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Nordic EU member with strong renewable energy sector
Region
WESTERN EUROPE
Corporate Tax
22%
Setup Time
1 weeks
Currency
DKK
Denmark, the southernmost Nordic country, combines strong institutions with innovation leadership. The country's transparent company registration and high trust environment support business setup in one of the world's easiest places to do business.
With a population of 5.9 million, Denmark offers exceptional quality of life with world-class public services. Danish is the official language, with excellent English proficiency. Copenhagen provides cosmopolitan living with cycling infrastructure and design heritage.
Healthcare is publicly funded and excellent. Safety is outstanding with very low crime rates. The cost of living is high, particularly housing in Copenhagen. The "hygge" culture emphasizes comfort and quality of life.
The progressive society and work-life balance attract international talent.
Corporate tax rate stands at 22%. Personal income tax reaches approximately 56% including local taxes on higher incomes. VAT applies at 25%. The tax burden is high but supports comprehensive public services.
The Danish krone is pegged to the Euro through ERM II. The economy is export-oriented with strengths in pharmaceuticals, shipping, energy, and design. The startup ecosystem is active, particularly in Copenhagen.
Company registration through the Danish Business Authority is digital and efficient. The ApS (private limited company) is the standard vehicle. Foreign ownership faces no restrictions.
Company formation can complete within days online. Minimum capital is DKK 40,000 for ApS. At least one director is required. Annual compliance includes audited financial statements for larger companies.
The Danish Financial Supervisory Authority oversees virtual asset service providers under EU-aligned regulations. Registration is required for crypto businesses under AML frameworks.
Denmark's approach is regulatory but not prohibitive, with several exchanges operating under proper authorization.
The Danish Gambling Authority regulates online gambling through licensing. The gambling license framework is well-established with clear requirements and a regulated market since 2012.
The market is open to licensed operators but compliance requirements are substantial.
High labor costs and taxes suit high-value operations rather than cost-competitive manufacturing. The small domestic market requires export orientation. Competition for talent is significant.
Banking access is excellent through strong Nordic banks. Professional services are sophisticated. Denmark's reputation for transparency supports brand positioning.
Denmark suits innovative companies, Nordic regional headquarters, and businesses valuing institutional quality for their business setup.
Local: ApS
Local: A/S
Local: Filial
| Corporate Tax Rate | 22% |
| Personal Income Tax Rate | 52% |
| VAT / Sales Tax | 25% |
| Capital Gains Tax | 42% |
| Withholding Tax | 27% |
| Reduced Corporate Tax Available | No |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | Yes |
| Banking Access | EXCELLENT |
| Financial Privacy | LOW |
| Currency Controls | NONE |
| Local Bank Account Required | Yes |
| Non-Resident Bank Account Allowed | No |
| Physical Presence for Banking | No |
| Banks Restrictive (High Risk) | No |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | No |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $1,125,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | EU Travel Rule / FATF |
| Business Plan Required | Comprehensive business plan, activity programs, governance manuals, technical schematics required |
| Personnel Required | CEO, Compliance Officer, AML Officer, fit-and-proper tested senior managers |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity insurance required for custody services |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | ESMA MiCA Register and Finanstilsynet register |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Danish Financial Supervisory Authority (Finanstilsynet) |
| Licensing Fee | $0 |
| Licensing Fee Details | Application fees vary; MiCA CASP licensing handled through Finanstilsynet. Transitional period ended 30 December 2025 for existing VASPs |
| Permitted Business Models | Exchange, Custody, Brokerage, Transfer services, Advisory, Order transmission, Portfolio management |
| Permitted Activities | Trading, custody, transfer services, exchange services, advisory, order execution |
| Restricted Activities | Non-compliant stablecoins, unregistered token offerings |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |
| Derivatives Allowed | Yes |
| RWA Tokenization Allowed | Yes |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | No |
| Required Share Capital | $0 |
| Capital Maintained in Account | No |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A |
| Business Plan Required | Detailed business plan including expected gross gaming revenue projections |
| Personnel Required | Fit-and-proper tested management, compliance personnel |
| Insurance Required | No |
| Remote Incorporation Possible | Yes |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | https://www.spillemyndigheden.dk/en/licence-holders |
| Renewal Period | 5 years |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | Danish Gambling Authority (Spillemyndigheden) |
| Licensing Fee | $327,500 |
| Licensing Fee Details | Application fee DKK 327,500 (2025) for full license; DKK 65,500 for revenue-restricted license; annual fees based on GGR ranging from DKK 60,100 to DKK 6,151,700; 28% tax on gross gaming revenue |
| Permitted Business Models | B2C online betting, B2C online casino, B2B game supply (from January 2025) |
| Permitted Activities | Online betting, online casino, sports betting, poker, gaming machines, lotteries |
| Restricted Activities | Land-based casinos have separate licensing; lotteries operated by Danske Spil monopoly |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | Yes |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $2,625,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant, EU PSD2/PSD3 |
| Business Plan Required | 3-year business plan with financial projections, governance structure, risk management framework |
| Personnel Required | CEO, CFO, Compliance Officer, AML/MLRO, Board members with fit-and-proper testing |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity insurance required |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 2 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Finanstilsynet register of authorized institutions |
| Renewal Period | Annual compliance review |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Danish Financial Supervisory Authority (Finanstilsynet) |
| Licensing Fee | $0 |
| Licensing Fee Details | Application fees vary by license type; PI: EUR 125,000 minimum capital; EMI: EUR 350,000 minimum capital |
| Permitted Business Models | Payment Institution (PI), Electronic Money Institution (EMI), Investment firms |
| Permitted Activities | Payment services, e-money issuance, account management, money transfers, card issuance |
| Restricted Activities | Full banking activities require separate bank license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |