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Expenses Associated with Creating an APS Company

FEE PRICES:

THE INITIAL CAPITAL IS TRANSFERRED TO THE COMPANY AFTER REGISTRATION

In order to establish an ApS company in Denmark, an initial capital of DKK 20,000 is required. This amount is transferred to the lawyer's bank account for verification before the company's registration. After the verification, the lawyer deducts their fee (DKK 1,295 + VAT) and the government fee (DKK 670) from the initial capital. The remaining amount, which is DKK 37,711.25, will be transferred to the new ApS company's bank account once it is opened. The bank account must be in the name of the new ApS company.

Mandatory government registration fees (CVR registration, digital signature, etc.)

When you create an ApS (Anpartsselskab) in Denmark, you must pay several mandatory government fees related to registration and digital identification. These costs are separate from your share capital and professional advisory fees, and they apply whether you register the company yourself or through an adviser.

The central authority for company registration is the Danish Business Authority (Erhvervsstyrelsen), and all registrations are done digitally through Virk.dk.

CVR registration fee for an ApS

To obtain a CVR number and formally register your ApS, you must pay a state registration fee to the Danish Business Authority. For online registration of a new ApS, the fee is typically in the range of a few hundred DKK and is paid directly during the digital incorporation process on Virk.dk. The fee is non-refundable, even if you later decide not to use the company or close it.

The registration fee covers:

Without paying this fee, your company will not receive a CVR number and cannot legally operate as an ApS in Denmark.

Digital signature (MitID Erhverv) and NemKonto

All ApS companies must act digitally towards Danish authorities. This requires a valid digital signature and a NemKonto linked to the company’s bank account.

Key elements include:

Other mandatory registrations with authorities

In addition to the basic CVR registration, many ApS companies must register for specific schemes with the Danish Tax Agency (Skattestyrelsen). These registrations are free of charge but are legally mandatory if your company meets the criteria.

Budgeting for public fees and digital requirements

When planning the costs of forming an ApS, you should separate:

Although the direct government fees for registering an ApS are relatively modest compared to the required share capital, they are unavoidable. Proper handling of CVR registration, digital signatures and tax registrations from the beginning helps you avoid delays, blocked bank accounts and costly corrections later.

Costs of legal assistance and drafting of incorporation documents

When establishing an ApS in Denmark, many founders choose legal assistance to ensure that all incorporation documents are correct, compliant and filed on time. While it is possible to use the Danish Business Authority’s standard templates, professional support significantly reduces the risk of errors that can delay registration or create problems later with ownership, management or taxation.

The typical legal work involved in forming an ApS includes:

For a straightforward ApS with one or a few owners and a standard structure, legal fees usually start from around DKK 3,000–5,000 when using a template-based service or an online provider. If you need individual advice, tailor-made articles of association, or a more complex ownership structure (for example, several shareholders, holding companies, vesting clauses or special share classes), total legal costs will more often range between DKK 7,000 and 15,000 or more, depending on the scope of work and the hourly rates of the law firm.

Many providers offer fixed-price packages for ApS incorporation that include:

When comparing offers, it is important to check whether the price includes all mandatory documents in Danish, any English versions you may need for banks or foreign partners, and whether subsequent minor adjustments (for example, correcting a typo or updating an address shortly after incorporation) are included or billed separately.

For foreign owners or non-residents, legal assistance is often essential. A lawyer or corporate service provider can help navigate Danish rules on management requirements, documentation for foreign shareholders, anti–money laundering checks and communication with the authorities in Danish. This typically increases the total cost compared with a simple, domestic setup, but it also reduces the risk of rejection or prolonged processing times.

Well-prepared incorporation documents also have long-term effects on costs. Clear rules on decision-making, dividend distribution, transfer of shares and exit scenarios can prevent shareholder disputes that are far more expensive to resolve later. Investing in proper legal drafting at the start of your ApS can therefore be seen not only as a formation cost, but also as a way to protect your company and its owners against future legal and financial risks.

Bank account setup fees and requirements for APS companies

Opening a dedicated business bank account is a mandatory and practical step when establishing an ApS (Anpartsselskab) in Denmark. Danish banks are required to perform strict anti–money laundering (AML) and “know your customer” (KYC) checks, which means the process can take time and may involve additional costs beyond the formal company registration.

Typical bank account setup fees for an ApS

Most Danish banks charge a one‑off onboarding or establishment fee when opening an account for a new ApS, especially if there are foreign owners or directors. In practice, you can expect:

Some banks offer “start‑up” packages with reduced fees for the first year, but they still require full documentation and a clear business profile.

Requirements to open a bank account for an ApS

Before the bank can open an account, the ApS must be properly incorporated and registered with a CVR number at the Danish Business Authority (Erhvervsstyrelsen). In addition, banks will normally request:

If any of the owners or directors are non‑residents, the bank may ask for additional documentation, such as tax residency certificates or company documents from foreign entities that own shares in the ApS.

Timeline and practical challenges

Due to AML rules, Danish banks carefully assess new corporate customers. It is common that:

Because of this, many founders coordinate the incorporation and bank application in parallel and use a lawyer or accountant to prepare the documentation package in a way that meets the bank’s compliance expectations.

Capital account vs. operating account

When forming an ApS, the initial share capital must be documented. This is usually done in one of two ways:

After the ApS is registered and has a CVR number, the capital can be transferred to the company’s regular operating account. From that moment, the funds can be used for legitimate business expenses, such as rent, equipment, salaries and professional services, but not for private use by the owners.

Alternative solutions and fintech providers

Besides traditional Danish banks, some ApS companies use licensed payment institutions or fintech platforms that offer business accounts with Danish or European IBANs. These providers may have:

However, it is important to ensure that the chosen provider is properly licensed in the EU/EEA and that the account is accepted by the Danish Tax Agency (Skattestyrelsen) for VAT, payroll and tax payments. Some fintechs do not offer all services needed for a fully operational Danish ApS, such as NemKonto integration or direct access to Danish payment systems.

How a Danish accountant can help

An experienced Danish accounting firm can assist with preparing the documentation, explaining the company structure to the bank and choosing a bank or payment provider that fits your ApS profile. Proper preparation usually reduces onboarding time and helps avoid repeated requests for additional information, which in turn lowers indirect costs and delays in starting business operations.

Accounting and bookkeeping setup costs in the first year

The first year of running an ApS in Denmark is when your accounting and bookkeeping structure is built. Good setup from day one reduces the risk of fines from the Danish Tax Agency (Skattestyrelsen), avoids double work and makes it easier to optimise tax. Below are the main cost elements you should expect in the first 12 months.

1. Initial accounting setup and chart of accounts

Most ApS companies choose an external accountant or bookkeeper to set up the accounting framework. For a small, simple ApS (few invoices per month, no employees, no inventory), a one‑time setup fee typically ranges from DKK 2,000–5,000. This usually includes:

For more complex ApS structures (multiple owners, foreign transactions, inventory, project accounting), the initial setup can easily reach DKK 5,000–10,000 or more, as the accountant must design more detailed processes and controls.

2. Bookkeeping during the first financial year

Ongoing bookkeeping costs depend mainly on transaction volume and complexity. In Denmark, small ApS companies often choose one of these models:

If your ApS issues many invoices, has card payments, online sales or several bank accounts, expect higher costs due to more reconciliation work. If you prepare and upload vouchers yourself to the accounting system, you can usually reduce the external bookkeeping time and fee.

3. VAT (Moms) registration and reporting costs

Most ApS companies must register for VAT when expected taxable turnover exceeds DKK 50,000 within 12 months. Once registered, you must submit VAT returns via TastSelv Erhverv. For new and small ApS companies, VAT is often reported:

External assistance with VAT reporting is often included in a monthly bookkeeping package. If billed separately, a typical price per VAT return for a simple ApS is around DKK 600–1,500, depending on the number of transactions and whether corrections are needed.

4. Payroll setup and salary administration (if you have employees)

If your ApS has employees or pays salary to the director, you must register as an employer and report salary, tax (A‑skat), labour market contribution (AM‑bidrag at 8%) and ATP contributions through the Danish eIncome system (eIndkomst). Payroll setup costs typically include:

One‑time payroll setup for a simple structure (1–3 employees, standard contracts) is often in the range of DKK 1,000–3,000. Ongoing payroll administration is usually priced per payslip, often around DKK 100–250 per payslip when handled by an external provider, sometimes with a small fixed monthly base fee.

5. Accounting software and digital tools

Most Danish ApS companies use cloud‑based accounting software. Popular systems for small and medium businesses typically cost:

Additional digital tools may include:

In total, a small ApS should expect DKK 150–600 per month for software subscriptions in the first year, depending on the chosen tools and number of users.

6. Year-end closing and first annual report

An ApS must submit an annual report to the Danish Business Authority (Erhvervsstyrelsen) no later than 5 months after the end of the financial year (for most small ApS). Even if your company is exempt from audit, you still need proper year‑end closing and a compliant annual report.

For a small, no‑audit ApS with well‑maintained bookkeeping, typical prices for year‑end work and annual report preparation are:

If bookkeeping during the year has been inconsistent or incomplete, the accountant may need extra time to correct and reconcile data before preparing the annual report, which can significantly increase the cost.

7. Tax calculations and corporate tax return

In addition to the annual report, your ApS must file a corporate tax return (selskabsselvangivelse) with Skattestyrelsen. The standard corporate tax rate in Denmark is 22%. Professional assistance with tax calculations and the corporate tax return is often bundled with the annual report, but if billed separately, typical fees for a small ApS are in the range of DKK 2,000–5,000.

In the first year, tax work may include:

8. Typical total accounting and bookkeeping costs in the first year

For a small, straightforward ApS without employees and with limited transaction volume, a realistic estimate for the first year is:

This means that many new ApS companies will spend approximately DKK 18,000–37,000 on accounting and bookkeeping in the first year, depending on how much work is done internally and how complex the business is.

These costs are generally fully tax‑deductible business expenses for your ApS. Investing in a solid accounting setup from the start helps you stay compliant with Danish regulations, avoid penalties and gain a clear financial overview that supports better decisions as your company grows.

Mandatory audit vs. no-audit APS – impact on costs

In Denmark, many small ApS companies can choose to opt out of a mandatory audit, which has a direct impact on the total cost of running the business. Whether you need an audit depends mainly on the size of your company and a few key financial thresholds.

An ApS can normally choose no-audit status if it stays below at least two of the following limits for two consecutive financial years:

If your ApS exceeds at least two of these thresholds, a statutory audit becomes mandatory. In that case, you must appoint a state-authorised or registered public accountant, and the annual financial statements must be audited and filed accordingly.

The cost difference between a no-audit ApS and an audited ApS is significant. For a small company that qualifies for no-audit status, you typically pay only for standard accounting and annual report preparation. For a company that requires a full audit, you must add the auditor’s fee on top of normal bookkeeping and year-end work. Depending on the size and complexity of the business, an annual audit can easily add tens of thousands of DKK to your yearly fixed costs.

When forming a new ApS, it is therefore important to consider:

Many founders choose a no-audit ApS at the start to keep costs down and then switch to audited financial statements later as the company grows. This choice must be reflected in the company’s articles of association and the registration with the Danish Business Authority, and any change between audit and no-audit status must be decided by the general meeting and reported in connection with the annual report.

From a cost perspective, skipping the audit can substantially reduce the ongoing expenses of an ApS in the early years. However, an audit can add value through increased credibility, better internal controls and easier access to financing. The optimal solution depends on your business model, growth plans and the expectations of your stakeholders.

Insurance and liability coverage costs for APS owners and the company

When you establish an ApS in Denmark, insurance and liability coverage are key elements of your total cost structure. Although an ApS limits your personal liability to the company’s share capital, you are still exposed to a range of business risks that are not covered by the legal form alone. In practice, most ApS companies should budget for several types of insurance from the first day of operation.

The most common policies for Danish ApS companies include:

If your ApS has employees, additional mandatory and recommended coverages apply:

From a liability perspective, an ApS structure means that, under normal circumstances, creditors can only claim against the company’s assets and not your personal assets beyond the paid-in share capital. However, personal liability can still arise in cases such as:

In these situations, directors’ and officers’ insurance can be a crucial protection, but it does not replace the need for proper governance, accurate bookkeeping and timely filing of tax and VAT returns.

When budgeting for the creation of an ApS, it is realistic for a small, low-risk company with no employees to allocate at least DKK 6,000–12,000 per year for basic liability and contents insurance. For an ApS with employees, advisory activities or higher operational risk, total annual insurance costs can easily reach DKK 15,000–30,000 or more, depending on industry, turnover and coverage limits.

Insurance premiums are generally tax-deductible business expenses for Danish ApS companies, reducing the effective cost after corporate tax. It is therefore important to integrate insurance planning into your overall financial and tax strategy from the start. A professional accountant can help you classify premiums correctly in your bookkeeping and ensure that all eligible insurance costs are deducted in your annual corporate tax return.

Ongoing fixed costs after incorporation (tax reporting, VAT, payroll, annual report)

Once your ApS is registered, you will face a number of recurring, fixed obligations and related costs. Proper planning of these expenses is essential for maintaining liquidity and avoiding penalties from the Danish authorities.

Tax reporting (corporate income tax)

Danish ApS companies pay corporate income tax at a flat rate of 22% on taxable profits. The standard income year is 12 months, and the corporate tax return is filed digitally to Skattestyrelsen.

Key cost-related points:

VAT (moms) obligations and costs

If your ApS has or expects an annual turnover above DKK 50,000, you must register for VAT. The standard VAT rate in Denmark is 25% and applies to most goods and services.

Ongoing VAT-related costs include:

Payroll administration and labour-related costs

If your ApS has employees – including you as a working director on salary – you must register as an employer and handle payroll, tax withholding and labour market contributions.

Key ongoing costs:

Annual report and statutory filings

All ApS companies must prepare and file an annual report with the Danish Business Authority (Erhvervsstyrelsen). The annual report must be submitted digitally and in accordance with the applicable reporting class (most small ApS companies fall under class B).

Typical annual report costs:

Other recurring administrative costs

In addition to tax, VAT, payroll and annual reporting, most ApS companies incur other fixed administrative costs each year:

When you sum up tax reporting, VAT, payroll administration and annual reporting, it is realistic for even a small, simple ApS to have fixed compliance and administration costs of at least DKK 10,000–25,000 per year. For growing or more complex companies, this amount will typically be higher. Proper budgeting for these ongoing costs from the start will help ensure that your ApS remains compliant, avoids penalties and has stable financial management.

Tax-related costs and potential deductions when forming an APS

When you form an ApS in Denmark, most of the direct formation costs are treated as business expenses in your accounts, but not all of them are immediately tax-deductible. Understanding which costs you can deduct, and when, helps you plan your cash flow and avoid surprises in your first tax year.

Typical tax-relevant costs when forming an ApS

Common expenses connected with setting up an ApS include:

These costs are normally booked in the company, but Danish tax rules distinguish between establishment costs and ongoing operating costs, which affects deductibility.

Establishment costs vs. deductible operating expenses

Under Danish corporate tax rules, pure establishment costs that relate to creating the company itself are generally not immediately deductible. This typically includes:

However, many expenses incurred around the same time can be treated as ordinary operating expenses and are deductible when calculating taxable income, for example:

Corporate income in an ApS is currently taxed at a flat rate of 22%. Every Danish-krone of deductible expense reduces your taxable profit and therefore your corporate tax bill at this rate.

Use of share capital and tax treatment

The minimum share capital for an ApS is DKK 40,000. Once the company is registered, this capital can be used to pay for business-related expenses, including many of the costs listed above.

From a tax perspective:

VAT (moms) on formation-related expenses

If your ApS is VAT-registered and the company’s activities are subject to VAT, you can usually deduct input VAT on most formation-related purchases that are directly connected to your future VATable business.

Key points:

VAT registration is generally required when your VATable turnover exceeds DKK 50,000 within a 12‑month period, but many new ApS companies choose to register earlier to recover VAT on startup costs.

Tax-deductible advisory and accounting costs

Professional assistance is often one of the largest startup expenses. For tax purposes, you should distinguish between:

Correct classification in your chart of accounts is important to ensure that deductible costs are included in your taxable result and that non-deductible costs are handled correctly.

Tax losses in the first years

Many ApS companies have higher costs than income in the first year. If your company shows a tax loss:

Deadlines and compliance to secure deductions

To actually benefit from available deductions, your ApS must meet Danish filing and payment deadlines:

Missing deadlines can lead to penalties and interest, which are generally not tax-deductible and therefore increase your effective cost of doing business.

Why use a Danish accountant when forming an ApS

Danish tax rules on the border between non-deductible establishment costs and deductible operating costs are detailed and can change over time. A local accountant can:

With proper planning, many of the unavoidable costs of forming an ApS can either reduce your taxable profit at the 22% corporate tax rate or generate tax losses that benefit your company in future profitable years.

Digital tools and software expenses needed to run an APS (accounting, payroll, invoicing)

When you run an ApS in Denmark, you are expected to handle all reporting digitally. This means that from day one you should plan for expenses related to accounting, payroll and invoicing software. These tools are not just a convenience – they are often necessary to comply with Danish bookkeeping rules, VAT reporting requirements and digital communication with the authorities.

Most small ApS companies use cloud-based accounting systems that integrate invoicing, bank reconciliation and VAT reporting. For a basic package suitable for a small ApS with limited transactions, you can typically expect subscription costs in the range of approximately DKK 100–400 per month per company, depending on the provider and the number of users. More advanced plans that include inventory management, project modules or extended reporting can easily reach DKK 400–800 per month.

Payroll software is another key cost. Even if you only have the owner as an employee, you must report salary, tax (A‑skat) and labour market contributions (AM‑bidrag) digitally to Skattestyrelsen via e‑Indkomst. Many accounting systems offer integrated payroll modules, but you can also use standalone payroll solutions. For a small ApS with a few employees, payroll software usually costs around DKK 20–40 per payslip, or a fixed monthly fee starting from roughly DKK 150–300 for a basic package. If you have more employees or need features such as holiday management, pension integrations or collective agreement handling, the price will increase.

Electronic invoicing (e‑invoicing) is mandatory when you sell to public authorities in Denmark (NemHandel/Peppol). Some accounting systems include this in the standard subscription, while others charge an additional fee per electronic invoice, for example DKK 1–5 per invoice or a small monthly add‑on. If your ApS mainly sells to private customers or other businesses, you may not need extensive e‑invoicing functionality, but it is still useful to have the option available.

In addition to core accounting and payroll tools, many ApS companies invest in supplementary digital solutions that streamline administration. This may include:

These add‑ons can range from free basic versions to several hundred DKK per month, depending on functionality and number of users. When you compare providers, it is important to look not only at the subscription price, but also at transaction‑based fees (for example per invoice, payslip or bank transaction) and any setup or onboarding costs.

From a tax perspective, all reasonable expenses for digital tools and software that are directly related to running your ApS – accounting systems, payroll software, invoicing tools, backup solutions and similar – are normally deductible as operating expenses. This means the company can deduct them from its taxable income, reducing the effective cost. However, you should ensure that private use is limited or clearly separated, so that the expense can be justified as business‑related in case of a tax audit.

When planning the total cost of establishing and operating an ApS, it is wise to include at least a basic package for accounting, payroll and invoicing in your budget from the beginning. Choosing scalable, cloud‑based solutions that integrate well with your bank and with your accountant can reduce manual work, minimise errors and help you stay compliant with Danish reporting and bookkeeping requirements at a relatively low monthly cost.

Comparing the total cost of APS formation vs. other company forms in Denmark

When deciding whether to form an ApS in Denmark, it is useful to compare the total cost of formation and ongoing compliance with other common company forms, primarily the sole proprietorship (enkeltmandsvirksomhed) and the public limited company (A/S). The choice affects not only your start-up budget, but also your risk, administrative workload and long‑term tax planning.

ApS vs. sole proprietorship (enkeltmandsvirksomhed)

A sole proprietorship is the cheapest and simplest way to start a business in Denmark. There is no minimum share capital requirement, and registration with the Danish Business Authority (Erhvervsstyrelsen) is free when you register online via Virk. You may still incur costs for a NemKonto, accounting assistance and optional insurance, but there is no requirement to lock in equity as with an ApS.

By contrast, an ApS requires a minimum share capital of 40,000 DKK, which can be contributed in cash or qualifying assets. Although this capital is not a fee and can be used for business expenses after incorporation, it does increase the initial funding requirement compared to a sole proprietorship. You will also typically face higher bank fees for opening a corporate account, stronger documentation requirements (business plan, ownership structure, anti‑money‑laundering checks) and higher initial legal and accounting costs.

On the other hand, an ApS offers limited liability: as an owner you are normally only liable up to the amount of your contribution, whereas a sole proprietor is personally liable with all private assets. For many entrepreneurs, the extra cost of forming and running an ApS is justified by this risk protection, especially in businesses with contracts, employees, leases or significant supplier credit.

ApS vs. A/S (public limited company)

An A/S is more expensive to establish and maintain than an ApS. The minimum share capital for an A/S is 400,000 DKK, of which at least 100,000 DKK must be paid in at incorporation. This is ten times the minimum capital of an ApS and in practice makes the A/S form relevant mainly for larger or investor‑backed businesses.

Formation costs for an A/S are also higher. You must prepare more formal incorporation documents, and banks and lawyers typically charge higher fees due to stricter regulation and governance requirements. An A/S must have a board of directors or a supervisory board and, in most cases, is subject to mandatory audit regardless of size. This means recurring audit fees every year, often significantly higher than for an ApS that qualifies for audit exemption.

For most small and medium‑sized companies, an ApS offers a similar level of limited liability and corporate structure as an A/S, but with much lower capital requirements and lower annual compliance costs. An A/S is usually chosen when you need to raise capital from many shareholders, list the company or signal a larger corporate profile to investors and partners.

Formation and ongoing cost comparison

Looking at the total cost, an ApS sits in the middle:

Tax and cash‑flow implications

From a tax perspective, both ApS and A/S are separate legal entities subject to Danish corporate income tax. Profits are taxed at the corporate tax rate before any dividends are paid to shareholders. A sole proprietorship is taxed directly in the owner’s personal income with progressive tax rates and labour market contributions. This can affect your total tax burden and cash flow, especially once your business becomes profitable.

While the tax rules themselves do not change the formal incorporation costs, they influence the overall economic effect of your choice. In many cases, the ability to retain profits in an ApS at the corporate tax rate and distribute dividends strategically can offset the higher formation and compliance costs compared to a sole proprietorship, particularly for businesses with growing or stable profits.

When the extra cost of an ApS is worth it

For very small, low‑risk activities with modest turnover, a sole proprietorship is usually the most cost‑effective option. As soon as you take on employees, sign larger contracts, rent premises or invest in equipment, the limited liability and more professional structure of an ApS often outweigh the additional costs of formation and ongoing administration.

Compared with an A/S, an ApS is generally the most cost‑efficient limited liability form for small and medium‑sized businesses in Denmark. It offers the key benefits of a company—separate legal personality, limited liability, easier ownership transfer and clearer separation between business and private finances—without the very high capital requirement and governance costs associated with an A/S.

If you are unsure which structure gives you the best balance between cost, risk and tax efficiency, it is advisable to have your specific situation reviewed by a Danish accountant who can calculate the total cost of ownership for each option based on your business plan and expected income.

YOU CAN SPEND YOUR EQUITY FOR BUSINESS EXPENSES

Once the initial capital has been transferred to the new ApS company's bank account, the equity can be used to pay for business expenses. There is no requirement to keep the funds in the bank account once the company registration process is complete. However, it is important to follow the rules regarding the expenses that can be incurred. These expenses must be actual company expenses, and company owners are not allowed to withdraw money from the company account for their personal use unless they are reimbursed for company expenses they have paid. In such cases, they receive a salary or dividend.

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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