If you want to or you must start a business in Denmark, you will need to follow the Danish rules. If you are already established in another EU or EEA country, Services contact point can guide you free of charge.
If you are established as a self-employed person or a business in another EU or EEA country, you can start a business in Denmark. In some situations you may be required to start a company in Denmark, e.g. if you or your business is active in Denmark for more than 6 or 12 continuous months, or if you take up a residence in Denmark. If you wish to establish a business in Denmark - without already being established in another EU or EEA country - please consult businessindenmark.virk.dk.
Danish VAT and TAX
If your company has employees, it is your responsibility to withhold Danish tax and labour market contribution from the wages that you pay to your employees for the work they carry out in Denmark.
When do you have to register for VAT in Denmark?
You have to submit the application for VAT registration in Denmark at the latest 8 days before you start doing business in Denmark. If you do not submit the application in time or not at all, or the information that you have provided is not correct or insufficient, you may be sanctioned with a fine.
How to register your company?
If you have a Danish NemID and you want to register your company as Danish company you can do it online at Virk.
If you do not have a Danish NemId you can register a company and obtain a CVR-number by filling out a form “Registration of Non-Danish Company – Start-40.112”, which you will find here.The filled out form can be uploaded via Business in Denmark or sent to e-mail: email@example.com.
Along with the registration application you must send copy of your passport, if you wish to be registered as sole proprietor or a copy of the company’s registration certificate in your home country if you already have a registered company within the EU.
The registration certificate with th Danish CVR/SE-number will be sent to the noted postal address.
When you have registered your company for Danish VAT, you must declare VAT for each VAT period. Information about the VAT period is given in connection with registration. You must declare VAT via the Danish Tax Agency's online tool TastSelv Erhverv. The tool is in English and Danish.
You will receive a password to TastSelv Erhverv, which you must activate within 30 days. You must use this password every time you log in to TastSelv Erhverv.
If you forget to declare your VAT, the Danish Tax Agency will automatically assess the VAT amount you have to pay. You will also be charged a fee and interest, if any.
Learn more on how to declare VAT on the Danish Tax Agency's website.
Payment of VAT
You must pay your VAT when you declare your VAT. Payment is made by international transfer. The Danish Tax Agency will inform you of the account, where you must pay your VAT.
If you have a bank account in Denmark (Nemkonto) you can pay your VAT via online banking or via Nets (PBS). If you want to pay VAT via Nets (PBS), you have to apply for it in the TastSelvErhverv.
Learn more about the payment of VAT by international transfer at www.sktst.dk.
When do you have to deregister your company?
If you stop doing business in Denmark you have to deregister your company within 8 days. This means that you close your company in terms of VAT. You can always request the same VAT number, if you decide to do business in Denmark again. You can also deregister your company for some of your duties, for instance your duties as an employer, without closing your company.
You can close your company or deregister for some of your company’s duties by filling out this form. The form is in English and Danish.
If you have registered your company as a Danish company, you can deregister your company directly at Virk. The tool is in English and Danish
Where can you get more information on VAT and other taxes?
For technical assistance regarding registration of your company, contact the Danish Business Authority at +45 7220 0030.
For legal assistance regarding VAT, excise and customs duty, contact the Danish Tax Agency at +45 7222 1818.
TAX when you do business in Denmark
When you as a foreign company do business in Denmark, you must, in some cases, pay tax in Denmark on any profit generated by your company. This applies if your company establishes:
A place where the company is managed
building, construction, assembly or installation work, or a supervision company in company in connection with these works over a certain period of time. The time period depends on the individual agreements between Denmark and your country. Normally the time period is between 6 to 12 months. If your business activities in Denmark exceeds this time period, your company will be regarded as established permanently in Denmark.
What to do when your company has employees?
When you establish a company in Denmark and you have employees that carry out work in Denmark, you must register as an employer. If you already have a Danish CVR/SE-number, you can register as an employer by using this form. The form is only in Danish. You have to send the form to the Danish Business Authority by e-mail: firstname.lastname@example.org
When you have registered as an employer in Denmark, you must deduct tax and labour market contribution of 8 % (in Danish called AM-bidrag) from each wage payment. You have to declare and pay the tax and AM-bidrag to the Danish Tax Agency on a monthly basis via the Danish Tax Agency´s online tool TastSelv Erhverv under the heading ‘eIndkomst’.
Where can I get more information on tax?
For legal assistance regarding tax, contact the Danish Tax Agency at +45 7222 1818
Ring op: +45 7222 1818 or at www.sktst.dk.
What are the main rules?
Most of the Danish rules are based on EU regulation. Therefore, the Danish rules are probably not far from the rules in your home country. However, the Danish regulation on working environment in the workplace is typically as strict as or stricter than rules in other EU countries.
It is your responsibility as an employer to ensure compliance with the working environment rules. It is therefore your responsibility to ensure that the employees can carry out their tasks without compromising health and safety in the workplace e.g. by giving them the necessary instructions.
Find more information on the Working Environment Authority's webpage for foreign service providers. The WEA has a priority focus on three key areas within working environment:
Preventing muscle and skeleton problems
Psychological working environment
The rules on working environment are administered by the WEA through inspections on the workplace and guidance to companies. In Denmark, you will find that the WEA does a large number of inspections. When the WEA visits you for an inspection, they will check whether your health and safety conditions are in compliance with the working environment regulation. The WEA will for instance look at the company’s own health and safety performance, ergonomics, use of technical machines and dangerous chemicals.
When your company is inspected, you will need to have at least the following documents ready:
Health and safety risk assessment (in Danish it is called an ‘APV’)
A written company policy on smoking in the work place incl. company cars
Relevant instructions for use of machines and dangerous substances
In certain sectors, special sector rules may apply. For instance, the construction sector has a special set of rules relating to working environment. You should contact the WEA or the relevant employers’ organisation for information on rules for your sector. The WEA also has a workplace assessment checklists for specific sectors such as building and construction an others. These checklists are in English and can be downloaded at the WEA’s Danish website (in Danish) or the Workplace Denmark website.
When will I be inspected by the WEA?
As a general rule, inspections will be carried out unannounced. The WEA has the legal right to enter the workplace of your company. The inspectors also have the right to speak with all employees.
What are the sanctions?
The WEA has the possibility by law to give you a sanction. There are generally three types of sanctions.
You can be told to make changes to the working environment at the workplace immediately or within a time limit
The WEA can close down your workplace if the working environment conditions are very dangerous
The WEA can give you a fine
If you do not comply the WEA will ask the police to initiate criminal charges against you.
Social security and workers compensation
If your employees are subject to Danish social security rules
When your employees are subject to Danish social security rules, you as a company must:
pay labour market supplementary pension (in Danish: ATP) for those employees that:
are aged 16 years and over,
work at least 9 hours a week, and
work as wage earners.
When you are obliged to pay ATP, you will also need to pay
for financial support scheme for trainees (in Danish: AUB)
contribution to maternity benefits
contribution to labour market fund for occupational diseases (in Danish: AES)
their sickness benefits in connection with their illness
and insure your employees against workplace injuries.
If you have questions on your responsibilities regarding social security contributions (comprising ATP, AES, AUB, financing contribution and contribution to maternity benefits), you should contact the ATP by phone +45 48 20 49 14.
What to do when you have to pay social security contributions in Denmark?
In order to pay ATP and AES and other contributions for your employees, you must register as an employer. You have to submit the registration at the latest 8 days after the first payment of wages.
If you do not have a Danish CVR/SE-number, you can register your company and as an employer by filling out the form “Registration of Non-Danish Company – Start - 40.112”
How to declare and pay ATP and AES contribution?
You have to declare the ATP contribution to the Danish Tax Agency via their online tool TastSelv Erhverv. After you have paid the ATP, you will automatically receive a bill from AES. The amount of AES contribution is calculated on the bases of your declaration to “eIndkomst”.
Insurance against occupational injury
As an employer, you are liable for the consequences of accidents and industrial diseases to which your employees are exposed. In order to insure your employees against work accidents, you must take an insurance policy at a private insurance company. If an accident occurs and your company does not have insurance, you will be obliged to pay a premium and contributions for the period that your workers should have had the insurance coverage. You will also be sanctioned with a fine, and you will be obliged to pay compensation to the injured employee.
Notification of accidents
You must report the injury to the insurance company and to Labour Market Insurance. At their site you can read on how to report the injury.
Where can I get more information on insurance for industrial injuries?
If you need guidance on AES contribution and insurance against workplace injuries, you can always contact Labour Market Insurance by phone +45 72 20 60 00 or by email email@example.com