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4 crucial actions to consider once creating a new APS business

1st STEP: APPLY FOR NEMID

In Denmark, a NemID serves as a digital signature that allows individuals to log in to government websites and online banking systems. It can be ordered at https://www.medarbejdersignatur.dk/. The website is only available in Danish.

2nd STEP: CREATE A MAILBOX ON "E-Boxes"

Government institutions deliver emails to a digital mailbox called "e-boxes," which can be accessed with a NemID. Danish Ltd may also choose to use this system. Similar to an internet mailbox, e-boxes can be accessed after logging in with a NemID. Once a NemID for a company is obtained, a company e-Box must be created.

3rd STEP: ASSING "NEMKONTO"

When creating a new company bank account in Denmark, it is important to ensure that it is designated as a NemKonto. A NemKonto is a regular company bank account that is given permission to operate as a NemKonto. Having a registered NemKonto allows companies to receive reimbursements from the government, such as tax or VAT refunds. To verify if a bank account has NemKonto status, individuals can visit https://www.nemkonto.dk/ or contact their bank for confirmation. If a company does not have a NemKonto, tax refunds cannot be counted on. It is also possible to use a foreign account as a NemKonto by submitting a special form.

4th STEP: TRANSFER THE COMPANY'S EQUITY FROM THE LAWYER

After setting up a new company bank account in Denmark, the lawyer who handled the registration process can transfer the minimum required initial capital of DKK 20,000 to the company account. This initial capital was deposited in the lawyer's client account at the time of registration. To transfer the equity, the company should ask their lawyer for assistance. If any difficulties arise during the registration process for a traditional bank account, using Revolut is recommended.

Register the ApS with the Danish Business Authority (Virk / CVR registration)

Before your new ApS can legally operate in Denmark, it must be registered with the Danish Business Authority (Erhvervsstyrelsen) and obtain a CVR number. The registration is done digitally via the Virk portal and is a prerequisite for opening a business bank account, registering for VAT and signing contracts in the company’s name.

To register an ApS, the company must have a minimum share capital of 40,000 DKK. This capital can be paid in cash, in assets (apport contribution), or as a combination, but the value must be documented and approved. In most cases, the capital is deposited into a temporary lawyer or bank account and later transferred to the company’s business account once the ApS is registered.

Key information you need for CVR registration

When you complete the online registration on Virk, you will be asked to provide a set of mandatory details about the company and its owners. Make sure you have the following information ready:

The registration is submitted using NemID/MitID for the founders or an authorised representative. If any of the owners or directors are non-residents, additional identification and documentation may be required, such as passport copies and proof of address.

Processing time, fees and CVR number

Once you have submitted all required information and documents via Virk, the Danish Business Authority reviews the application. In straightforward cases, an ApS is often registered within a few working days. If there are issues with the documentation (for example, unclear ownership structure or missing capital documentation), the authority may request clarifications, which can extend the processing time.

There is a mandatory registration fee for creating a new ApS, which is paid online during the application process. After approval, your company receives a unique CVR number, which serves as the official business identification number in Denmark. This number must be used on invoices, contracts, the company website and in all communication with public authorities.

After registration: public data and legal obligations

When the ApS is registered, basic company information becomes publicly available in the CVR register, including company name, address, management, ownership structure and financial year. Annual financial statements for most ApS companies must be submitted electronically to the Danish Business Authority every year and are also publicly accessible.

From the moment the ApS is registered, the company is subject to Danish company law and bookkeeping rules. You must keep proper accounting records, store documentation for at least five years and ensure that all changes in management, address, share capital or ownership are reported promptly to the Danish Business Authority via Virk. Failing to update this information can lead to fines or, in serious cases, compulsory dissolution of the company.

Registering the ApS correctly from the start creates a solid legal foundation for your business in Denmark and makes subsequent steps—such as VAT registration, payroll setup and digital bookkeeping—significantly easier and less risky.

Register for VAT (MOMS) and employer obligations (SKAT / eIndkomst)

Once your ApS is registered and has a CVR number, you must decide whether to register for VAT (MOMS) and, if relevant, as an employer with the Danish Tax Agency (SKAT). Correct and timely registration is crucial to avoid fines, interest and problems with your company’s cash flow.

When your ApS must register for VAT (MOMS)

In Denmark, most companies that sell goods or services on a commercial basis must register for VAT. You are obliged to register when your expected taxable turnover exceeds DKK 50,000 within any 12‑month period. Many new ApS companies choose to register from day one, even if they are not yet above the threshold, to be able to deduct input VAT on startup costs.

VAT is normally charged at 25% on most goods and services. Certain activities are exempt (for example some financial services, health services and education), but exemptions are narrowly defined and must be assessed carefully. If your ApS only performs VAT‑exempt activities, you generally cannot deduct input VAT on your purchases.

How to register for VAT

VAT registration is done digitally via Virk.dk under the company’s CVR number. You will need to log in with NemID/MitID and provide information such as the company’s main activity (NACE code), expected annual turnover and the date you start VAT‑liable activities. The VAT registration date is important, as you must charge VAT on all taxable sales from that date onward and you can deduct input VAT on costs incurred for your VAT‑liable business.

After registration, SKAT will assign your VAT reporting frequency based on your expected turnover:

VAT returns and payments are submitted via TastSelv Erhverv on skat.dk. Deadlines depend on your reporting frequency, and late filing or late payment leads to interest and possible surcharges.

Employer registration and eIndkomst

If your ApS plans to have employees, including the owner‑manager on a salary, you must register as an employer with SKAT before you pay any wages. Employer registration is also done via Virk.dk and links your CVR number to the eIndkomst system, where all salary information is reported.

As an employer in Denmark, your ApS is responsible for withholding and reporting:

All salary data must be reported to eIndkomst each time you pay wages, typically monthly. The withheld A‑tax and AM‑bidrag must be paid to SKAT by the statutory deadlines. Failure to report or pay on time results in interest and potential penalties.

Choosing the right setup from the start

For a new ApS, it is important to coordinate VAT and employer registration with your business plan and cash‑flow forecasts. Incorrect VAT treatment or missing employer registration can quickly become costly and time‑consuming to correct. A well‑structured setup from the beginning ensures that VAT, payroll taxes and statutory reports are handled correctly, and that your company stays compliant with Danish tax rules as it grows.

Set up mandatory digital bookkeeping system compliant with Danish rules

In Denmark, all ApS companies are required to use a digital bookkeeping system that complies with the Danish Bookkeeping Act and the rules of the Danish Tax Agency (SKAT). From the very beginning, you should choose software that supports electronic storage of vouchers, structured bookkeeping and secure access for your accountant and the authorities.

When selecting a system, make sure it can:

The system must allow you to keep continuous, chronological records of all business transactions and to reconcile your bank on a regular basis. In practice, this means that every invoice, receipt and bank transaction should be recorded with a clear reference, date, amount, VAT code and counterpart account. For most small ApS companies, monthly bookkeeping is the minimum to stay compliant and to meet VAT and tax deadlines on time.

Danish rules require you to keep accounting records and documentation for at least 5 years. A compliant digital solution should therefore offer secure backup, protection against deletion or manipulation of historical entries and clear user rights management. If you use cloud software, check where the data is stored, how long backups are kept and whether the provider can deliver data exports on request from you or the authorities.

It is also important to align your bookkeeping setup with your chart of accounts and reporting needs. For a typical ApS, the system should at least support separation of:

From an operational point of view, you should define who is responsible for daily entries, bank reconciliation, VAT filings and preparation of annual accounts. Grant your accountant or accounting firm direct access to the system so they can review entries, correct errors and prepare year-end adjustments without exchanging files by email.

Finally, make sure your digital bookkeeping system integrates with your other tools, such as your bank, payroll system and invoicing platform. Automatic bank feeds and invoice import significantly reduce manual work and the risk of errors, and they make it easier to comply with Danish requirements for timely and accurate reporting to SKAT and Erhvervsstyrelsen.

Establish shareholder register and prepare founding documents (stiftelsesdokument & vedtægter)

Before your ApS can operate safely and legally in Denmark, you must prepare the founding documents and establish a proper shareholder register. These documents define how the company is owned, managed and represented, and they are required both by the Danish Companies Act (Selskabsloven) and by the Danish Business Authority (Erhvervsstyrelsen).

The two core founding documents are the stiftelsesdokument (founding document) and the vedtægter (articles of association). In practice they are often prepared together and submitted electronically when you register the ApS in the CVR register.

Stiftelsesdokument – the founding document

The founding document records the decision to create the company and identifies the founders. It must at minimum include:

If the share capital is contributed in kind (for example equipment, intellectual property or an existing business), a valuation report from a state-authorised or registered public accountant is required to document the value of the contribution.

Vedtægter – articles of association

The articles of association set the rules for how the ApS is run. They must be drafted in line with the Danish Companies Act and at minimum contain:

You can add more detailed provisions, for example on transfer restrictions for shares, pre-emption rights between shareholders, drag-along and tag-along rights, or specific voting requirements for important decisions. These can also be regulated in a separate shareholders’ agreement, but key rules that affect the company’s formal governance should be reflected in the articles.

Creating and maintaining the shareholder register

Every ApS must keep an up-to-date shareholder register (ejerbog). This register documents who owns the company and is a key control tool for both the authorities and the owners themselves. The register must show at least:

The shareholder register can be kept electronically or on paper, but it must be stored securely in Denmark and be available to the management and auditors. When ownership changes, you must update the register without undue delay and ensure that the changes are also reported in the public register of owners (ejerregister) with the Danish Business Authority when required.

Reporting owners to the public register

In addition to the internal shareholder register, Danish rules require you to register certain owners and controlling persons in the public register of owners. You must report:

Registration is done digitally via Virk and must be kept up to date whenever ownership or control changes. Failure to register owners correctly can lead to enforcement actions and daily fines from the Danish Business Authority.

Why proper documentation matters

Well-prepared founding documents and a correct shareholder register are not just a legal formality. They:

For most new ApS companies, it is advisable to have the stiftelsesdokument, vedtægter and shareholder register prepared or at least reviewed by a professional advisor. This ensures that the documents comply with current Danish legislation and are aligned with your long-term ownership and governance plans.

Open a dedicated business bank account and set up online banking access

For a Danish ApS, having a separate business bank account is not just good practice – in most cases it is a requirement from banks, auditors and the Danish Business Authority. All company transactions, including share capital, VAT (MOMS), salaries and supplier payments, must go through an account in the company’s name, not the owner’s private account.

When choosing a bank, compare account fees, online banking solutions, international payment options and integration with your accounting system. Many Danish banks offer direct integration with common bookkeeping systems, which significantly reduces manual work and the risk of errors.

What you need to open a business bank account for an ApS

Banks in Denmark are obliged to perform strict KYC (Know Your Customer) and anti–money laundering checks. Be prepared that the onboarding process can take from several days to a few weeks, depending on the bank and the complexity of your ownership structure.

Typically, you will be asked to provide at least:

Some banks may also request a simple budget, business plan or information about expected monthly transaction volume, especially if you plan to trade internationally or handle large payments.

Separating company and personal finances

Using a dedicated business account helps you clearly separate private and company expenses, which is crucial for correct bookkeeping and tax reporting to SKAT. All income, costs, VAT payments, salary payouts and dividends should be processed through the company account. This makes it easier to:

Mixing private and business funds on the same account can lead to incorrect tax treatment, problems with deductibility of expenses and, in serious cases, personal liability issues for management.

Setting up online banking and payment solutions

Once the account is approved, activate online banking for all relevant signatories and employees. In Denmark, access to online banking is usually linked to MitID, so each user must have their own MitID to log in and approve payments.

When configuring your online banking, consider:

For payroll, ensure that your bank supports integration with your salary system or that you can easily upload payment files for salaries, holiday pay and AM-bidrag (labour market contributions). This reduces manual work and helps you meet statutory payment deadlines.

Integrating the bank account with your bookkeeping system

To keep your Danish ApS compliant with the mandatory digital bookkeeping rules, connect your bank account to your accounting software as early as possible. Most modern systems allow automatic import of bank transactions, daily or several times per day.

With a proper integration you can:

Make sure that all bank fees, interest, card payments and currency differences are regularly reconciled. This is essential for accurate financial statements and for avoiding discrepancies during year-end closing or an audit.

By opening a dedicated business bank account early and setting up robust online banking access, you create a solid financial foundation for your ApS and make ongoing accounting, VAT reporting and compliance with Danish regulations significantly easier.

Arrange statutory insurance and assess need for additional business coverage

In Denmark, an ApS must consider several types of statutory and practical insurances from the very beginning. Proper coverage protects the company, its management and employees, and is often a prerequisite for contracts with clients, landlords or banks. It is important to review both legally required insurances and additional policies that are strongly recommended for most businesses.

The first step is to clarify whether your company will have employees. If you employ staff, you are normally required to take out workers’ compensation insurance (arbejdsskadeforsikring). This insurance covers occupational injuries and diseases and is mandatory for almost all employers, regardless of whether employees are full-time, part-time or student workers. The premium level depends on the industry risk, payroll size and type of work performed.

If your ApS owns or uses vehicles for business purposes, you must also have third-party motor liability insurance (ansvarsforsikring for motorkøretøjer). This is compulsory for all registered vehicles and covers damage or injury caused to others in traffic. You can supplement this with comprehensive insurance (kaskoforsikring) to cover damage to the company’s own vehicle, theft and vandalism.

For most ApS companies, it is highly advisable to arrange business liability insurance (erhvervsansvarsforsikring). This covers claims from customers or third parties for personal injury or property damage caused in connection with your business activities. For companies providing professional advice or services, you should also consider professional indemnity insurance (erhvervs- eller rådgiveransvarsforsikring), which covers financial losses resulting from errors or omissions in your professional work. In some regulated professions, such as certain financial or legal services, professional liability coverage is a contractual or regulatory requirement.

Another key area is coverage for the company’s assets. If your ApS has offices, warehouses, production facilities or valuable equipment, you should assess the need for contents and property insurance (løsøreforsikring/erhvervsforsikring). This typically covers inventory, IT equipment, furniture and machinery against fire, water damage, theft and vandalism. For companies that rely heavily on IT systems or online services, cyber insurance can be relevant to cover data breaches, cyberattacks and related business interruption costs.

Management should also consider directors’ and officers’ liability insurance (bestyrelses- og direktionsansvarsforsikring, often referred to as D&O). In an ApS, members of the management and board can be held personally liable for certain decisions or failures to act. D&O insurance helps protect the personal finances of directors and executives if they are sued in connection with their management duties.

When assessing your insurance needs, review your business model, industry risk, contractual obligations and the size of your operations. Many Danish insurers offer package solutions tailored to small and medium-sized ApS companies, combining liability, contents, cyber and legal expenses coverage. It is advisable to compare offers from several providers, paying attention not only to price but also to coverage limits, deductibles, exclusions and claims handling procedures.

Finally, keep your insurance portfolio up to date. As your ApS grows, hires more employees, enters new markets or acquires additional assets, your risk profile changes. Review your policies at least once a year and whenever there is a significant change in your business, so that your coverage remains aligned with Danish legal requirements and with the actual risks your company faces.

Set up payroll procedures and employee contracts in line with Danish labour law

Before you hire your first employee in Denmark, you must ensure that your payroll procedures and employment contracts comply with Danish labour law. Proper setup from day one reduces the risk of fines, back payments and disputes with employees or authorities.

Register as an employer and choose payroll setup

If your ApS will have employees, you must register as an employer with the Danish Tax Agency (SKAT) via eIndkomst before the first salary is paid. This allows you to report salary, A-tax and labour market contributions (AM-bidrag) on an ongoing basis.

Most small companies either use an online payroll system or outsource payroll to an accountant or payroll bureau. A compliant payroll solution should automatically calculate and report:

Salary reporting is usually monthly, and payments to SKAT must be made within the statutory deadlines depending on your reporting frequency.

Key elements of a compliant employment contract

Danish law requires that employees who work on average more than 3 hours per week over a 4-week period receive a written employment contract. The contract should be provided no later than shortly after the employment begins and must clearly describe the main terms of employment.

A solid employment contract will typically include:

If your company is covered by a collective agreement, many of these terms will be partly or fully regulated by that agreement and must be reflected correctly in the contract.

Salary, tax and social contributions

Denmark does not have a statutory national minimum wage, but minimum pay levels are often set by collective agreements. When you decide on salary levels, you must ensure that they are competitive and, where relevant, meet the minimums in the applicable agreement.

For each salary payment, you must withhold:

As an employer, you also pay mandatory contributions such as ATP (Arbejdsmarkedets Tillægspension) and, in most cases, contributions to industrial injury insurance and other statutory schemes. Many employers additionally contribute to occupational pension schemes, often in the range of 8–12% of the employee’s salary, depending on industry and collective agreements.

Holiday, leave and working time rules

The Danish Holiday Act gives employees the right to earn 2.08 days of paid holiday per month of employment, corresponding to 25 days (5 weeks) per year when fully accrued. Holiday is accrued and can be taken on an ongoing basis within the holiday year and the subsequent extended period. Your payroll system must track earned and taken holiday and calculate holiday pay correctly for both salaried and hourly-paid employees.

You must also respect rules on working time and rest periods. As a general guideline, average weekly working time may not exceed 48 hours over a reference period, and employees are entitled to daily and weekly rest periods. Special rules apply to night work and certain sectors.

Pension, insurance and employee benefits

Many employees in Denmark expect an employer-funded pension scheme in addition to their salary. If your company is covered by a collective agreement, pension contributions and insurance cover (for example disability and life insurance) are often mandatory and follow fixed percentages. Even without a collective agreement, it is common for employers to contribute to a pension scheme and possibly health insurance as part of the total compensation package.

Make sure that all pension and insurance contributions are clearly described in the employment contract and correctly registered in your payroll system so that payments are made on time to the relevant providers.

Internal procedures and documentation

To keep payroll compliant and efficient, establish clear internal routines, for example:

All payroll documentation, including contracts, payslips, tax reports and correspondence with employees, should be stored securely and in line with GDPR requirements. This ensures that your ApS can document compliance in case of audits by SKAT, Arbejdstilsynet or other authorities.

Implement data protection and GDPR-compliant procedures for client information

When you establish a new ApS in Denmark, you become responsible for protecting all personal data you collect about clients, employees and business partners. Danish companies must comply with the EU General Data Protection Regulation (GDPR) and the Danish Data Protection Act, and the Danish Data Protection Agency (Datatilsynet) actively supervises compliance. For an accounting or consulting business, this is especially important, because you typically process sensitive financial and identification data on a daily basis.

Start by mapping what personal data you collect, for what purpose and on which legal basis. Typical legal bases for an ApS include performance of a contract with the client, compliance with legal obligations under the Danish Bookkeeping Act and tax rules, and legitimate interests such as fraud prevention. If you process special categories of data (for example health information in insurance cases or union membership in payroll), you need an additional legal basis and stricter safeguards.

You must inform clients in clear language about how you process their data. This is usually done through a privacy notice on your website and in your engagement letters. The notice should explain what data you collect, how long you store it, who you share it with (for example SKAT, banks, payroll providers, cloud accounting systems), and what rights the data subjects have, including access, rectification, erasure, restriction, objection and data portability. Make sure the information is easily accessible and consistent across all channels.

Implement internal procedures to ensure that you only collect data that is necessary for specific, clearly defined purposes and that you do not keep it longer than required. As a rule, accounting records and documentation must be stored for at least 5 years under the Danish Bookkeeping Act, counted from the end of the financial year. For anti‑money‑laundering (AML) obligations, identification documents and KYC information for certain clients may have to be stored for 5 years after the end of the business relationship. Define concrete retention periods for each category of data and document when and how data will be deleted or anonymised.

Technical and organisational security measures are a core GDPR requirement. For a Danish ApS this normally includes strong access control to accounting and CRM systems, unique user logins, two‑factor authentication where possible, encrypted connections (HTTPS, VPN), regular software updates, secure backups and clear rules for using laptops and mobile devices outside the office. If you use cloud services or store data outside the EU/EEA, you must ensure that the provider offers adequate protection, for example through EU Standard Contractual Clauses and documented security certifications.

If you use external IT providers, payroll bureaus or cloud accounting platforms, they will usually act as data processors. In these cases you must sign written data processing agreements that meet GDPR requirements. The agreement should describe the subject and duration of the processing, the type of personal data, categories of data subjects, security measures, rules for sub‑processors, assistance with data subject rights and deletion or return of data at the end of the contract. Keep an updated list of all processors and regularly review whether they still meet your security and compliance expectations.

As your ApS grows, consider whether you are required to appoint a Data Protection Officer (DPO). Even if it is not mandatory, it is good practice to designate a person internally who is responsible for data protection, maintains documentation and acts as contact point for Datatilsynet and data subjects. Train all employees who handle client information so they understand confidentiality obligations, how to recognise phishing attempts and how to react in case of a suspected data breach.

GDPR also requires you to be prepared for incidents. Establish a written procedure for handling personal data breaches, including how to identify, contain and document them. In many cases you must notify Datatilsynet within 72 hours of becoming aware of a breach, and in some situations you must also inform the affected individuals. Keep a breach register even for minor incidents, as this documentation can be crucial during inspections.

Finally, document your overall compliance. Maintain records of processing activities, internal policies, consent templates where relevant, data processing agreements and risk assessments. For higher‑risk processing, for example large‑scale profiling or systematic monitoring, you may need to perform a Data Protection Impact Assessment (DPIA). By integrating GDPR into your daily routines from the start, your ApS not only meets Danish legal requirements but also strengthens client trust and the professional image of your accounting business.

Define internal accounting routines and deadlines for reporting and annual accounts

Clear internal accounting routines are essential for an ApS in Denmark to stay compliant, avoid penalties and have a reliable overview of cash flow and tax obligations. From day one, decide who is responsible for bookkeeping, which software you will use, how often you will update the accounts and when you will prepare reports for management and the Danish authorities.

Set up a monthly bookkeeping cycle

For most small and medium ApS companies, monthly bookkeeping is the safest standard. All sales invoices, purchase invoices, bank transactions and cash movements should be recorded and reconciled every month. This includes:

Using a digital, Danish-compliant accounting system makes it easier to meet legal requirements for digital bookkeeping and to share data with your accountant or auditor.

Plan VAT (moms) reporting and payment deadlines

If your ApS is VAT registered, you must follow the reporting frequency assigned by the Danish Tax Agency (Skattestyrelsen). Most new ApS companies start with quarterly VAT reporting. As a rule of thumb:

Integrate these VAT deadlines into your internal routines. For example, close the books for the quarter within the first week after quarter-end, review the VAT report internally or with your accountant, and schedule payment well before the due date to avoid interest and surcharges.

Schedule corporate tax and preliminary tax (B-skat) routines

An ApS is subject to Danish corporate income tax at a flat rate of 22% on taxable profits. You must:

Set internal deadlines for reviewing profit forecasts, at least once or twice a year, and adjust preliminary tax payments to avoid large underpayments and interest.

Define routines for payroll and employer reporting

If your ApS has employees, payroll must be integrated into your accounting routines. Each pay period you need to:

Most companies choose monthly payroll. Align payroll processing dates with your bookkeeping cycle so that salary costs, taxes and social contributions are posted and reconciled every month.

Prepare management reporting and cash flow overview

Internal routines should not only focus on compliance. Use your bookkeeping data to create simple, recurring management reports, for example:

Agree on fixed dates each month or quarter when the management receives and reviews these reports. This helps you react early to liquidity issues, tax exposures or declining margins.

Annual accounts: deadlines and responsibilities

An ApS must prepare annual financial statements in accordance with the Danish Financial Statements Act (Årsregnskabsloven). The key deadlines are:

Define early who is responsible for:

Plan backwards from the statutory filing deadline. For example, set internal deadlines for closing the accounts within one month after year-end, sending material to the accountant shortly after, and holding the ordinary general meeting in good time before the filing limit.

Document your routines in simple written procedures

To ensure continuity and compliance, especially if staff change or you outsource tasks, document your accounting routines in a short internal manual. It should describe:

Well-defined and documented routines make it easier to cooperate with your accountant, pass potential inspections from Danish authorities and keep your ApS financially healthy and compliant.

When carrying out key administrative procedures, due to the risk of errors and possible legal consequences, it is advisable to consult an expert. If necessary, we encourage you to get in touch.

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