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DkDenmark Subsidiary.






Country Capital



Danish krone (kr.) (DKK)

In order to start hiring employees in Denmark, you might consider setting up a subsidiary. While subsidiary laws may seem easy to navigate, the time and investment commitment of setting up a subsidiary may not be the best option for your growing business. Read on to learn more about how to set up a Denmark subsidiary and alternative options for expanding your business.

How to establish a Denmark subsidiary

There are 2 main corporation options in Denmark — an Aktieselskab (A/S) or Anpartsselskab (ApS). A/S is similar to a public limited liability company, while ApS is the equivalent of a private limited liability company. Both are relatively quick to set up. However, most companies choose to set up an ApS.

Deciding between the 2 options depends on the size of your company and your expected activity level in Denmark. A company may choose A/S if it wants the subsidiary to be listed on the Copenhagen Stock Exchange. Setting up this type of company takes more time and resources.

Small and mid-sized companies usually choose ApS. These are typically subsidiaries for multinational companies.

For a Danish company to be valid, it needs to be registered in the Danish Commercial and Companies Agency. There are some necessary steps required to open a subsidiary, such as:

  • The articles of association need to be filed before the Danish Commercial and Company Agency, which will include details regarding the subscribed capital.
  • The determination of the contribution of each shareholder should be stated.
  • Companies must register in the Commercial Registry.
  • Investors must submit an application for registering the workers for the employment insurance.

It is also mandatory to open a bank account and set up a payroll account.

Denmark subsidiary laws

Denmark subsidiary laws differ based on which type of company you choose.

A/S companies must invest a minimum of DKK 500,000. The investor does not have to pay the full registered share capital, but the paid-up capital must equal at least 25% of the registered share capital. Each investors’ liability is restricted to the value of the shares they purchase.

The law requires A/S companies to utilize a 2-tier supervisory system made up of a Board of Directors and an Executive Board. A minimum of 3 people must be on the Board of Directors, and 1 person — typically the CEO — must sit on the Executive Board. Directors do not have to live in Denmark.

ApS companies must invest a minimum of DKK 40,000, and they have the same investment rules as an A/S company. If you choose this Denmark subsidiary option, you will only need a single shareholder from any nationality. Plus, ApS companies can utilize a 1- or 2-tier system depending on their needs.

Both A/S and ApS companies must submit annual financial statements.

Benefits of establishing a Denmark subsidiary

One benefit is that it is easier to open a subsidiary in Denmark compared to other countries. Other advantages include:

  • Companies can incorporate online and start operations within a few hours.
  • Management does not have any residency requirements.
  • You can hold shareholder’s and board meetings electronically.
  • You won’t need any notarial deeds.
  • Language requirements are flexible.
  • You can distribute dividends on an interim basis.
  • Denmark company law is the same as current EU legislation.
  • There are favorable tax climates.

Other important considerations

During the Denmark subsidiary setup process, you will need a digital signature called a NemID. This signature allows business employees to register electronically. You’ll also need workers’ insurance as well as a bank account where you can deposit your investment capital.

Before registering your company on your own, it’s important to realize you will also need a significant amount of time and budget to travel back and forth to Denmark during the process. By working with G-P, you can avoid unneeded travel and expenses.

Enter new markets with G-P — no new entities required.

Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 Global Growth Platform™ to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.

Get in touch today to learn more about how we can streamline the global growth process.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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