How much does the incorporation of a company cost in Denmark?

The cost to incorporate a company in Denmark typically ranges from DKK 3,000 to DKK 5,000, depending on your business structure, documentation complexity, and whether you use professional service providers.

This estimate covers key steps, including registration with the Danish Business Authority, preparation of incorporation documents, tax registration, and basic administrative coordination.

While government fees are fixed and relatively low, overall costs vary based on your company structure and the level of professional support required. Legal advisors and service providers often represent a significant portion of the total setup cost.

In this blog, you’ll understand the full cost of incorporating a business in Denmark, including government charges, professional fees, and ongoing compliance expenses.

Key Takeaways:

• Incorporating a business in Denmark typically ranges from DKK 3,000 to DKK 5,000 for a standard ApS setup, excluding share capital
• Documentation, legal support, and service provider fees account for most of the cost, while government registration fees remain fixed and low
• Annual costs mainly include accounting, tax filings, and compliance requirements rather than recurring government renewal fees
• Using a service provider or legal advisor increases upfront cost but reduces errors, delays, and compliance risk, especially for foreign-owned companies
• Choosing a simple structure, keeping documentation simple, and avoiding unnecessary expedited services helps control overall incorporation costs

Government Fees to Incorporate in Denmark

Starting a business in Denmark means you’ll need to pay a few key government fees to get everything legally set up.

While these fees are relatively low, they are required to officially register your company with the Danish Business Authority and establish your business in the Central Business Register (CVR).

Here’s a breakdown of what to expect:

1. Business Registration Filing Fee

This is the main fee you’ll pay to the Danish Business Authority (Erhvervsstyrelsen) to officially register your company. It includes:

• A fixed fee of approximately DKK 670 to DKK 1,000
• No variable fee based on share capital or company size
• No additional charges for the number of directors or shareholders

2. Articles of Incorporation Cost

This refers to the preparation of your Articles of Association (Vedtægter), which must be submitted during registration. The articles of incorporation cost​ in Denmark depends on your company structure:

• ApS (Anpartsselskab): Costs are generally lower due to a more standardized structure
• A/S (Aktieselskab): Costs are higher due to more detailed governance and documentation requirements

3. Name Reservation Fees

In Denmark, you don’t need to reserve your company name separately before incorporation, as name validation is handled during registration. However, in some cases:

• Name-related requests may cost around DKK 200
• Name checks are typically included within the registration process

4. Notary and Documentation Fees

Denmark generally does not require notarization for standard company incorporation, as the process is handled digitally. However, additional documentation costs may apply in certain cases:

• Notary fees range from DKK 2,000 to DKK 4,000, depending on document complexity
• If documents are not in Danish or English, certified translations may be required, starting from DKK 1,000
• Legalization or apostille for foreign documents may cost around DKK 250 per document 

Beyond official registration fees, businesses typically incur professional service costs.

Professional and Service Provider Costs

Many businesses choose to work with third-party professionals or service providers to manage the incorporation process in Denmark. Here’s a breakdown of these costs:

1. Lawyer Fees for Incorporation

Legal support can be useful, especially if your company structure involves foreign ownership or more complex arrangements. Here are some situations where you might need a lawyer:

• Complex business structures: If your ApS includes multiple shareholders, holding entities, or specific governance terms, legal work becomes more detailed
• Document drafting and review: Lawyers can prepare or review your Articles of Association and ensure your incorporation documents meet Danish corporate requirements
• Foreign ownership considerations: Legal support helps with identification requirements, cross-border documentation, and regulatory alignment

Cost Range:

• Around DKK 10,000 to DKK 20,000 

2. Incorporation Service Provider Fees

Many companies use service providers to handle document preparation, filing, and coordination with the Danish Business Authority.

Types of Service Providers:

• Online providers: Offer a cost-effective, step-by-step approach with basic document preparation and filing support
• Full-service firms: Manage end-to-end incorporation, including document drafting, authority coordination, tax registration, and compliance guidance

3. Registered Office or Registered Agent Fees

Every company in Denmark must have a registered address. If you don’t have a local office, you can use a service provider to maintain a compliant address and handle official communication.

Cost Range:

• Typically between DKK 5,000 and DKK 15,000 per year, depending on the level of service and support 

4. Business Bank Account Setup Fees

When incorporating a business in Denmark, opening a business bank account is a required step for depositing share capital and managing financial operations.

Costs Include:

• Onboarding fees: Vary by bank based on account type and verification requirements
• Initial deposit: Typically DKK 40,000 for an ApS, required to activate the account
• Compliance checks: Banks carry out AML and KYC checks, which may affect processing time and requirements

Additional Costs:

• Monthly maintenance fees: Usually range from DKK 50 to DKK 250, depending on the bank and account features
• Transaction fees: Apply to domestic and international transfers
• Foreign exchange fees: Typically range from 0.5% to 2.0% on currency conversions
• International transfer fees: Usually between DKK 50 and DKK 200 per transaction

Businesses should also consider share capital obligations and tax registration costs.

Capital and Tax Registration Costs

When incorporating a business in Denmark, it’s important to consider both share capital requirements and tax registration as part of the overall process.

Here’s a detailed breakdown:

1. Minimum Share Capital Requirements

In Denmark, businesses must meet minimum share capital requirements depending on the type of company structure they choose.

Declared vs Paid-In Capital:

• Declared Capital: This is the amount stated in your Articles of Association. It represents the financial base of your company at the time of incorporation
• Paid-In Capital: The actual amount contributed by shareholders. For an ApS, the full declared capital must be deposited before registration

Impact on Registration Fees:

• In Denmark, registration fees do not increase with share capital
• The filing fee remains the same regardless of company size or capital contribution
• However, larger or more complex company structures, such as an A/S, may lead to higher overall costs due to additional legal documentation and compliance requirements

2. Tax Registration (VAT, Corporate Tax)

Tax registration is required for your business to operate legally in Denmark. Here’s a breakdown of the main tax obligations:

Corporate Tax Registration

To legally operate and meet tax obligations, your company must register with the Danish Tax Agency (Skattestyrelsen).

Cost:

• Free. There is no direct government fee when registering with the Danish Tax Agency
• You may incur professional fees if you use an accountant or tax advisor

VAT Registration

In Denmark, VAT applies if your business exceeds the registration threshold. You must register for VAT if your annual turnover exceeds DKK 50,000.

Cost:

• Free: VAT registration is completed through the Danish Tax Agency without a separate government fee
• Optional: Additional fees may apply if you use a professional for VAT setup or compliance

Other Taxes and Licenses

Depending on your business activities, you may need additional registrations or approvals before starting operations.

Costs:

• Industry-specific permits or regulatory approvals may apply
• Fees vary depending on the authority, business type, and regulatory requirements

Taken together, these factors outline the total projected incorporation expense.

Total Estimated Cost to Incorporate a Business in Denmark

The total cost of incorporating a company in Denmark typically ranges from DKK 3,000 to DKK 5,000, depending on your company structure, documentation requirements, and whether you use professional support.

Here’s a breakdown of the cost to incorporate a business in Denmark:

Government Fees:

• Business Registration Filing Fee (Danish Business Authority)
• Articles of Incorporation preparation and submission
• Name validation (included within registration)
• Notary and documentation costs (if applicable)
• Translation or legalization costs for foreign documents

Professional Service Fees:

• Lawyer fees for incorporation
• Incorporation service provider fees
• Registered office or address service fees

Additional Costs:

• Industry-specific permits or regulatory approvals
• Business bank account setup and onboarding fees

Those preferring complete support can review full-service provider estimates.

Full-Service Incorporation Cost Estimate

Full-service providers offer structured support, including legal guidance, document preparation, and coordination with Danish authorities. Here’s what a full-service package usually includes:

• Full-service packages include legal and compliance support: Service providers manage document preparation, filings, and coordination with the Danish Business Authority and tax authorities
• Basic full-service packages cover standard incorporation tasks: These include document submission, company registration, and initial tax setup
• Premium services offer more tailored support: Includes support for foreign ownership, complex structures, cross-border documentation, and ongoing compliance planning

For clarity, a summary table outlining key costs is provided below to show how much it costs to incorporate.

Cost Summary Table

To give you a clear picture of how much incorporation costs in Denmark, here’s a table:

Annual regulatory and reporting obligations create continuing expenses.

Ongoing and Annual Compliance Costs

Once your business is incorporated in Denmark, there are several recurring costs you need to plan for to keep your company compliant with local regulations.

Here’s an overview of the main ongoing and annual compliance costs:

• Annual Filing Fees: Companies must file annual financial statements with the Danish Business Authority. Filing itself is generally low-cost, but additional costs may apply for preparation, review, or corrections by professionals
• Accounting and Tax Filing Costs: Businesses must maintain accounting records and file corporate tax and VAT returns. Ongoing accounting services typically range from DKK 2,000 to DKK 5,000 per month, depending on company size and activity
• Corporate Secretarial and Compliance Costs: Maintaining corporate records, updating company information, and meeting statutory requirements may involve additional administrative or advisory costs

There can also be hidden or unexpected costs that merit attention.

Hidden or Unexpected Costs to Consider

While incorporating your business in Denmark, some costs may not be immediately obvious but can affect your total budget over time. Here are the key ones to keep in mind:

• Expedited Processing Fees: Denmark does not charge a formal government expedite fee, but service providers may charge for faster document preparation and coordination
• Amendments and Structural Changes: Costs may apply when updating your company name, directors, shareholders, or share structure, including filing and professional fees
• Penalties for Non-Compliance: Approx. 3.7% on outstanding tax amounts and fines for late or incorrect payroll reporting and contributions is DKK 1,400 for each period
• Additional Licensing Fees: Certain industries require permits or approvals, which may involve application and compliance costs
• Employer-Related Costs: If you hire employees, you must manage payroll, tax reporting, and employer contributions, which become ongoing operational expenses

Evaluating DIY versus professional services helps identify the most suitable approach.

Cost Comparison: DIY vs Professional Incorporation

When considering the cost of incorporating your business in Denmark, you have two main options: handling the process yourself (DIY) or using a professional service provider. Here’s a quick comparison of how much incorporation costs in Denmark:

• DIY Incorporation: Lower upfront costs, as you only pay government fees and basic administrative expenses. However, errors in documentation or registration can lead to delays or additional costs
• Professional Incorporation Services: Higher initial costs for service providers or lawyers, but they handle document preparation, filings, and compliance, reducing the risk of errors and saving time

Having assessed both routes, attention can shift to the specific stages where expenses arise.

Step-by-Step: Where Costs Occur in the Incorporation Process

Once you understand where costs arise in the incorporation process helps you plan your budget clearly. Here are the steps on how much it costs to incorporate in Denmark:

1. Entity Type: Choosing the right structure, typically an ApS or A/S, affects documentation complexity, capital requirements, and ongoing compliance costs
2. Reserve Company Name: Name validation is included within the registration process.
3. File Incorporation Documents: At this stage, you pay the Danish Business Authority filing fee and incur costs for preparing and submitting incorporation documents
4. Register for Taxes: Corporate tax and VAT registration with the Danish Tax Agency are free, though professional fees may apply if you use advisors
5. Open Corporate Bank Account: Banks require a share capital deposit and may charge onboarding or administrative fees
6. Local Permits or Licenses: Certain industries require regulatory approvals or permits, which can add additional costs depending on the business activity

These insights provide a basis for lowering incorporation expenses.

How to Reduce the Cost of Incorporating in Denmark?

The cost to incorporate a company in Denmark can vary depending on your structure and level of support, but there are ways to manage expenses without compromising compliance.

Here are some strategies:

• Choose a simpler entity structure: An ApS is typically more cost-efficient than an A/S, with lower complexity and manageable compliance requirements
• Avoid unnecessary expedited services: Denmark’s digital system is already efficient, so additional service fees for faster processing are often not required
• Use bundled service packages: Some providers offer combined incorporation, tax registration, and compliance services at a lower overall cost
• Ensure accurate documentation: Correct and complete filings help prevent delays, rework, and additional administrative costs
• Consider online incorporation platforms: These can provide structured support at a lower cost for straightforward setups

An international comparison highlights Denmark’s ranking on incorporation costs.

How does the cost to incorporate in Denmark compare internationally?

When comparing the cost of incorporating a company in Denmark with that in other countries, it’s important to consider both the process and the overall cost structure.

• Denmark vs United States (USA): Incorporation costs in the USA vary by state and provider. Denmark offers a fixed government fee and a centralized registration system
• Denmark vs United Kingdom (UK): The UK provides a low-cost, fully digital incorporation process. Denmark follows a similar approach but includes higher share capital requirements
• Denmark vs Singapore: Singapore offers a streamlined digital system with clear fees. Denmark simplifies the process by combining name validation with registration
• Denmark vs United Arab Emirates (UAE): The UAE offers multiple setup options with varying costs. Denmark uses a standardized system with consistent requirements
• Denmark vs Canada: Canada’s incorporation process varies by province, while Denmark maintains a centralized system with predictable costs

How Commenda Simplifies Company Incorporation in Denmark?

Incorporating a company in Denmark involves more than filing paperwork. It requires corporate structuring, registration with the Danish Business Authority, tax registration with the Danish Tax Agency, and ongoing regulatory compliance.

Commenda is a global incorporation and compliance platform that uses technology-enabled workflows and enterprise-grade oversight to manage entity setup, tax registration, and statutory obligations across jurisdictions.

Commenda helps:

• Manage corporate structuring and incorporation workflows: Submit and track incorporation requests, upload documentation, and coordinate formation steps through a centralized system that provides operational clarity.
• Support tax registration and regulatory alignment: Organize tax registration requirements and regulatory obligations within structured compliance workflows, depending on jurisdiction coverage.
• Gain end-to-end process visibility: Centralize stakeholder information, formation documents, and filing progress to reduce manual administrative burden and improve control.
• Maintain ongoing compliance and governance tracking: Monitor statutory deadlines, record-keeping requirements, and regulatory updates to remain compliant post-incorporation.
• Ensure documentation management and audit readiness: Store and organize incorporation and compliance records within a structured system to facilitate regulatory reviews and future due diligence.

Book a consultation with Commenda today to simplify your expansion into Denmark with clarity and structured oversight.

FAQs

1. Can I incorporate in Denmark without being physically present?

Yes. You can incorporate remotely by using a service provider or legal representative to handle registration, documentation, and tax setup.

2. Is it possible to incorporate in Denmark without a local director?

Yes. Denmark does not require a local director for an ApS. However, you must have a registered address in Denmark and meet local compliance requirements.

3. What happens if my incorporation documents are rejected?

If your application is rejected, you’ll be notified of the issue. You must correct and resubmit the documents, which may delay registration and add costs.

4. Can I change my company structure after incorporation, and what does it cost?

Yes. You can update your structure by filing changes with the Danish Business Authority. Costs depend on filing fees and the complexity of the change.

5. Are there tax implications immediately after incorporation?

Yes. Your company must comply with Danish tax obligations, including corporate tax and, if applicable, VAT, once it becomes active.

6. Do I need a registered office address to incorporate in Denmark?

Yes. A registered address in Denmark is required for official communication and must be maintained at all times.

7. What compliance requirements apply immediately after incorporation?

You must maintain accounting records, register for VAT if required, file tax returns, and comply with employment and regulatory obligations.

8. Can I pause or dissolve a company after incorporation, and what are the costs?

Yes. Dissolution requires settling liabilities and filing closure documents. Costs depend on administrative steps and any professional support used.

9. Is online incorporation legally valid in Denmark?

Yes. Denmark allows fully digital incorporation through the Danish Business Authority, provided all required information is submitted correctly.