Opening a corporate bank account in Denmark, especially for new companies, can be a complicated process due to the regulations in place to prevent money laundering, which banks are required to adhere to. To expedite the process of opening a bank account, it may be beneficial to prepare a business plan and budget for the bank. This can help demonstrate the legitimacy of the business and its financial situation to the bank, potentially making the account setup process smoother.
A recommended set of documents for preparation includes a business plan, a 12-month profit and loss budget, an annual balance sheet budget, and a 12-month cash flow budget. Additionally, creating a website for your company can help present a professional image to the bank.
To open a bank account in Denmark, it is important to choose a bank carefully. While banks like Nordea, Danske Bank and Nykredit are common choices, some banks like Jyske Bank may not be worth considering due to the high additional cost of an annual audit required by the bank. This is because Jyske Bank and some other banks now require a company audit to open a bank account. It's worth noting that an annual audit is not mandatory for smaller companies in Denmark. Additionally, the cost of setting up a bank account can vary, with Nordea and Danske Bank usually charging around DKK 4,000-5,000, while the cost of an audit can range from DKK 20,000-50,000+VAT per year, which is an additional cost to meet the bank's requirement.
If you find that all banks have rejected your application for a business bank account, it can be a significant obstacle for your business as a bank account is essential to receive payments from customers, pay suppliers, and conduct other financial transactions. In general, it's common for Danish banks to open a company bank account after 3-6 months, when the first financial report can be provided. While opening a new corporate bank account is possible, it may require patience in many cases.
If you are unable to open a bank account in Denmark, one alternative option is to use Revolut, which is not a Danish bank but offers online banking services. With Revolut, you can open a corporate bank account in various currencies, including DKK, EUR, and USD. However, transferring money to a bank account in Denmark will require an IBAN/SWIFT transfer, which may cause suspicion among some B2C customers. Despite this, Revolut can be a viable solution for conducting business until a Danish bank account can be obtained. Revolut also provides a MasterCard for paying business expenses and it is possible to use Revolut to finalize payment solutions for a website.
In accordance with anti-money laundering regulations, it is typically necessary for a business owner or director to have a personal meeting with the bank. This is because the bank needs to verify the identity of the account holder, which may require additional information or documentation beyond what can be provided through online or remote means.