fiscal year end)
Annual report	Annual (5 months after fiscal year end)

Do I need an accountant?

Highly recommended, especially if you have employees.

You can DIY with software (Dinero, Billy) if:

No employees yet
Simple revenue structure
Comfortable with Danish tax system

Hire an accountant when:

You hire your first employee (payroll complexity)
You're raising capital (clean books for due diligence)
Revenue > 1M DKK
Foreign founder unfamiliar with Danish rules

What happens if I miss a filing deadline?

Fines and interest charges.

Late annual report: 1,500+ DKK fine, potential forced dissolution
Late VAT: 800+ DKK per late filing
Late tax return: Interest + penalties

Set calendar reminders or hire an accountant to manage deadlines.

Funding & Growth

Should I apply for grants or raise VC money?

Grants first if you qualify, VC when you have traction.

Grants (Innovationsfonden, Vækstfonden):

Non-dilutive funding
Good for R&D, innovation projects
3-6 month application process
Often require co-financing

VC funding:

Faster deployment (if you have traction)
Network and expertise from investors
Dilutes ownership (typically 10-25% per round)
Requires strong growth trajectory

Many startups do both: grants for R&D, VC for scaling.

How much should I raise in my first round?

Typical seed in Denmark: €500k-1.5M (3.5-11M DKK).

Raise enough for:

18-24 months runway
Reach next meaningful milestone (product-market fit, recurring revenue)
Small buffer for unexpected costs

Pre-seed/angel rounds are typically 50-500k DKK.

What equity should I give early employees?

Use stock options, typically 0.1-1% for early hires.

Role	Pre-seed/Seed	Series A+
CTO / Co-founder	10-25%	1-5%
VP level	1-3%	0.3-1%
Senior Engineer	0.3-1%	0.1-0.3%
Engineer	0.1-0.5%	0.05-0.2%

Use 4-year vesting with 1-year cliff. See Hiring - Equity.

When should I hire my first employee?

When you have revenue or funding, and a clear need.

Before hiring full-time, consider:

Can you outsource/use contractors first?
Do you have 12-18 months of salary budget?
Is this role critical to growth?

First hires are usually:

Technical co-founder or lead engineer (if non-technical founder)
Sales/BD (if technical founder with product built)

International Founders

Can I start a Danish company without living in Denmark?

Yes, but it's more complex.

Requirements:

Danish representative (can be professional service provider)
Danish bank account (may require in-person visit)
Use international lawyer or formation service

EU founders can do this easily. Non-EU founders should consider applying for Start-Up Denmark visa if planning to be active in the company.

Do I need a CPR number to start a company?

No, but it makes everything easier.

You can register a company with passport details, but you'll need CPR for:

Opening most Danish bank accounts
Signing up for e-Boks (official digital mail)
Payroll processing
TastSelv (online tax portal)

Apply for CPR if you're living in Denmark (EU: register at Borgerservice; non-EU: comes with residence permit).

How can non-EU founders move to Denmark?

Main options: Start-Up Denmark, Pay Limit Scheme, or Establishment Card.

Start-Up Denmark: Entrepreneurship visa, requires expert panel approval, up to 2 years
Establishment Card: For entrepreneurs with strong business plan, own funding
Get hired first: Join a Danish company, then start your startup on the side

Processing: 2-4 months. See Legal Setup - Foreign Founders.

How difficult is it to hire international talent?

EU: Easy. Non-EU: Moderate with right visa scheme.

EU/EEA: No permit needed, can start immediately
Non-EU (Pay Limit): 1-2 months if salary ≥ 552k DKK/year (2026, adjusted annually)
Non-EU (Supplementary): 1-2 months if salary ≥ 446k DKK/year (2026, adjusted annually)
Non-EU (Fast-track): 2-4 weeks if your company is certified

Get fast-track certification if you plan to hire multiple non-EU employees. See Hiring - Foreign Hires.

Is English enough, or do I need to learn Danish?

English is sufficient for business, but Danish helps for life.

You can operate in English:

Most business contexts (tech scene is very English-friendly)
Official websites have English versions
Professional services (lawyers, accountants) work in English

Danish helps with:

Navigating government bureaucracy
Hiring non-English-speaking talent
Building deeper local network
Understanding all tax/legal documents

Free Danish classes available through municipalities for residents.

What's the Danish startup culture like?

Collaborative, egalitarian, work-life balance focused.

Flat hierarchies: Less formal than US/UK, first-name basis with everyone
Consensus-driven: Decisions involve input from team
Work-life balance: Expect employees to leave at 4-5pm, take full 5 weeks vacation
Direct communication: Honest feedback without sugar-coating
Collaborative: Founders help each other, low ego

Adjust expectations if coming from hustle-heavy startup cultures like SF or NYC.