Danish company types: your easy guide to starting a business in Denmark

Understanding the key Danish company types

Thinking of establishing your business in Denmark? Fantastic choice!

Denmark consistently ranks as one of the best countries in the world for doing business, thanks to its stable economy, digital-first approach, and innovative environment. However, one of the first and most crucial decisions you’ll face is choosing the right legal structure for your company. This choice impacts everything from your personal liability and tax obligations to administrative burdens and future growth potential.

You do not need to be a legal expert to understand your options. The sections below break down the most common Danish company types to help you make an informed decision for your venture.

The Private Limited Company (Anpartsselskab — ApS)

This is by far the most common company type in Denmark, especially for startups, small to medium-sized enterprises and foreign investors. It is an independent legal entity.

• Liability: Generally limited to the capital contributed. Personal guarantees, unlawful conduct or other legal grounds can still create personal liability.
• Minimum share capital: DKK 20,000. At registration, at least 25% of subscribed capital and at least DKK 20,000 must be documented; an ApS formed with the minimum capital therefore pays the full DKK 20,000.
• Key features: A flexible management structure, separation between owner and company finances, and capacity to hold assets, incur debts and contract in the company’s own name. The Danish Business Authority states that founders may be foreign individuals or legal persons and sets no special nationality or residence requirement for founders; identity and registration requirements still apply.
• Ideal for: New businesses, growth-oriented startups, SMEs and foreign entrepreneurs seeking liability protection.

The Public Limited Company (Aktieselskab — A/S)

An A/S is typically used by larger businesses and is comparable to a public limited company in other jurisdictions.

• Liability: Generally limited to the capital contributed. Personal guarantees, management liability or other legal grounds can still create personal liability.
• Minimum share capital: DKK 400,000.
• Key features: A more formal governance structure, including a mandatory Executive Board and a Board of Directors or Supervisory Board. An A/S can issue shares to the public and be listed on a stock exchange.
• Ideal for: Large enterprises, companies planning substantial capital raises, or businesses aiming for a future public listing.

Sole proprietorship and partnership (I/S)

Sole proprietorship (Enkeltmandsvirksomhed)

The simplest form of business ownership, run by one individual. Liability is personal and unlimited, no minimum capital is required, and the business is not a separate legal entity. Profits are taxed at owner level. The online Start Company solution requires a Danish CPR number plus MitID or an approved eIDAS identity; a person without Danish MitID can use the non-Danish registration form, which requires passport documentation. Tax residence and registration eligibility must be assessed separately.

Partnership (Interessentskab — I/S)

An I/S is owned and operated by two or more individuals or legal entities. Liability is unlimited, joint and several, so each partner may be responsible for the full debt of the partnership. No minimum capital is required. It is relatively simple to establish, commonly supported by a partnership agreement, and profits are taxed at partner level.

P/S, foreign-company branch and PMV

Limited partnership company (Partnerselskab — P/S)

A hybrid combining partnership and limited-company features. It has partners with limited liability and at least one general partner with unlimited liability. It is commonly used for investment vehicles, large projects or complex collaborations that need different liability profiles.

Branch of a foreign company (Filial)

A branch is not a separate legal entity but an integrated part of the foreign parent. The parent remains liable, no separate Danish share capital is required, and the branch normally uses the parent company’s name followed by “filial”. The branch manager is responsible for filing the foreign company’s annual report in Denmark, subject to any applicable statutory exemption.

Personally owned small business (Personligt ejet mindre virksomhed — PMV)

A simplified form for one owner with VAT-taxable turnover below DKK 50,000 per calendar year. Liability is personal and unlimited, there is no minimum capital, the business cannot have employees or import/export outside the EU, and its CVR number must be renewed every three years. A PMV is not VAT-registered; if taxable turnover is expected to exceed the threshold, another form such as a sole proprietorship is required.

Key considerations when making your choice

Use these questions to narrow the options:

• How much liability are you willing to take, and do you want to protect personal assets?
• What initial capital can you invest?
• Will there be one owner, several partners, or outside investors?
• Which registration route and identity credentials apply—for example Start Company with CPR and MitID or approved eIDAS, or the non-Danish registration form?
• What level of setup, accounting and annual-reporting administration is appropriate?
• How will profits be taxed under the chosen form?
• Will the structure support future growth, investment or an eventual sale?