Just as any other European country, Denmark enables individuals who can be citizens or residents in the country to open various types of businesses. Even if the limited liability company is the most employed business and also one of the easiest types of structures to register in Denmark, there are also other forms of starting one’s own venture. One of them is the sole proprietorship which is also covered by the Commercial Code in Denmark.
Foreign citizens who want to register as sole traders can rely on our law firm in Denmark.
Foreign citizens must have a residence and a work permit in order to be allowed to register a sole proprietorship in Denmark. Following that, they must obtain a NemID which is a digital signature and which must be obtained before the company registration is completed. This is because it will allow one to log onto the Companies Registrar’s site and file the information related to the opening of the sole proprietorship.
After the two steps mentioned above have been completed, the future business owner must enter the Trade Register’s website and select the sole proprietorship as a business form, offer information about him or herself, to enter the code specific for the activity which will be carried out, register for taxation and social security purpose. Following that, the tax authorities will issue the Danish sole trader a VAT identification number known as a CVR number.
Our Danish lawyers can advise on the registration procedure of a sole proprietorship.
Foreign citizens who register as sole traders in Denmark should know that certain licenses are necessary depending on the activity they undertake. Also, they will be fully responsible for the company’s debts and obligations, including with their personal goods. However, if they want to avoid that, once the business has become stable and profitable, it can be changed into a limited liability company without any charges from the authorities.
For assistance in setting up a sole proprietorship or any other type of company, do not hesitate to contact our lawyers in Denmark.
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