Denmark Business License Requirements (2025 Update)

A Denmark business license is essential for companies planning to operate legally within the country. Be it a startup, a mid-sized enterprise, or a multinational expanding into Denmark, securing the right license ensures compliance with national and EU regulations.

Compliance is not only a legal obligation, as it protects businesses from penalties, fines, and possible suspension of operations. For international companies, being properly licensed also reinforces credibility with Danish partners, customers, and government authorities. Operating without the appropriate approvals can damage your reputation and limit access to local markets.

Entrepreneurs and cross-border businesses should be aware that requirements vary depending on industry, company structure, and planned activities. By complying with the regulatory standards, your company demonstrates professionalism, safeguards long-term operations, and builds trust in a competitive European marketplace.

Does Denmark Require a Business License?

In Denmark, there is no blanket national “business license” regime, but rather a mix of registrations and sector-specific permits. At the national level, most businesses must register with the Danish Business Authority and be entered into the Central Business Register (CVR).

This registration is a prerequisite but does not amount to a universal license to operate. In practice, a business license in Denmark is required only in regulated sectors (financial services, healthcare, energy, certain trades, etc.).

Rules may also diverge for foreign vs domestic businesses. Foreign companies establishing a branch must submit proof of incorporation and relevant documents to the central authority, and in regulated sectors, foreign entrants must follow the same licensing standards as domestic companies.

So, while Denmark does not mandate a universal national license, many business activities do require sectoral authorizations. Be sure to check if your business expansion needs specific approval under the Denmark business license regime.

Denmark Business License vs Regional / Municipal Licenses

Denmark business licenses are layered: there’s national-level registration and regulation, followed by local or municipal licenses/permits that depend on region, city, and the specific activity. While nearly all businesses must register with the Danish Business Authority, certain regulated sectors may require additional national permits or authorisations (e.g., from professional or supervisory authorities under national law).

However, Municipalities in Denmark issue additional local licenses for certain activities, such as outdoor seating for restaurants, shop signage, mobile street-vending, or use of public spaces. These are overseen by the individual city or municipality.

For example:

  • Copenhagen: Requires a license/permit for outdoor seating, advertising boards, permits for mobile street vending (size limits, map of allowed areas, etc.).
  • Odense: Even non-Nordic/EU/EEA/Swiss external founders need permits if they reside abroad, and businesses need to register at least 8 days before operation.
  • Aarhus: The City of Aarhus provides local business services, building permits, and development oversight. While many local authorizations are standard, specialized sectors may need extra municipal approvals.

Always check with both national and municipal authorities when applying for a Denmark business license.

Occupational & Professional Licenses in Denmark

Certain professions in Denmark are regulated by law and require authorization, licensing, or recognition before one can practice. Failure to obtain these credentials can legally bar you from operating, even if your company is otherwise registered.

Professions that typically require specialized permits include:

  • Medical & healthcare professionals: The registration of doctors, dentists, nurses, and physiotherapists is overseen by the Danish Patient Safety Authority (Styrelsen for Patientsikkerhed).
  • Lawyers: For legal professions, admission to the Bar is granted by the Danish Minister of Justice, who authorizes qualified lawyers to practice in Denmark.
  • Forklift truck drivers: To work permanently in Denmark, operators must obtain recognition from the Danish Working Environment Authority.
  • Pharmacists / pharmaceutical services: Any service related to the retail sales of medications is licensed via the Danish Medicines Agency.

When applying, you will typically be required to submit proof of qualifications (education, certifications), pass competency or language tests, and sometimes complete adaptation or training within Denmark (especially for foreign professionals). Always check whether your business’ intended professional activity triggers a separate permit beyond the baseline Denmark business license.

VAT License in Denmark

In Denmark, Value Added Tax (VAT), known locally as MOMS, is an indirect tax levied on most goods and services. Businesses must register for VAT if their taxable turnover exceeds DKK 50,000 within a 12-month period.

How to Apply for VAT Registration

To register for VAT in Denmark, follow these steps:

1. Determine Eligibility: Ensure your business meets the turnover threshold or opt for voluntary registration.

2. Prepare Documentation: Gather necessary documents, including:

  • Proof of business registration with the Danish Business Authority (CVR number).
  • Personal identification (e.g., passport for sole proprietors).
  • Details of business activities and expected turnover.

3. Submit Application:

  • Online: Use the Danish Business Authority’s platform to complete the registration form.
  • Paper Form: Complete and mail form SKV 4632 to the appropriate tax office. If your business is based in another EU country, submit the application to the Malmö office; for all other countries, use the Stockholm office.

Upon approval, you’ll receive a VAT registration certificate with your unique VAT number. You will then be obligated to file VAT returns, which are due periodically. VAT registration remains valid as long as your business continues to meet the registration criteria. If your business no longer requires VAT registration, you must apply for deregistration.

Please note that obtaining a VAT registration is distinct from acquiring a Denmark business license. Ensure you comply with both sets of requirements to operate legally in Denmark.

Federal / National Licenses in Addition to a Denmark Business License

In Denmark, certain industries require additional federal or national-level licenses beyond the standard business registration. These licenses are issued by specialized authorities and are necessary for compliance with specific regulations.

Industries requiring federal licenses include:

  • Aviation: Operating aircraft, including sightseeing flights, requires certification with an Air Operator Certificate (AOC) issued by an EU member state and authorization from the Danish Civil Aviation and Railway Authority.
  • Food & Drug: All food businesses, including importers, must register or obtain approval from the Danish Veterinary and Food Administration (DVFA).
  • Import/Export: Importing certain goods, such as chemicals or controlled substances, may require additional permits or notifications to comply with EU regulations.

It’s important to note that obtaining a Denmark business license does not automatically grant permission to operate in these regulated sectors. Businesses must apply separately for the relevant federal or national licenses to ensure full compliance.

How to Get a Business License in Denmark: A Step-by-Step Guide

The Denmark business license registration is a straightforward and mostly digital process. The following step-by-step guide will help you complete all necessary registration steps and secure the required approvals efficiently:

  1. Choose Entity Type & Activity Code: Decide on your business structure. Common options include sole proprietorship (enkeltmandsvirksomhed), private limited company (ApS), or public limited company (A/S). Additionally, select an appropriate industry code (NACE equivalent) that aligns with your business activities.
  2. Register with the Danish Business Authority: Register your company with the Danish Business Authority through their official portal. You’ll need a Danish social security number (CPR) and a digital ID (MitID or an approved foreign eID). This registration provides you with a Central Business Register (CVR) number, which serves as your company’s unique identification.
  3. Apply for VAT Registration: If your business’s taxable turnover exceeds DKK 50,000 within a 12-month period, you must register for VAT. This can be done through the Danish Tax Agency’s e-service.
  4. Obtain Sector-Specific Permits: Depending on your industry, additional licenses may be required. For instance, food businesses need approval from the Danish Veterinary and Food Administration, while pharmaceutical services require authorization from the Danish Medicines Agency.
  5. File at Local Municipal Level (If Required): Certain municipalities may require additional permits, such as for outdoor seating or signage. Check with your local municipality to ensure compliance.
  6. Secure Your License: With a CVR number, VAT registration, sector-specific permit, and any required local permits, your business will be fully licensed to start operations in Denmark.

Understanding how to obtain a business license in Denmark is crucial for legal compliance and smooth operations.

How Much Is a Denmark Business License

When considering how much a business license in Denmark costs, it’s important to understand that most expenses are tied to company registration and related administrative processes rather than a universal “license” fee.

Typical Fees for Company Registration:

  • Company Registration: DKK 670
  • Registration of Changes in the Company: DKK 180
  • Resumption of a Company: DKK 350
  • Registration of More Than Five Secondary Names (for Limited Liability Companies): DKK 1,000 per additional name

Exemptions:

Certain business structures do not incur these fees, including:

  • Sole proprietorships
  • Associations
  • Limited partnerships
  • General partnerships

It’s important to note that these costs cover only the administrative registration process. For businesses operating in regulated fields, such as finance or healthcare, separate fees for additional permits or sector-specific approvals may apply.

Renewing a Denmark Business License

By law, Denmark business license renewal is not required in the traditional sense. Once a business is registered in the Central Business Register (CVR) and for VAT, the registration remains active indefinitely unless changes occur, such as modifying company details or deregistering.

However, all registered companies are required to submit annual financial reports to maintain compliance. Staying on top of annual report deadlines ensures your company remains in good standing, avoids fines, and continues to operate legally.

Penalties for Operating Without a Denmark Business License

Operating a business in Denmark without proper registration or required permits can have serious consequences. Even though some sectors may not require a formal Denmark business license, failure to comply with registration and licensing rules can trigger penalties, such as:

  • Civil Fines: Companies may face monetary fines for operating without proper registration or failing to obtain sector-specific permits.
  • Cease-and-Desist Orders: Authorities can order immediate suspension of business activities until all licensing and registration requirements are met.
  • Criminal Liability: In certain regulated sectors, such as financial services, healthcare, or food production, operating without the appropriate license can result in criminal charges, potentially leading to the prosecution of company officers.

Maintaining compliance with registration requirements, VAT obligations, and sector-specific approvals is essential to avoid these risks. Securing a valid Denmark business license helps ensure your company operates legally, safeguards its reputation, and avoids enforcement actions from Danish authorities.

Trusted Denmark Business License Services by Commenda

Obtaining a business license in Denmark can be complex, with varying requirements depending on your industry and business type. Commenda provides expert guidance to tackle this process with ease, helping entrepreneurs ensure full legal compliance from the start.

With years of experience assisting international businesses, Commenda handles the preparation and submission of all required documentation, communicates directly with Danish authorities on your behalf, and keeps you informed at every step. Our team ensures that your Denmark business license is obtained efficiently, minimizing delays and administrative hurdles.

For businesses ready to enter the Danish market confidently, Commenda offers a reliable, streamlined solution that saves time, reduces risk, and provides peace of mind throughout the licensing journey.

How Commenda Simplifies Denmark Business Licensing

Commenda is an all-in-one compliance platform that streamlines the process of establishing and managing a business in Denmark. From registering your company with the Danish Business Authority to obtaining all necessary sector-specific permits, we handle every step efficiently, ensuring full regulatory compliance.

Integrating with VAT reporting and payroll compliance, Commenda simplifies ongoing administrative tasks while keeping operations aligned with Danish regulations. Our platform automates reminders and renewals for annual reports, VAT filings, and other key obligations, so businesses never miss critical deadlines. 

By combining incorporation, licensing, and compliance into a single platform, Commenda saves time, reduces risk, and gives entrepreneurs confidence as they enter the Danish market. Start your Denmark business license filing with Commenda today with a free consultation.

Conclusion & Next Steps

Obtaining a Denmark business license requires proper company registration, VAT enrollment, and, when applicable, sector-specific permits. Staying compliant with annual reporting and local regulations is essential to avoid fines or operational interruptions. 

Businesses looking to expand into Denmark should act proactively to tackle these requirements without complications. Simplify the process and ensure full compliance by leveraging expert support.

Book a free consultation with Commenda today.

FAQs: Denmark Business License (2025)

Q. How do I get a business license in Denmark?

Register your company with the Danish Business Authority (CVR), obtain a VAT certificate if applicable, and secure any sector-specific permits required for your industry.

Q. How much does a standard business license cost in Denmark?

Registration fees vary by company type: DKK 670 for standard registration, DKK 180 for changes, and DKK 350 for resumption. Sole proprietorships and certain partnerships are usually exempt.

Q. What happens if I operate without a license?

Businesses may face civil fines, cease-and-desist orders, and, in regulated sectors, criminal liability.

Q. Do home-based businesses need a business license?

It depends on the activity. Many small home-based businesses are exempt from registration, but VAT and permits may still apply.

Q. Is a VAT/GST certificate the same as a business license?

No. VAT registration covers tax compliance, while a Denmark business license relates to company registration and sector-specific permits.

Q. How long does approval take in Denmark?

Standard company registration is typically completed within a few days online; sector-specific permits may take longer.

Q. Can I transfer a business license if I expand to another region?

No, you must register locally or obtain additional permits as required by municipal or sector regulations.

Q. What documents are required to renew?

Denmark does not require formal license renewal, but annual reports must be submitted with financial statements and updated company information.

Q. Do foreign-owned companies need additional licenses?

Yes, foreign businesses may require work/residence permits and sector-specific approvals.

Q. Which service offers the best license filing support?

Commenda is a leading platform providing full incorporation, licensing, and compliance support in Denmark.

Q. Does the federal government override regional licenses?

Federal authorities set sector regulations, but regional and municipal requirements must also be met.

Q. How does Commenda help with business license compliance?

Commenda handles incorporation, licensing, automated reminders, VAT, and payroll integration, ensuring full regulatory compliance.