Company Formation & Entity Setup in Denmark

ApS and A/S incorporation, Danish Business Authority (Erhvervsstyrelsen) registration, and post-formation compliance setup.

Denmark Reviewed September 2026

Currency

DKK (Danish krone)

Legal forms

ApS · A/S

Minimum share capital

ApS: DKK 20,000 · A/S: DKK 400,000 (DKK 100,000 may be paid up initially in some cases)

Registration body

Danish Business Authority (Erhvervsstyrelsen)

Formation timeline

As little as a few business days for a standard ApS

Corporate tax rate

22% flat rate (26% for financial sector entities)

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How company formation works in Denmark

Denmark applies a flat 22% corporate tax rate uniformly across most company sizes and sectors, with no reduced rate for small businesses and no municipal or regional surcharge layered on top — one of the more straightforward corporate tax structures in Europe. The ApS, Denmark's standard private limited company, requires DKK 20,000 in share capital and can be formed with 100% foreign ownership and no requirement for directors or shareholders to be Danish tax residents.

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Matched to your business objective

ApS

Liability

Limited to company assets

Min. capital

ApS: DKK 20,000 · A/S: DKK 400,000 (DKK 100,000 may be paid up initially in some cases)

The standard vehicle for an operating subsidiary of a foreign company — the default choice for most market-entry engagements in Denmark.

A/S

Liability

Limited to company assets

Min. capital

ApS: DKK 20,000 · A/S: DKK 400,000 (DKK 100,000 may be paid up initially in some cases)

Used for larger operations, more formal governance needs, or entities seeking to raise capital publicly.

Branch

Liability

None separate — the foreign parent company bears full liability

Min. capital

None — no separate capital requirement

Useful for testing the Denmark market before committing to a subsidiary, or for keeping a single legal entity across borders. Creates a taxable presence — profits are generally taxed in Denmark.

Representative office

Liability

N/A — not a registered legal entity in most cases

Min. capital

None

For market research and liaison activity only — cannot sign contracts, invoice, or trade locally in most jurisdictions.

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What it takes to register, and how long

Formation runs through the Danish Business Authority (Erhvervsstyrelsen), typically taking As little as a few business days for a standard ApS.

Fixed-amount employer social contributions — (ATP, accident insurance) rather than percentage-based, changing total cost modelling at higher salary levels
New "top-top tax" — — a 5% additional bracket on personal income above DKK 2,592,700, effective January 2026, raising the maximum marginal rate to approximately 60.5%
Reduced researcher/key employee tax scheme threshold — — minimum qualifying monthly salary lowered to DKK 65,400 from January 2026, easing access to the 27% flat-rate regime
Mandatory digital bookkeeping — for companies exceeding DKK 300,000 turnover, phased in from financial years starting after 1 January 2026

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Frequently asked questions

Why are Danish employer social contributions a fixed amount rather than a percentage?

Denmark's employer-side social contributions are primarily the ATP pension contribution and mandatory workplace accident insurance, both calculated as fixed annual amounts per full-time employee rather than as a percentage of salary — totalling approximately DKK 16,000 per year. This means employer cost does not scale with salary the way it does in percentage-based systems, making Denmark comparatively favourable for higher-salary roles.

What is the researcher and key employee tax scheme?

Qualifying foreign researchers and highly paid key employees can opt for a flat 27% tax rate on cash remuneration (effectively 32.84% combined with the labour market contribution) for up to seven years, instead of Denmark's standard progressive income tax. As of January 2026, the minimum qualifying monthly salary was reduced to DKK 65,400, down from DKK 78,000, making the scheme accessible to a wider range of foreign specialists.

What is the new "top-top tax" introduced in 2026?

Effective 1 January 2026, Denmark introduced an additional 5% tax bracket on personal income exceeding DKK 2,592,700 annually (after labour market contribution), bringing the maximum marginal rate for the highest earners to approximately 60.5% when combined with state and municipal tax.

What is the difference between an ApS and an A/S?

An ApS requires DKK 20,000 in share capital and suits the vast majority of foreign company formations, with no requirement for Danish-resident directors or shareholders. An A/S requires DKK 400,000 and a more formal governance structure, typically used for larger enterprises planning to raise capital publicly.

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The fixed, per-employee nature of Danish employer social contributions is frequently misunderstood by companies importing payroll cost assumptions from percentage-based systems elsewhere in Europe. At higher salary levels, Denmark's employer cost can be materially lower in relative terms than markets with uncapped percentage contributions — a structural advantage that is easy to miss when budgeting from a generic European cost template.

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