Denmark company structures: at a glance

Options for registering companies in Denmark

As a highly digitised and business-friendly member of the EU and EEA, Denmark is a popular choice for foreign investors. Its legal framework offers structures that are well-suited for both local operations and international business. The standard corporate income tax (CIT) rate is 22%.

Denmark offers international companies the following legal structures for establishing a local presence:

Private limited company (Anpartsselskab - ApS)

• The Danish ApS is the most common limited liability entity for foreign investors and SMEs due to its flexibility.
• It affords shareholders limited liability up to the amount of their capital contribution.
• The minimum share capital required is DKK 40,000 (approximately €5,360) and must be fully paid up upon registration.
• It can be established with a minimum of one shareholder (natural person or legal entity), allowing for 100% foreign ownership.
• Registration is fast and generally completed online through the Danish Business Authority (Erhvervsstyrelsen) portal.

General partnership (Interessentskab - I/S)

• The Danish I/S is a common structure for businesses with two or more owners (partners), who can be individuals or legal entities.
• The key feature is unlimited joint and several liability: all partners are personally liable for all debts and obligations of the partnership with their entire personal assets.
• There is no minimum capital requirement for formation, making it easy to establish.
• Governance is determined by a partnership agreement between the partners; there are no legal requirements for a formal board or management.
• Taxation: The I/S is a tax-transparent entity; the partnership itself does not pay corporate income tax. Instead, the profits are attributed directly to the partners and taxed at their respective income tax rate (personal or corporate).

Branch office of a foreign company (Filial)

• The branch is a Permanent Establishment (PE) and an extension of the foreign parent company, lacking separate legal personality.
• It is permitted to conduct commercial activities and generate revenue in Denmark.
• The foreign parent company retains full and unlimited liability for all the branch's operations and debts in Denmark.
• There is no minimum share capital requirement.
• The branch must appoint at least one branch manager who must reside in the EEA.
• The branch is subject to Danish corporate income tax (22%) on income generated in Denmark.
• A copy of the parent company’s audited financial statements must be filed annually with the Danish Business Authority.

To help you choose the right structure, we have created an ‘at a glance’ summary table for the common company types that outlines key differences in formation processes, requirements and timelines. It serves as a valuable resource for foreign companies looking to set up or expand a business in Denmark.

Comparison of the common types of companies in Denmark

Information verified against Danish Business Authority (Erhvervsstyrelsen)

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