Yes, opening a corporate bank account in Denmark can be a complicated process, especially for new companies due to regulations that prevent money laundering.
What should be prepared for the bank?
It is recommended to prepare a business plan, 12-month profit and loss budget, annual balance sheet budget, and 12-month cash flow budget to speed up the process of opening a bank account. It is also a good idea to have a professional website to introduce your company to the bank.
While none of the banks are easy to work with, some of the most common choices include Nordea, Danske Bank, and Nykredit. It is typically not worth trying Jyske Bank unless you are willing to pay the high cost of an annual audit.
The cost of setting up a bank account
The cost of an audit is usually DKK 20,000-50,000+VAT per year. Although it is not legally required for smaller companies in Denmark, some banks, including Jyske Bank, require it to open a bank account. Both Nordea and Danske Bank typically charge around DKK 4,000-5,000 to open a company bank account.
If you are unable to open a business bank account in Denmark, it can be a significant challenge for your business as having a bank account is necessary for receiving payments from customers and paying suppliers. While it may be possible to open a corporate bank account in Denmark, it may require patience and time.
In what situation is it most common for a Danish bank to open a company account?
Danish banks are more likely to open a company bank account after 3-6 months when the first financial report can be shown.
If you cannot open a Danish bank account, an alternative option is to use Revolut, an online banking platform. Although not a Danish bank, Revolut enables you to open a corporate bank account in various currencies, including DKK, EUR, and USD. However, transferring money to a bank account in Denmark requires an IBAN/SWIFT transfer, which may raise suspicion among B2C customers. While Revolut may not be the best long-term solution, it enables you to do business until you can get a Danish bank account. Additionally, Revolut offers a MasterCard that you can use to pay for business expenses and finalize payment solutions for your website.
In general, a personal meeting with the bank is required for the business owner/director due to anti-money laundering regulations.
No, only the owner/director of the company can open a bank account during the onboarding process.
No, it is not possible for your accountant to open a bank account for you.
While it is possible to establish a limited liability company (ApS) in Denmark without a corporate bank account, one will be needed if you expect the company's share capital to be transferred after registration. Additionally, once you begin receiving money from clients, a corporate bank account will be necessary. It is important to note that accepting payments from clients on a private bank account is considered a shareholder loan and heavily taxed in Denmark.
To start a sole proprietorship in Denmark, it is possible to do so without a corporate bank account, but once payments from customers begin to come in, an account will be necessary. It is strongly recommended not to use a private bank account for business use, as it may result in the bank closing your account.
There are many banking options available in Denmark, each with different features. To select the most favorable option, it is important to study and compare multiple offers. One of the most commonly compared features of bank accounts in Denmark is their price. Below are tables featuring selected bank accounts, starting from the cheapest.