Which form to choose — enkeltmandsvirksomhed or ApS?

An enkeltmandsvirksomhed suits a small scale and a single owner — it is simple and cheap, but comes with full personal liability. An ApS is chosen with growth, partners or greater risk, as it limits liability but requires DKK 20,000 of capital and full accounting. It is worth discussing the choice with an adviser.

How much capital does an ApS need?

At least DKK 20,000 of share capital. This is not a fee — the money stays in the company and can finance its operations. For the larger A/S form the threshold is much higher (around DKK 400,000). The former IVS form with token capital was abolished in 2019.

When must a business register for VAT (moms)?

As a rule after exceeding the taxable turnover threshold — in Denmark that is DKK 50,000 over a 12-month period. Registration is handled by Skattestyrelsen. Below the threshold a business usually does not charge VAT. Thresholds are sometimes changed, so it is worth confirming the current figure.

Do you have to live in Denmark to start a company?

Not always, but registration needs Danish identifiers and access to digital services (e.g. logging in to Virk), and some roles may carry residency requirements. The rules are sometimes updated — confirm the current requirements for your situation before setting up.

How to start a company in Denmark — step by step

Published: 2026-07-24

In Denmark the most common choices are the sole proprietorship (enkeltmandsvirksomhed) and the private limited company (anpartsselskab, ApS). The company is registered by Erhvervsstyrelsen, usually through the Virk portal (virk.dk), which assigns a CVR number. Tax matters (VAT, moms) are handled by Skattestyrelsen. The choice of form affects liability, capital, taxes and accounting. Below, step by step: the forms, where and how to register, what it costs and what obligations it creates. This is a guide to starting a company — to check an existing Danish counterparty, see our guide on verifying a company in Denmark.

Which business forms can you choose in Denmark?

Two are most common. The enkeltmandsvirksomhed (sole proprietorship) is simple and cheap, but the owner is liable for obligations with all of their personal assets. The anpartsselskab (ApS) is a private limited company — a separate entity in which liability is limited to the capital contributed, but you must put in capital and keep full accounts.

For larger ventures there is also the aktieselskab (A/S) with higher capital, and for partners the interessentskab (I/S). Note that the former IVS form (with token capital) was abolished in 2019. The choice depends on scale, the number of partners and the risk you accept: for a small business an enkeltmandsvirksomhed is usually considered; with growth, an ApS.

Where and how to register a company in Denmark?

The company is registered by Erhvervsstyrelsen (the Danish Business Authority), in practice through the Virk portal (virk.dk). After registration the company receives a CVR number (8 digits), which is its main identifier. The VAT number (moms) is the CVR number with a DK prefix.

Tax matters are handled by Skattestyrelsen: that is where you arrange VAT (moms) registration and employer obligations if the business hires. In practice registering an ApS involves contributing capital and a fee, while an enkeltmandsvirksomhed is simpler. Rules and fees are sometimes updated, so it is worth confirming the details before starting.

What does it cost and how much capital is needed?

An anpartsselskab (ApS) requires share capital of at least DKK 20,000. This is not a fee: the money stays in the company. For the larger aktieselskab (A/S) form the threshold is much higher (around DKK 400,000). There is also a registration fee and ongoing costs — full accounting and, for larger companies, an audit. An enkeltmandsvirksomhed requires no capital and is the cheapest to start.

How much financial data is later disclosed depends in Denmark on the company's size class (regnskabsklasse) — the smallest companies have simplifications. The table below compares an enkeltmandsvirksomhed and an ApS. It is worth confirming current thresholds and fees, as they are sometimes changed.

Enkeltmandsvirksomhed vs anpartsselskab (ApS) — comparison
Aspect	Enkeltmandsvirksomhed	Anpartsselskab (ApS)
Capital	none	min. DKK 20,000
Liability	personal, with all assets	limited to company assets
Accounting	simpler	full + annual report (årsrapport)
For whom	small scale, single owner	growth, partners, higher risk

Frequently asked questions

Which form to choose — enkeltmandsvirksomhed or ApS?: An enkeltmandsvirksomhed suits a small scale and a single owner — it is simple and cheap, but comes with full personal liability. An ApS is chosen with growth, partners or greater risk, as it limits liability but requires DKK 20,000 of capital and full accounting. It is worth discussing the choice with an adviser.
How much capital does an ApS need?: At least DKK 20,000 of share capital. This is not a fee — the money stays in the company and can finance its operations. For the larger A/S form the threshold is much higher (around DKK 400,000). The former IVS form with token capital was abolished in 2019.
Where do you register a company in Denmark?: The company is registered by Erhvervsstyrelsen, in practice through the Virk portal (virk.dk). After registration the company receives a CVR number (8 digits), and the VAT number (moms) is the CVR with a DK prefix. VAT registration and taxes are handled by Skattestyrelsen.
When must a business register for VAT (moms)?: As a rule after exceeding the taxable turnover threshold — in Denmark that is DKK 50,000 over a 12-month period. Registration is handled by Skattestyrelsen. Below the threshold a business usually does not charge VAT. Thresholds are sometimes changed, so it is worth confirming the current figure.
Do you have to live in Denmark to start a company?: Not always, but registration needs Danish identifiers and access to digital services (e.g. logging in to Virk), and some roles may carry residency requirements. The rules are sometimes updated — confirm the current requirements for your situation before setting up.

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This guide is for information purposes only and does not constitute legal or tax advice. Laws and registry rules may change — the information held in the relevant country's official registers is always decisive.