4 Crucial Actions to Undertake Following the Establishment of a New APS Enterprise

1st STEP: APPLY FOR NEMID

A NemID serves as a digital signature that you can use to access government websites, online banking systems, and various other online platforms. To obtain a new NemID, you can order it through https://www.medarbejdersignatur.dk/, which is only available in Danish.

2nd STEP: CREATE A MAILBOX ON "E-BOXES"

In Denmark, government institutions send emails to a company's digital mailbox called "e-boxes." Some private companies also offer to send mail through this mailbox. A company's e-Box functions like an internet mailbox where the user can read their emails after logging in with their NemID. If a company has a NemID, they need to create a company e-Box to access their digital mail.

3rd STEP: ASSIGN "NEMKONTO"

When creating a new company account with a bank in Denmark, it's crucial to ensure that the bank designates it as a NemKonto, which is a regular company bank account authorized to operate as a NemKonto. Having a NemKonto enables the transfer of government reimbursements such as VAT and tax. If a Danish limited liability company doesn't have a registered NemKonto, refunds will only be released after the account is assigned NemKonto status. To check if a bank account has NemKonto status, visit https://www.nemkonto.dk/. Alternatively, you can contact the bank for confirmation. If a company doesn't have a bank account in Denmark, they can apply to use a foreign account as a NemKonto by submitting a special form.

4th STEP: TRANSFER THE COMPANY'S EQUITY FROM THE LAWYER

After setting up a new account for your company in a bank in Denmark, your lawyer can transfer the minimum required initial capital of DKK 20,000 to your company from the client account where you deposited the money during the registration process. To initiate the transfer, you need to request it from your lawyer. If you encounter any issues during the traditional bank account registration process, it's advisable to use Revolut.

Register the Company for VAT (Moms) and Employer Obligations with SKAT

Once your ApS has been registered with the Danish Business Authority, the next crucial step is to register the company for VAT (moms) and, if relevant, as an employer with the Danish Tax Agency (Skattestyrelsen, formerly SKAT). Proper and timely registration ensures you can issue valid invoices, reclaim input VAT and avoid penalties.

When must an ApS register for VAT (moms)?

In Denmark, a company must register for VAT when it carries out independent economic activity and its taxable turnover is expected to exceed DKK 50,000 over a 12‑month period. Many ApS companies choose to register from day one, even if they are not yet above the threshold, to be able to deduct input VAT on startup costs.

Key points:

• VAT registration is mandatory once the DKK 50,000 turnover threshold is expected to be exceeded within 12 months
• Voluntary registration is possible below this threshold
• Most business-to-business (B2B) activities are VAT liable at the standard rate

Current Danish VAT rates relevant for an ApS

Denmark applies a single standard VAT rate on most goods and services:

• Standard VAT rate: 25% on most supplies
• 0% VAT (exempt with credit): Mainly for certain international transport services and exports of goods outside the EU
• VAT-exempt sectors (no right to deduct input VAT): For example certain financial services, insurance, health care and some educational services

If your ApS operates in a sector with VAT exemptions, the right to deduct input VAT may be limited or not available. This should be considered when planning your pricing and cost structure.

How to register for VAT and employer obligations

Registration is done digitally via the Danish Business Authority’s self-service solution (Virk) and the Danish Tax Agency’s online services. In most cases, you can handle VAT and employer registration in one combined process.

1. Log in to Virk using the company’s NemID/MitID and select the registration form for tax and VAT
2. Choose the relevant registrations:
   • VAT (momsregistrering)
   • Employer registration (arbejdsgiverregistrering), if you will pay salaries
   • PAYE/withholding for owners receiving salary from the company, if applicable
3. Provide expected start date of VAT-liable activity, estimated annual turnover and business description
4. Submit the registration and wait for confirmation and your VAT number (CVR number also functions as VAT number with “DK” prefix)

Normally, the registration is processed electronically, and you can begin issuing VAT invoices from the effective registration date stated in the confirmation.

VAT reporting periods and deadlines

The Danish Tax Agency assigns a VAT reporting frequency based on your expected turnover. For new ApS companies, the default is often quarterly reporting, but this can change as your turnover grows.

• Quarterly VAT reporting: Typical for small and medium-sized companies. VAT return and payment are usually due one month and 10 days after the end of the quarter.
• Half-yearly VAT reporting: Possible for very small businesses with low turnover, subject to specific conditions.
• Monthly VAT reporting: Required for larger companies above a certain turnover threshold (the threshold is set by the Tax Agency and may be adjusted periodically). Monthly VAT is typically due one month and 17 days after the end of the month.

You must always check your assigned reporting frequency in your tax account (skattekontoen) and comply with the specific deadlines shown there.

Employer registration: A-skat, AM-bidrag and holiday pay

If your ApS will have employees or pay salary to working shareholders, you must register as an employer with the Danish Tax Agency. As an employer, the company is responsible for withholding and paying:

• A-skat (income tax withholding): Withheld according to each employee’s tax card
• AM-bidrag (labour market contribution): 8% of the employee’s gross salary before income tax
• ATP and other statutory contributions: For example ATP (labour market supplementary pension) and, where applicable, contributions under collective agreements

Employer obligations include:

• Registering each employee via the income reporting system (eIndkomst)
• Withholding A-skat and AM-bidrag from each salary payment
• Reporting salaries and withholdings monthly via eIndkomst
• Paying the withheld amounts to the Tax Agency by the statutory deadlines, typically the 10th of the following month for small and medium employers

Coordination between VAT, payroll and bookkeeping

To avoid errors and penalties, VAT and employer obligations should be integrated into your accounting routines from the start:

• Set up your accounting system to automatically calculate 25% VAT on applicable sales and record input VAT on purchases
• Ensure that salary payments, A-skat, AM-bidrag and ATP are posted correctly in the general ledger
• Reconcile your VAT account and payroll liabilities with the balances shown in your tax account on an ongoing basis

Consistent bookkeeping makes VAT returns and payroll reporting significantly easier and reduces the risk of late payments or incorrect filings.

Consequences of late or missing registration

If your ApS fails to register for VAT or as an employer on time, the Danish Tax Agency can:

• Assess VAT and payroll taxes retroactively from the date the activity started
• Charge interest and surcharges on late payments
• Impose administrative fines for missing or late filings

In serious or repeated cases, the authorities can also initiate audits and, in extreme situations, report the company for tax offences. Early and correct registration is therefore essential for a compliant and stable start of your business.

For many new ApS companies, it is efficient to let a professional accountant handle the initial VAT and employer registration, set up the correct tax codes in the accounting software and establish clear routines for ongoing reporting and payment.

Set Up Mandatory Digital Reporting for Tax and Annual Financial Statements

Once your new ApS is registered, you must set up the mandatory digital channels used for tax reporting and filing annual financial statements in Denmark. Almost all communication with the Danish Tax Agency (Skattestyrelsen) and the Danish Business Authority (Erhvervsstyrelsen) is fully digital, and failure to use these systems correctly can lead to fines and missed deadlines.

1. Activate and access TastSelv Erhverv (business tax portal)

TastSelv Erhverv is the online portal where you handle corporate tax, VAT (moms), payroll taxes (A-skat, AM-bidrag) and various registrations. To use it, your ApS must:

• Have a valid CVR number
• Have a NemID/MitID Erhverv administrator set up for the company
• Grant the right digital roles and permissions to owners, directors, employees or your accountant

After logging in to TastSelv Erhverv, verify that your company is correctly registered for the relevant schemes, such as VAT, employer obligations and corporate income tax. This is also where you will later submit your VAT returns, payroll reports and make changes to registrations.

2. Understand the main tax reporting obligations

Every ApS must report and pay the following main taxes digitally:

• Corporate income tax (selskabsskat) – standard rate 22% on taxable profits
• VAT (moms) – standard rate 25% on most goods and services, if your turnover exceeds the registration threshold
• Payroll taxes – including withheld income tax (A-skat) and labour market contribution (AM-bidrag) of 8% on employees’ gross salary

All of these are reported electronically via Skattestyrelsen’s systems. Depending on your size and activity, reporting can be monthly, quarterly or annually, but the submission is always digital.

3. Set up digital corporate tax reporting

Corporate income tax for ApS companies is reported and paid digitally. Key points include:

• Tax rate: 22% on the company’s taxable profit
• Prepayments: Larger companies may be required to make advance tax payments during the income year
• Final tax return: Filed electronically after the end of the financial year via TastSelv Erhverv

When you set up your digital reporting, make sure your accounting system can produce a tax-ready profit and loss statement and balance sheet that align with Danish tax rules. Many companies integrate their accounting software directly or export standard files that can be used by their accountant to complete the digital tax return.

4. Register and configure digital VAT (moms) reporting

If your ApS is or will be VAT liable, you must report VAT digitally through Skattestyrelsen. Important elements are:

• Standard VAT rate: 25% on most sales of goods and services in Denmark
• Reporting frequency: Typically quarterly for smaller companies, but monthly or half-yearly periods may apply depending on turnover and activity
• Digital submission: VAT returns are completed and submitted online in TastSelv Erhverv

When setting up your digital VAT reporting, ensure your invoicing and accounting system correctly distinguishes between output VAT (on your sales) and input VAT (on your purchases) and can generate VAT summaries for each reporting period. This will significantly reduce the risk of errors when you file online.

5. Prepare for digital payroll and withholding tax reporting

If your ApS will have employees, you must handle payroll reporting digitally. This includes:

• Withholding A-skat (income tax) from employees’ salaries
• Calculating and paying AM-bidrag (8% labour market contribution)
• Reporting salaries and tax withholdings electronically to Skattestyrelsen

Most companies use payroll software that is integrated with the Danish tax systems, so that monthly salary data and tax withholdings are reported automatically. When choosing payroll software, verify that it supports digital reporting to Skattestyrelsen and can export the necessary documentation for your accountant.

6. Set up digital filing of annual financial statements with Erhvervsstyrelsen

Almost all ApS companies must file their annual financial statements digitally with the Danish Business Authority. The key requirements are:

• Digital format: Annual reports are filed electronically, typically in XBRL or another accepted structured format
• Deadline: The annual report must be submitted within a fixed number of months after the end of the financial year (for most ApS, this is 6 months)
• Language and content: The report must follow Danish accounting rules and contain the required statements, notes and management declarations

To prepare for this, choose accounting software or an auditor that can generate an annual report in the correct digital format. Many systems are directly connected to Erhvervsstyrelsen’s online filing portal, making submission smoother and reducing the risk of technical errors.

7. Coordinate accounting software with digital reporting

For efficient compliance, your internal accounting setup should support all mandatory digital filings. When configuring your system, consider:

• Whether the software can produce standard reports that match Skattestyrelsen’s and Erhvervsstyrelsen’s requirements
• Options for exporting data in formats accepted by your accountant or auditor
• Automatic backups and audit trails, so that digital filings can be documented and reproduced if needed

A well-configured accounting system reduces manual data entry in the tax portals and lowers the risk of discrepancies between your books and the figures reported digitally.

8. Assign responsibilities and monitor deadlines

Finally, define who in the company is responsible for each digital filing and how deadlines will be monitored. At a minimum, you should:

• Assign a person or external accountant to handle VAT, payroll and corporate tax submissions
• Ensure that management reviews and approves the annual financial statements before digital filing
• Use calendar reminders or software alerts for all statutory deadlines

Clear internal procedures, combined with properly set up digital reporting, will help your new ApS stay compliant with Danish tax and accounting regulations from the very beginning.

Establish a Corporate Bank Account and Implement Internal Payment Procedures

Opening a dedicated corporate bank account is one of the first practical steps after forming an ApS in Denmark. It separates business and personal finances, makes it easier to comply with Danish bookkeeping rules and is often required by investors, auditors and the Danish Business Authority in case of control.

Most Danish banks will require that the company is fully registered with a CVR number before they open an account. In practice, the process can take from a few days to several weeks, as banks are obliged to perform detailed Know Your Customer (KYC) and anti–money laundering checks.

Documents typically required by Danish banks

Although each bank has its own procedures, you should be prepared to provide at least:

• CVR number and registration extract from the Danish Business Authority (Virk)
• Articles of association and the foundation document of the ApS
• Ownership structure, including information on all ultimate beneficial owners (usually anyone owning 25% or more)
• Valid ID and proof of address for all directors and beneficial owners (passport/ID card and recent utility bill or similar)
• Business description, expected turnover and main customer/supplier countries
• Proof of paid-in share capital (minimum DKK 40,000 for an ApS) if it is still held in a temporary client account

If the company has foreign owners or directors, banks may request additional documentation and a more detailed business plan.

Choosing the right type of corporate account

For a new ApS, the minimum setup usually includes:

• A DKK business current account for daily payments and receipts
• Access to online banking with NemID/MitID Erhverv integration
• A payment card (typically a debit card) for business expenses

Many companies also open a separate tax/VAT account to set aside funds for corporate tax and VAT (moms). This reduces the risk of using money that will be due to Skattestyrelsen later.

Transferring the share capital to the corporate account

If the initial share capital was deposited into a lawyer’s or bank’s client account during incorporation, it should be transferred to the new corporate account once the bank is opened. Keep:

• The bank statement or confirmation of the original deposit
• The transfer confirmation from the client account to the company’s own account

These documents are important for your accountant and for proving that the minimum capital requirement has been met and is available to the company.

Linking the account to NemKonto and public payments

Every Danish company must have a NemKonto, which is the bank account used for payments from public authorities, such as VAT refunds or reimbursements. Once the corporate account is active, you should register it as the company’s NemKonto. This ensures that any payments from Skattestyrelsen or other authorities are transferred directly to the correct business account.

Designing internal payment procedures

Clear internal payment procedures help prevent errors, fraud and liquidity problems. Even in a small ApS with one owner-manager, it is useful to define how payments are approved, executed and documented.

At a minimum, consider the following elements:

• Approval rules: Decide who can approve supplier invoices, salary payments and one-off transfers. In multi-owner or multi-director companies, set monetary limits above which a second approval is required.
• Bank access levels: Use the bank’s role system to separate users who can prepare payments from those who can approve them. This “four-eyes principle” is strongly recommended for companies with more than one employee involved in finance.
• Payment frequency: Define fixed payment days (for example, once or twice per week) to maintain control over cash flow and avoid ad hoc transfers.
• Supporting documentation: Require that every payment is backed by an invoice, contract or other written documentation and that it is stored together with the accounting records in accordance with Danish bookkeeping rules.

Handling salaries, taxes and VAT from the bank account

When you start paying salaries, you must ensure that the corporate account is integrated with your payroll and tax obligations. In Denmark, salary payments typically trigger:

• Withholding of A-tax (income tax) and AM-bidrag (labour market contribution of 8% of gross salary)
• Payment of ATP contributions and any agreed pension contributions

These amounts are reported and paid to Skattestyrelsen via the company’s corporate account, usually monthly. It is good practice to schedule these payments immediately after payroll is run, to avoid missing deadlines and incurring interest or surcharges.

Similarly, VAT registered companies must pay VAT at the intervals assigned by Skattestyrelsen (typically quarterly for smaller companies and monthly for larger ones). Many businesses transfer estimated VAT to a separate internal “VAT savings” account during the period, so that the funds are available when the payment is due.

Integrating the bank account with accounting software

To simplify bookkeeping and improve accuracy, connect your corporate bank account with your accounting system (for example, e-conomic, Dinero or similar Danish solutions). Bank feeds allow automatic import of transactions, which can then be matched with invoices and receipts. This reduces manual work, supports timely reconciliation and helps you comply with Danish requirements for up-to-date and traceable accounting records.

Ongoing monitoring and internal controls

Once the corporate bank account and payment procedures are in place, review them regularly. Reconcile the bank account with the accounting records at least monthly, monitor for unusual transactions and update user rights when employees join or leave the company. Well-structured banking and payment routines form the backbone of reliable financial management in a Danish ApS and make later audits, financing rounds or due diligence processes significantly easier.

Create a Basic Accounting System and Choose Appropriate Accounting Software

From the very first day of your new ApS, you are required to keep orderly and documented accounts in accordance with the Danish Bookkeeping Act and the Financial Statements Act. A simple but well-structured accounting setup will help you stay compliant with SKAT, avoid fines and always know how much liquidity you really have available.

Start by defining how you will collect and store all vouchers: supplier invoices, sales invoices, bank statements, contracts and payroll documentation. In Denmark, you may keep your bookkeeping fully digital, but you must ensure secure storage and easy retrieval for at least five years. It is good practice to create clear folders (physical or digital) for purchases, sales, bank, payroll and other financial documents and to establish a fixed routine for how and when documents are processed.

Next, set up a basic chart of accounts that matches a typical Danish ApS. At a minimum, you should separate:

• Operating income (e.g. sales of goods and services, other operating income)
• Operating costs (e.g. cost of goods sold, subcontractors, rent, marketing, IT, travel, car expenses)
• Staff costs (salaries, holiday pay, ATP, pension, social contributions, A-skat and AM-bidrag)
• Financial items (interest income and expenses, bank fees, currency differences)
• Balance sheet items (equity, share capital, bank accounts, VAT payable/receivable, trade receivables and payables, loans, fixed assets)

Make sure your chart of accounts allows you to clearly distinguish between private and business expenses and between deductible and non-deductible costs. This will be important when calculating taxable income and corporate tax (currently 22% for Danish companies). It will also make it easier to prepare the annual report and submit the corporate tax return to SKAT.

When choosing accounting software, focus on systems that are widely used in Denmark and integrate well with Danish banks and public systems. Modern cloud solutions allow you to connect your business bank account so that transactions are imported automatically, reducing manual work and the risk of errors. Look for functions such as automatic bank reconciliation, digital storage of vouchers, invoicing in Danish and English, support for Danish VAT rules and the possibility to export data for your accountant or auditor.

For most small and medium-sized ApS companies, a cloud-based solution is preferable to spreadsheets. It simplifies ongoing bookkeeping, supports automatic calculation of Danish VAT (moms) and helps you prepare the periodic VAT returns that must be submitted to SKAT within the applicable deadlines. The system should allow you to handle both 25% standard VAT and special cases such as VAT-exempt turnover, reverse charge and EU trade, if relevant for your business model.

Before you start using the software, define internal procedures for how invoices are approved, who can make payments from the company bank account and how often bookkeeping is updated. Many Danish companies choose to record transactions at least once a week and to reconcile the bank account every month. Clear routines reduce the risk of missing supplier payments, incorrect VAT reporting or liquidity problems.

Finally, ensure that your accounting setup is aligned with your future reporting needs. Even if your ApS is small at the beginning, you may later need more detailed cost breakdowns, project accounting or department reporting. It is therefore wise to choose software that can grow with the company and that supports the preparation of annual financial statements in a format accepted by the Danish Business Authority. A well-designed accounting system from the outset will save time and money and make it much easier to work efficiently with your external accountant or auditor.

Define Management Responsibilities and Document Internal Company Policies

Clear management responsibilities and well-documented internal policies are essential for a new ApS in Denmark. They reduce personal risk for directors, support compliance with Danish company law and tax rules, and make day-to-day decision-making faster and more transparent.

Clarify the Role of Management in an ApS

In a Danish ApS, the management structure normally consists of a management board (executive management) and, if chosen, a board of directors or supervisory board. From the outset, you should clearly define:

• Who is responsible for daily operations and signing contracts
• Who is responsible for bookkeeping, VAT (moms), payroll and reporting to the Danish Tax Agency (Skattestyrelsen)
• Who approves budgets, investments and larger expenses
• Who represents the company towards banks, authorities and key suppliers

These responsibilities should be aligned with the company’s articles of association and registered signatory rules with the Danish Business Authority (Erhvervsstyrelsen). Make sure that any changes in management or signing rights are promptly updated in the official register.

Document Internal Decision-Making and Approval Rules

To avoid misunderstandings and reduce the risk of non-compliance, establish written internal rules that specify:

• Approval limits for purchases and contracts (for example, when a manager may approve alone and when board approval is required)
• Who can approve salary changes, bonuses and hiring of new employees
• Who is responsible for approving and submitting VAT returns, tax returns and annual reports
• How often management meets and how decisions are recorded in minutes

These rules should be practical and adapted to the size of the company. Even in a small owner-managed ApS, written procedures help demonstrate that the company is run in a responsible and professional manner, which is important in case of a tax audit, bank review or dispute between owners.

Establish Basic Compliance and Accounting Policies

Management is responsible for ensuring that the ApS complies with Danish accounting and tax legislation. At a minimum, you should document:

• Which accounting principles you follow (for example, Danish Financial Statements Act class B rules)
• How you handle revenue recognition, expenses, depreciation and provisions
• How you store and archive accounting records and vouchers (including digital storage) for the required retention period
• Who checks and reconciles bank accounts, customer receivables and supplier payables

Internal controls do not have to be complicated, but there should be a clear separation between those who approve payments and those who perform bookkeeping, where possible. This reduces the risk of errors and fraud and supports reliable financial reporting.

Define Policies for Salaries, Benefits and Reimbursements

If the ApS has employees or pays salary to owners working in the company, management should set transparent rules for:

• Salary levels, bonus criteria and approval of variable pay
• Taxable and tax-free benefits, such as company car, phone or internet
• Travel and expense reimbursements, including documentation requirements
• Use of company funds and corporate cards

These policies help ensure correct withholding of A-tax and labour market contributions (AM-bidrag), correct reporting via eIndkomst and proper documentation in case of control from Skattestyrelsen. They also reduce the risk of unintentional taxable benefits being overlooked.

Prepare Basic HR and Workplace Policies

Even a small ApS benefits from simple written policies that regulate the relationship between the company and its employees. Management should consider documenting:

• Working hours, overtime rules and flexible work arrangements
• Holiday and leave rules in line with the Danish Holiday Act
• Rules for sickness absence and reporting
• Use of IT systems, email, internet and personal data
• Confidentiality and handling of business-sensitive information

These policies should be consistent with Danish employment law and any applicable collective agreements. Clear rules reduce the risk of disputes and support a stable working environment.

Implement Data Protection and Confidentiality Procedures

If the company processes personal data, management must ensure compliance with GDPR and the Danish Data Protection Act. At a minimum, you should:

• Identify which personal data you collect and for what purpose
• Define who has access to which data and on what basis
• Describe how data is stored, protected and deleted
• Ensure that data processing agreements are in place with external providers

These procedures protect both the company and its customers or employees and reduce the risk of fines or reputational damage in case of data breaches.

Keep Policies Updated and Communicated

Internal company policies are only effective if they are known and followed. Management should ensure that:

• Policies are easily accessible to relevant employees and owners
• New employees are introduced to key rules during onboarding
• Policies are reviewed regularly and updated when legislation, business activities or organisation change
• Important decisions and changes are documented in management or board minutes

By defining management responsibilities and documenting internal company policies early, your ApS builds a solid foundation for compliant, transparent and efficient operations in Denmark. This also makes cooperation with your accountant, bank and authorities significantly easier as the company grows.

Arrange Statutory Insurance and Assess Relevant Business Insurance Needs

Once your ApS is registered, you must ensure that the company has the legally required insurance coverage and that you have assessed additional business risks. In Denmark, there is no single “company insurance package” that fits everyone, but some insurances are mandatory by law, while others are strongly recommended to protect your capital, management and employees.

Identify which insurances are mandatory for your ApS

The first step is to clarify which statutory insurances apply to your specific business model. In most cases, you should consider at least the following:

• Workers’ compensation insurance (arbejdsskadeforsikring)
  If your ApS has employees, you are legally required to take out workers’ compensation insurance with an approved insurance company. This applies from the first employee, including part‑time and temporary staff. The insurance must cover:
  • Occupational injuries and accidents occurring during work
  • Occupational diseases recognised under Danish law
  The premium depends on your industry, payroll and risk profile. Failure to have this insurance can lead to fines and liability for compensation payments.
• Industrial injury contributions via ATP
  In addition to the private workers’ compensation insurance, you must register with ATP and pay statutory contributions for occupational injury (for example via Arbejdsmarkedets Erhvervssikring). This is handled through your payroll setup and is mandatory for most employers.
• Motor third‑party liability insurance
  If the company owns or leases vehicles registered in the company’s name, you must have third‑party liability insurance for each vehicle. This covers personal injury and property damage caused to others. You can add optional casco coverage for damage to the company’s own vehicle.

Key voluntary insurances that are often essential

Beyond the statutory minimum, most ApS companies should consider additional business insurances. These are not legally required, but in practice they protect your equity and reduce personal risk for management and owners.

• General liability insurance (erhvervsansvarsforsikring)
  Covers personal injury and property damage unintentionally caused to third parties in connection with your business activities. This is particularly important if you visit customers, receive customers at your premises, or work on client sites.
• Professional indemnity insurance (erhvervs- og rådgiveransvar)
  Relevant for consultants, IT developers, accountants, architects, engineers and other advisory professions. It covers financial loss suffered by clients due to professional errors, negligence or omissions. Many B2B contracts and public tenders in Denmark require proof of such coverage with a specified minimum sum insured.
• Directors’ and Officers’ liability insurance (D&O)
  Protects members of the management board and board of directors against personal financial liability claims related to their management of the company. In an ApS, management can be held personally liable in cases of gross negligence or breach of duty, so D&O insurance is often recommended even for smaller companies.
• Business interruption insurance
  Can cover lost gross profit and fixed costs if your operations are interrupted due to an insured event (for example fire, water damage or major IT breakdown). This helps secure liquidity and the ability to pay salaries and suppliers during downtime.
• Property and contents insurance
  Covers buildings you own, as well as inventory, equipment, IT hardware and stock. For many ApS companies, the main assets are computers and specialised equipment; a tailored contents policy ensures these are insured at realistic replacement values.
• Cyber and data breach insurance
  Increasingly relevant for companies that store customer data or rely on cloud systems. Coverage can include costs for IT forensics, data recovery, legal assistance, notification to affected customers, and potential liability claims following a data breach.
• Legal expenses insurance (retshjælpsforsikring)
  Helps cover legal costs in certain types of disputes, for example contract disputes with customers or suppliers. Often sold as an add‑on to general liability or property insurance.

Assess your risk profile and coverage level

Before choosing specific policies, map your company’s risk profile. Consider:

• Number of employees and whether they work in office, production, construction or high‑risk environments
• Whether you handle client data, intellectual property or large financial transactions
• Whether you provide advisory services where errors can cause financial loss
• Value of equipment, inventory and any company‑owned vehicles
• Dependence on key suppliers, premises or IT systems

For each risk, decide whether you will:

• Eliminate or reduce the risk through internal procedures and safety measures
• Accept the risk and cover potential losses with company equity
• Transfer the risk to an insurance company through appropriate coverage

Practical steps to implement insurance for your new ApS

To ensure your insurance setup supports both compliance and financial stability, follow these steps:

1. Register as an employer with the relevant authorities and confirm your obligation to take out workers’ compensation insurance from the first employee.
2. Contact at least two to three Danish insurance providers or brokers and request offers based on your specific industry, expected turnover, payroll and assets.
3. Compare coverage limits, deductibles and exclusions carefully. Pay particular attention to:
   • Maximum sums insured for liability and professional indemnity
   • Waiting periods and coverage periods for business interruption
   • Geographical coverage (Denmark, EU/EEA or worldwide)
4. Ensure that policyholder information (CVR number, company name and address) matches your registration with the Danish Business Authority to avoid disputes in case of a claim.
5. Implement simple internal routines: store policies centrally, set calendar reminders for renewal dates and review coverage annually when your turnover, staff or activities change.

By arranging the statutory insurances and consciously assessing additional business insurance needs early in the life of your ApS, you reduce the risk that a single accident, claim or interruption will undermine your company’s equity and long‑term growth plans.

Review and File the Founding Documents and Ownership Structure with the Danish Business Authority

Once your ApS has been registered, it is essential to review all founding documents and ensure that the ownership structure is correctly filed and up to date with the Danish Business Authority (Erhvervsstyrelsen). Proper documentation is not only a legal requirement, but also a prerequisite for opening a corporate bank account, registering for VAT and employers’ duties, and avoiding future disputes between shareholders.

Key founding documents for a Danish ApS

For a standard Danish private limited company (ApS), you should verify at minimum the following documents:

• Memorandum of association (stiftelsesdokument)
• Articles of association (vedtægter)
• Shareholders’ register (ejerbog)
• Capital contribution documentation (e.g. bank confirmation or auditor’s statement for non-cash contributions)
• Management appointments (board of directors and/or executive management)

The minimum share capital for an ApS is currently DKK 40,000. Make sure that the capital amount, type of contribution (cash or non-cash), and any special rights attached to shares are clearly reflected in the founding documents and match what has been reported to the Danish Business Authority.

Checking the registered information in CVR

After incorporation, your company is assigned a CVR number and a public company profile in the Central Business Register (CVR). You should verify that the information registered in CVR corresponds exactly to your founding documents, including:

• Company name and any secondary names
• Registered office address in Denmark
• Company purpose (formål) as stated in the articles of association
• Share capital (nominal amount and currency, typically DKK)
• Management structure and names of directors and executive officers
• Any registered beneficial owners (reelle ejere)

If you identify discrepancies, they must be corrected by filing an update with the Danish Business Authority via the online self-service solution on Virk.dk. Certain changes, such as amendments to the articles of association, require a formal shareholders’ resolution and, in some cases, assistance from a lawyer or accountant.

Registering the ownership structure and beneficial owners

Danish companies are required to register both legal owners (ejerforhold) and beneficial owners (reelle ejere) with the Danish Business Authority. This applies to ApS companies regardless of size or activity level.

As a rule of thumb, a beneficial owner is a natural person who directly or indirectly owns or controls more than 25% of the shares or voting rights, or otherwise exercises controlling influence over the company. You must register, for each beneficial owner:

• Full name and CPR number (or date of birth and foreign ID if no CPR)
• Country of residence and nationality
• Type and extent of ownership or control (e.g. 30% of shares and votes)

If no individual meets the criteria for beneficial ownership, you must register the members of the management (e.g. directors) as “beneficial owners” by default, indicating that no actual beneficial owner can be identified. This is still a formal registration requirement and cannot be omitted.

Deadlines and ongoing update obligations

The registration of beneficial owners and ownership structure must be completed shortly after incorporation and before the company starts normal operations such as opening a bank account or entering into significant contracts. Banks and other financial institutions are required to check that beneficial owners are correctly registered before establishing a business relationship.

You are also obliged to keep the information up to date. Changes that trigger an update include:

• Transfer of shares that changes a person’s ownership above or below the 25% threshold
• New shareholders’ agreements that give control rights to a person who previously had none
• Changes in management if no beneficial owner can be identified
• Capital increases or reductions that affect the ownership percentages

Updates must be filed without undue delay once the company becomes aware of the change. Failing to register or update beneficial ownership information can lead to enforcement measures, including fines and, in serious cases, compulsory dissolution proceedings.

Internal documentation: shareholders’ register and agreements

In addition to the information filed with the Danish Business Authority, you must maintain an internal shareholders’ register. This register should at least contain:

• Names and addresses of all shareholders
• CPR or CVR numbers (or foreign IDs)
• Number and class of shares held by each shareholder
• Date of acquisition and, where relevant, date of disposal

The shareholders’ register does not have to be filed publicly, but it must be kept up to date and available for inspection by authorities and, in some cases, by shareholders. If there is a shareholders’ agreement regulating voting rights, transfer restrictions, or special rights (e.g. preference shares), ensure that it is consistent with the articles of association and with what has been reported to the Danish Business Authority.

When to seek professional assistance

Although many filings can be made directly via Virk.dk, it is often advisable to involve a professional adviser when:

• There are multiple shareholders with different share classes or rights
• Ownership is held through holding companies or foreign entities
• You plan to issue warrants, convertible debt, or other complex instruments
• You are restructuring the group or transferring shares as part of a tax planning strategy

A Danish accountant or corporate services provider can help you review your founding documents, align them with your actual ownership structure, and ensure that all mandatory registrations with the Danish Business Authority are complete and compliant. This reduces the risk of later conflicts, tax issues, or problems with banks and investors.

Prepare a Cash Flow Plan and Budget for the First 12 Months of Operations

A clear cash flow plan and a realistic budget for the first 12 months are essential for any new ApS in Denmark. They help you ensure that the company can pay salaries, VAT (moms), corporate tax and suppliers on time, and that you do not run out of liquidity just when the business starts to grow.

Why a 12‑month cash flow plan is critical for a new ApS

In Denmark, new companies quickly face fixed payment deadlines: VAT returns, A‑tax and AM‑bidrag on salaries, corporate tax on account, and often rent and lease agreements. A 12‑month cash flow plan allows you to see, month by month, whether your bank balance will be sufficient to cover these obligations and when you may need additional financing.

For many new ApS companies, the first year includes:

• Irregular income and seasonal fluctuations
• High start‑up costs (equipment, marketing, advisory fees)
• Regular fixed costs (rent, subscriptions, insurance, accounting)
• Tax and VAT payments that do not follow the same rhythm as your income

Without a detailed plan, it is easy to underestimate how much liquidity is required to keep the company running safely through the first year.

Step 1: Estimate realistic revenue month by month

Start by preparing a conservative revenue forecast for each of the first 12 months. Base it on:

• Expected number of customers or projects per month
• Average price per product or service (excluding VAT)
• Expected start date of sales and realistic growth rate

For example, if you expect to invoice 10,000 DKK in month 1, 30,000 DKK in month 3 and 80,000 DKK per month from month 7, enter these amounts as net revenue (excluding 25% VAT) in your plan. Always create at least two scenarios: a base case and a more cautious “low” scenario, so you can see how sensitive your liquidity is to lower‑than‑expected sales.

Step 2: Map all fixed and variable costs

Next, list all costs that will occur during the first 12 months and assign them to specific months. Distinguish between:

• Fixed costs – for example office rent, software subscriptions, telephone and internet, insurance, accounting fees, leasing payments
• Variable costs – for example goods for resale, subcontractors, shipping, payment fees, marketing linked to sales volume

Include typical Danish cost items such as:

• Accounting or bookkeeping assistance (often from around 1,000–3,000 DKK per month for small companies, depending on volume and complexity)
• Mandatory insurance (for example workers’ compensation insurance if you have employees)
• IT systems and accounting software licences

Enter the costs in the month where the payment will actually leave the bank account, not when the invoice is received. This is crucial for a realistic cash flow overview.

Step 3: Include salary, A‑tax and AM‑bidrag

If your ApS will pay salaries, you must include both gross salaries and the associated Danish payroll taxes in your plan:

• Gross salary – the agreed salary before tax
• A‑tax – withheld income tax, paid to Skattestyrelsen
• AM‑bidrag – 8% labour market contribution, also withheld and paid to Skattestyrelsen

For example, if an employee has a gross salary of 30,000 DKK per month, you must calculate:

• 8% AM‑bidrag = 2,400 DKK
• A‑tax on the remaining amount (depending on the employee’s tax card)

The company pays the net salary to the employee and transfers A‑tax and AM‑bidrag to Skattestyrelsen, typically monthly. All three amounts must be included in your cash flow plan in the month they are paid out.

Step 4: Plan for VAT (moms) payments

Most new ApS companies are registered for VAT from the start. The standard VAT rate in Denmark is 25%. You must collect 25% VAT on your sales (output VAT) and can deduct VAT on most business purchases (input VAT), except for certain restricted areas such as passenger cars and some representation costs.

Newly registered companies are usually placed on quarterly VAT reporting. This means you must:

• Calculate VAT for each quarter (output VAT minus input VAT)
• Report and pay VAT to Skattestyrelsen by the applicable deadline after the end of the quarter

In your cash flow plan, you should therefore:

• Estimate the VAT payable for each quarter based on your revenue and costs
• Reserve liquidity every month so that the company can pay the full VAT amount on time

Remember that the VAT you collect from customers does not belong to the company – it is a liability to Skattestyrelsen. Many new ApS companies avoid liquidity problems by setting aside the VAT portion on a separate bank account as soon as they receive customer payments.

Step 5: Consider corporate tax (selskabsskat)

The corporate tax rate in Denmark is 22% of the taxable profit. In your first year, the timing of corporate tax payments depends on your expected result and Skattestyrelsen’s rules on on‑account payments.

Even if the first formal tax payment falls after the end of the first financial year, it is wise to:

• Estimate the expected taxable profit for the year
• Calculate 22% of this amount as an expected tax expense
• Set aside funds in your cash flow plan on a monthly or quarterly basis

This way, you avoid a situation where the company shows a profit on paper but lacks the liquidity to pay corporate tax when it becomes due.

Step 6: Build a simple 12‑month cash flow overview

Combine all the elements in a simple spreadsheet or accounting system. For each of the 12 months, list:

1. Opening bank balance
2. Expected cash inflows (customer payments, loans, equity injections)
3. Expected cash outflows (suppliers, salaries, rent, VAT, tax, interest, instalments)
4. Closing bank balance (opening balance + inflows − outflows)

Pay particular attention to months where the closing balance is close to zero or negative. These are the periods where you may need to:

• Negotiate better payment terms with suppliers
• Invoice customers earlier or shorten payment terms
• Postpone non‑essential investments
• Secure an overdraft facility or other financing in advance

Step 7: Prepare an operating budget for the first year

In addition to the cash flow plan, prepare an operating budget (profit and loss budget) for the first 12 months. This focuses on revenue and expenses in the period, regardless of when they are paid. It should include:

• Turnover (excluding VAT)
• Cost of goods sold and direct project costs
• Gross profit
• Operating expenses (salaries, rent, administration, marketing, depreciation)
• Operating profit before tax

The operating budget helps you assess whether the business model is profitable, while the cash flow plan shows whether the company can survive liquidity‑wise. Both are necessary for a healthy start.

Step 8: Update and use the plan actively

A cash flow plan and budget only create value if they are updated regularly. For a new ApS, it is recommended to:

• Compare actual figures with the budget every month
• Adjust the forecast for the remaining months based on real data
• Monitor key figures such as gross margin, fixed cost level and liquidity buffer

If you see that revenue is lower than expected or costs are higher, you can react early – for example by reducing costs, adjusting prices or seeking additional financing before liquidity becomes critical.

How a Danish accountant can support your planning

An experienced Danish accountant can help you:

• Set up a realistic 12‑month cash flow plan tailored to Danish VAT and tax rules
• Prepare an operating budget that matches your business model
• Identify upcoming VAT, payroll and tax payments and include them correctly in the plan
• Monitor results and adjust the plan as the company develops

With a well‑prepared cash flow plan and budget for the first 12 months, your new ApS gains a solid financial foundation and a clear overview of the company’s obligations and opportunities in the Danish market.

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