How to Register a Foreign Company in Denmark (branch or Aps), Step‑by‑step (2026)

Last updated: 27 May 2026

Understanding how to register a foreign company in Denmark is the critical first step for any German business planning to operate, hire or tender in the Danish market. Denmark offers two principal routes, registering a branch of your existing German entity, or incorporating a Danish private limited company (ApS) as a fully separate subsidiary. Each route triggers different obligations around liability, taxation, governance and immigration, and the registration playbook has shifted materially since early 2025 thanks to a halved ApS minimum capital requirement and updated work‑permit salary thresholds that took effect on 1 April 2026.

This guide walks through every stage of the process, entity choice, document preparation, filing with the Danish Business Authority (Erhvervsstyrelsen), tax and payroll set‑up, and work‑permit sequencing, so that general counsel, CFOs and M&A managers at German companies can plan with precision.

Overview of the Registration Process and Who It Applies To

Any foreign company that intends to carry on business in Denmark on a permanent basis must register with the Danish Business Authority and obtain a CVR number (the Danish central business register number). The two entity forms open to German companies are:

• Branch (filial). A legal extension of the German parent. The parent retains full liability for the branch’s obligations. The branch is not a separate legal person under Danish law but is treated as a permanent establishment for tax purposes.
• ApS (anpartsselskab). A Danish private limited company with its own legal personality. The shareholders’ liability is limited to their capital contribution. The ApS is tax‑resident in Denmark and subject to Danish corporate income tax on worldwide income.

Three regulators govern different parts of the process: the Danish Business Authority (Erhvervsstyrelsen) handles company and branch registration; SKAT handles VAT, payroll withholding and tax registration; and Nyidanmark (the Danish Immigration Service) handles work and residence permits for non‑EU staff.

When to Choose Branch vs ApS, Summary Decision Test

The choice between branch and subsidiary depends on liability appetite, tax planning, local contracting needs and whether you intend to hire Danish staff. A detailed decision checklist appears below in the eligibility section; as a quick rule, register a branch if you need a light local presence without separate governance, and form an ApS if you need limited liability, Danish tax residence or the ability to participate in local tenders that require a Danish legal entity.

Quick Pre‑Registration Checklist

• Define the business purpose and activities to be conducted in Denmark.
• Secure a Danish business address (registered office).
• Identify a local contact person or agent for filings.
• Gather founding documents, certified translations and notarisations.
• Estimate timelines, allow 4–8 weeks end‑to‑end for a straightforward registration, longer if work permits are needed.
• Determine whether you will recruit local staff (this triggers immigration and payroll registration requirements).

Eligibility and Prerequisites to Register a Foreign Company in Denmark

Before filing, German companies must satisfy entity‑specific eligibility rules and resolve several cross‑border prerequisites around tax, capital and local presence.

Branch Eligibility

A branch may be registered by any foreign company that is validly incorporated in its home jurisdiction. The registration trigger is the intention to carry on business in Denmark on a more‑than‑temporary basis, which typically means maintaining a fixed place of business, employing staff locally or entering into contracts in Denmark in the company’s own name. Companies that only send workers temporarily to perform services (without establishing a permanent presence) may instead be subject to RUT registration obligations under the Danish Posting of Workers rules, administered by the Danish Business Authority.

ApS Eligibility

Forming an ApS requires compliance with the Companies Act (Selskabsloven). Key eligibility points for German founders:

• Minimum share capital: DKK 20,000, reduced from DKK 40,000 with effect from 27 February 2025 under the Selskabsloven amendment (L 1667). Capital must be evidenced at registration by bank confirmation or, for non‑cash contributions, an appraisal report.
• Danish director not mandatory: There is no general requirement for a director to be Danish‑resident. However, a registered Danish address and a local contact person for official correspondence are required.
• Articles of Association (Vedtægter): Must state the company name, registered office, objects and share capital.
• Industry‑specific rules: Certain regulated sectors (financial services, transport, healthcare) impose additional residency, licence or capital requirements, verify before filing.

Branch vs Subsidiary, Six‑Point Decision Checklist

Tax and Payroll Prerequisites

Regardless of entity form, a Danish employer must register for payroll withholding (A‑income) with SKAT, open a NemKonto (mandatory payment account linked to the CVR), and register for VAT if carrying on taxable supplies in Denmark. These steps are sequenced after CVR issuance.

Step‑by‑Step Procedure to Register a Foreign Company in Denmark

The following numbered steps cover the full registration procedure from entity‑choice decision to work‑permit applications. The timeline table at the end of this section summarises who does what and how long each stage typically takes.

Step 1, Decide Structure and Prepare Founding Documents

The German parent’s board (or shareholders) must resolve whether to register a branch or incorporate an ApS. For a branch, prepare a board resolution authorising the Danish branch and appointing a local branch manager. For an ApS, prepare the founding resolution (stiftelsesdokument), articles of association (Vedtægter) and evidence of share capital. Since 27 February 2025, the minimum share capital for a new ApS is DKK 20,000 under the Selskabsloven amendment (L 1667). Capital can be paid in cash (evidenced by bank confirmation) or as non‑cash contributions (evidenced by an appraisal). Engage Danish counsel at this stage to draft or review the articles and ensure compliance with Selskabsloven requirements.

Step 2, Reserve Company Name and Secure a Danish Business Address

Check name availability on the Danish Business Authority’s name search at Virk.dk. The chosen name must not be identical or confusingly similar to existing registered names. For an ApS, the name must include the designation “ApS” or “anpartsselskab.” Simultaneously, secure a Danish registered office address, this can be a physical office lease or a registered office provided by a corporate service provider. Evidence the address with a rental agreement or a service provider confirmation letter. This step typically takes 1–7 days.

Step 3, Notarise, Legalise and Translate Documents

Documents originating in Germany may require notarisation by a German notary and apostille (under the Hague Apostille Convention, to which both Germany and Denmark are parties). Key documents that commonly need notarisation include the power of attorney (if filing via agent), the founding resolution and, for branch registration, the German commercial register extract. Translate all German‑language documents into Danish or English via a certified translator. In practice, the Danish Business Authority accepts English‑language filings, but confirm acceptance for each specific document type. Allow 1–7 days for notarisation and translation.

Step 4, File Registration with the Danish Business Authority (CVR)

Submit the registration application online via Virk.dk, the Danish Business Authority’s digital self‑service portal. The filing process differs slightly depending on entity type:

• ApS registration: Complete the online incorporation form; upload the articles of association, founding resolution, proof of capital payment, ID copies for directors and signatories, and proof of Danish address. Designate the management (director or board) and provide their personal details.
• Branch registration: Complete the branch registration form; upload the parent company’s certificate of incorporation, the German commercial register extract (recent, commonly less than three months old), the board resolution authorising the branch, the appointment of the local branch manager, and proof of Danish address.

Filing is done via MitID (Denmark’s digital identity system) or, for foreign applicants without MitID, through an authorised local agent or Danish counsel holding a valid MitID. Attach all required documents as PDFs. Ensure the signatory is a natural person authorised to bind the company, corporate signatories alone are not accepted on the Virk portal.

Step 5, Obtain CVR Number and Public Extracts

Once the Danish Business Authority processes the application, a CVR number is issued and the company or branch appears in the public Danish business register (CVR.dk). For complete filings, the CVR is typically issued within 1–5 business days; complex or incomplete applications may take up to 14 business days. After issuance, download the official CVR extract, this document confirms the entity’s name, CVR number, registered address, management details and registered activities, and is routinely required by banks, counterparties and public authorities.

Step 6, Register for VAT and EORI

If the entity will carry on taxable supplies in Denmark (sale of goods, provision of services), register for VAT with SKAT via skat.dk. State the nature of taxable activities and expected turnover. VAT registration typically takes 1–10 business days. If the entity will import or export goods within or outside the EU, apply simultaneously for an EORI number (Economic Operators Registration and Identification) through Danish Customs / SKAT. EORI registration usually completes within the same day to 5 business days. Both registrations are generally free of charge, though accountant fees will apply for ongoing compliance.

Step 7, Open a NemKonto and Set Up Payroll Withholding

Danish law requires every registered entity to designate a NemKonto, a payment account used for all public disbursements and collections. Open a Danish business bank account (allow 1–10 business days, depending on the bank’s KYB/KYC checks) and register it as the NemKonto via NemKonto.dk. Concurrently, register with SKAT for payroll withholding on A‑income (employment income) if you will have employees. Set up the payroll system to comply with Danish withholding rates and reporting obligations.

Step 8, Register for Social Security, Pension and Insurance

As a Danish employer, register for mandatory social contributions. Denmark’s employer‑side social security costs are relatively low compared with Germany, but employers must provide occupational pension contributions (commonly 8–15 per cent of salary, depending on the applicable collective agreement or individual contract) and hold the required workers’ compensation insurance. Ensure employment contracts comply with the Danish Salaried Employees Act (Funktionærloven) and, where applicable, relevant collective agreements. Registration for insurance and pension typically takes 1–5 business days after CVR and NemKonto are in place.

Step 9, Apply for Work and Residence Permits (If Sending Non‑EU Staff)

If the German company intends to second or hire non‑EU/EEA nationals to work in Denmark, the employer must apply for work and residence permits through Nyidanmark (the Danish Immigration Service). The main permit routes for skilled workers include the Pay Limit Scheme, the Positive List scheme and the Fast‑Track scheme for certified companies. Updated salary thresholds under the Pay Limit Scheme took effect on 1 April 2026, employers must verify that the offered salary meets or exceeds the current threshold before filing. Permit processing times range from 2 to 12 weeks or more, depending on the scheme, completeness of documentation and caseload.

Critically, align the sequence: obtain the CVR and set up payroll first, because Nyidanmark requires employer registration details and a signed employment contract with Danish salary and pension terms in the permit application.

Registration Process Timeline

Required Documents and Information to Register a Foreign Company in Denmark

The table below consolidates every document typically required for branch registration in Denmark and ApS registration in Denmark. For each document, the notes indicate who issues it, whether translation or legalisation is required, and the accepted format.

Timeline and Key Deadlines for Registering a Company in Denmark

Sequencing is critical. Several registration steps can run in parallel, but work‑permit applications depend on prior completion of CVR and payroll registration. The table below shows the earliest possible start point and typical completion window for each task.

Work‑permit timing is often the critical path for German companies planning to second staff to Denmark. Align recruitment and secondment planning with Nyidanmark processing windows and the 2026 salary‑threshold rules before making employment commitments.

Costs, Fees and Tax Considerations for Registering in Denmark

The table below summarises one‑time and recurring costs. All monetary figures are approximate and should be verified with the relevant authority at the time of filing.

Tax Considerations

Danish corporate income tax applies to both branches (on Danish‑source income as a permanent establishment) and ApS entities (on worldwide income). Transfer pricing documentation is required for transactions between the Danish entity and its German parent or other related parties. Withholding tax may apply on dividend distributions from a Danish ApS to its German parent, although the EU Parent‑Subsidiary Directive typically eliminates or reduces this. Register for VAT promptly if carrying on taxable supplies to avoid penalties. For cross‑border tax planning, engage Danish tax counsel early in the process.

What Changes in 2026, Practical Implications for Registration and Hiring

Two regulatory changes materially affect how German companies register a foreign company in Denmark and hire staff in 2026:

• ApS minimum capital halved. The Selskabsloven amendment (L 1667) reduced the minimum share capital for a new ApS from DKK 40,000 to DKK 20,000, effective 27 February 2025. The practical effect for 2026 registrations is a lower cash outlay at incorporation and simplified proof‑of‑capital documentation. Companies formed before that date that maintain the older capital level are not required to reduce it.
• Work permit salary thresholds updated. The Pay Limit Scheme and related immigration routes updated their salary thresholds effective 1 April 2026. Industry observers expect the higher salary floors to affect budget planning for secondments and local hires, particularly in mid‑level technical and administrative roles. Employers should verify the current threshold on Nyidanmark before issuing offer letters or filing permit applications.
• Ongoing tax and accounting developments. Recent 2025–26 tax reform items may affect transfer pricing requirements and accounting obligations for cross‑border groups. Early indications suggest that SKAT is increasing scrutiny of permanent establishment classifications and intra‑group service charges. Verify the latest SKAT guidance before filing annual accounts or structuring intercompany arrangements.

Common Pitfalls When Registering in Denmark, and How to Avoid Them

• Filing incomplete CVR applications. Missing certified translations, expired commercial register extracts or unsigned documents are the most common reasons for delays. Use a pre‑filing checklist and have all documents certified and translated before submitting on Virk.dk.
• Mis‑sequencing hires and permit applications. Do not promise start dates to non‑EU employees before Nyidanmark approvals are in hand. Follow the correct sequence: CVR → payroll registration → signed employment contract → permit application.
• Underestimating capital‑funding complexity for an ApS. Cash deposits are straightforward, but non‑cash (apport) contributions require an independent appraisal, which can add weeks to the timeline. Plan the capital structure and funding method before commencing the filing process.
• Assuming a Danish director is mandatory. Danish law does not generally require a resident director for an ApS, but a registered Danish address and reliable local contact for correspondence are non‑negotiable. In regulated sectors (financial services, certain transport activities), additional residency requirements may apply, confirm before filing.
• Ignoring transfer pricing and VAT triggers. Failing to register for VAT on time or to prepare transfer pricing documentation for intra‑group transactions can result in penalties, back‑assessments and reputational risk. Engage Danish tax counsel as soon as the entity structure is decided.

Conclusion

Knowing how to register a foreign company in Denmark, and executing the process in the right sequence, gives German businesses a solid operational and legal foundation in the Danish market. From entity‑choice decision through CVR filing, VAT registration, payroll set‑up and work‑permit applications, each stage carries deadlines, document requirements and regulatory touchpoints that reward careful planning. With the ApS capital threshold now at DKK 20,000 and 2026 immigration salary thresholds in force, the process is both more accessible and more nuanced than in prior years. Companies entering Denmark should engage experienced cross‑border counsel to align corporate, tax and immigration steps and avoid the common pitfalls that delay market entry.

Sources

1. Danish Business Authority, Establish a Business in Denmark (Virk)
2. Danish Business Authority, RUT / Register Pages
3. SKAT, Starting a Business / VAT & Payroll
4. Nyidanmark, Pay Limit Scheme (Work & Residence Permit Rules)
5. Retsinformation, Selskabsloven Amendment (ApS Capital Reduction)
6. Jura360, Legal Commentary on ApS Capital Change
7. Invest in Denmark, How to Set Up a Business in Denmark
8. VisaVerge, Denmark Sets New Salary Rules for Work and Residency Permits