fredag den 3. marts 2023

How to establish a sole proprietorship, og "enkeltmandsvirksomhed" in Denmark


In order to form - and run - a personal company in Denmark, you need to be living in Denmark and be fully tax responsible to Denmark. Otherwise it has to be an "other foreign company"

It is important to understand, that in a personal company you are personally liable for losses, as opposed to running an limited company like anApS company, but there are advantages with both forms.

Forming a sole proprietorship / Personal company or "enkeltmandsvirksomhed" in Denmark involves the following steps:

  1. Choose a business name: You should choose a unique business name that is not already registered in Denmark. You can check the availability of a business name by searching on the Danish Business Authority's website. Do not let the name stop you if you do not think you have the absolut right name. In fact the service you provide and customer feedback, will mean much more to your business, than the name. Novo, Ikea, Maersk, Jyske, Rema1000 - does not fail, and that is not a name you would have thought likely to provide succes.

  2. Register your business: You will need to register your business with the Danish Business Authority. You can do this online using the Virk website. You will need to provide information such as your business name, address, type of business, and the date you plan to start the business. Here is a link to startup registration Doing that, you will obtain a CVR number: Once you have registered your business, you will receive a Central Business Register (CVR) number. This number is used to identify your business in Denmark.

  3. During registration, apply for any necessary licenses and permits such as VAT, import and export registration, empolyers registration and so forth. This is done simply by ticking off checkboxes. If your annual turnover is expected to exceed DKK 50,000, you will need to register for Value Added Tax (VAT) with SKAT, the Danish tax agency. You will then have to report your VAT quarterly in the begining. You will need to set up a separate bank account for your business transactions. Although TAX would allow using a personal account, the many other laws banks have to apply to, like whitewash control law, KYC law ++ - will in general mean, you need to pay for a separate business account. That amount you pay yearly/monthly in fee for the account, is not deductabel in the business tax result

  4. File tax returns and pay taxes by the end of each business year: As a sole proprietor, you will be responsible for filing your own tax returns and paying taxes on your business income. The result for the year goes into the årsopgørelse/tax declaration into field 111/112

It is recommended that you seek advice from a professional accountant or lawyer when starting a business in Denmark to ensure that you comply with all legal requirements and regulations.

I am writing this based on my best knowledge, and I do not accept any responsibilty for mistakes og misintrepetations in my text, so if in doubt, consult an auditor.

I you can read Danish, you may take advantage reading my full blog and my e.books listed below:


HUSK AT CHECKE INDHOLDSFORTEGNELSEN I MIN BLOG SOM DETTE LINK 


SE MEGET GERNE MINE 6 E-BØGER OG PAPERBACKS SOM ER GULD VÆRD FOR MANGE.
DER ER LINK TIL INDHOLDSFORTEGNELSE OG KØB SIDEN HOS SAXO


MANGE AF DEM KAN SPARE DIG PENGE I DET DAGLIGE I FIRMAET:


”START-UP" Komplet iværksætter ”bibel” – Lækker inspirerende hardcover bog med alle former for virksomhed, IVS + ApS og masser af inspirerende materiale at kaste sig over, og siden som uundværligt opslagsværk

"Grundbog til dig der vil være selvstændig". E-pub bog med ALT det grundliggende skrevet let fatteligt for dig der vil være selvstændig - for alle virksomhedsformer - stiftelse og hele driften

”Introduktion Til REGNSKAB” – en begynderbog om regnskab og bogføring

”Fradrag” Generelt om regler og praksis i fradrag + alfabetisk ordnede fradrag


"ApS" Alt om anpartsselskaber

”Personlig virksomhed” Om at stifte og drive enkeltmandsvirksomhed, PMV eller I/S

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