Open a Software Company in Denmark

Updated on Tuesday 24th January 2023

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Denmark has an evolving software industry, with many international companies like Microsoft or IBM having opened centers in cities like Copenhagen or Aalborg. Danish IT entrepreneurs benefit not only from good business conditions but they have also attracted the attention of foreign investors, making it easier to secure capital from local and foreign funds.

Investors can open a software company in Denmark by following the steps needed to register a new legal entity. Foreign entrepreneurs, as well as first-time investors, can request the services offered by our company formation lawyers in Denmark.

Copenhagen is one city that has adopted the development of the software industry and it is the country’s primary investment hub for financial technology – with the financial industry being one that has had a positive reaction to the IT developments and has implemented the solutions into its core sectors.

Danish software companies

Software development companies can offer a wide range of services and the selected ones will depend on the area in which the corporation wishes to focus. Below are just a few of these key areas in which a Danish software company can specialize:

Mobile applications: a highly popular software development field, programmers will develop, test and optimize mobile applications as per the client’s needs.
Desktop applications: services that target the development of simple and cross-platform desktop apps for companies that are in need of these products.
Software testing: software testing is an important part of the process of delivering a highly functioning software or app.
Financial solutions: software for mobile payments, banking solutions as well as insurance or e-wallet apps; can be put under the broader fintech category.
UI and UX development: the UX designers work in order to achieve an overall high user experience level while UI design is concerned with the user interface scheme; both aspects are very important when developing a product.

Some companies can also be involved in the creation of blockchain solutions, social media apps, and video chat development and maintenance. Software development can be the primary function of the company but the types of services can be diverse.

Software start-ups in Denmark

Software companies in Denmark can use crowdfunding campaigns in order to launch their product. A team of developers who has an interesting product concept but cannot support the entirety of the costs themselves can fund their innovative solution through a campaign that will help start the company. This is not a new concept and many start-ups in Denmark have already used the combined resources obtained from a pool of investors in order to launch their app or software.

Our team of company formation lawyers in Denmark can help start-up owners who are just calculating the costs for opening a business. We can help you identify the available financing options and, when needed, provide the needed legal counseling so that you may determine the most suitable way to start the software business.

Companies in Denmark are incorporated according to several principles. Below, our Danish lawyers describe the steps needed to open a software company:

Choose the legal form: for software companies, the Aps is the preferred business form; it is the Danish equivalent of the private limited liability company and offers a convenient degree of investor protection.
Pre-registration: included here are choosing the business name and drawing up the company’s Articles of Association.
Register the business: this is done with the Danish Business Authority and after this step, the new company will receive its central company registration number or the CVR; the registration should take place within 14 days after the company documents have been signed.
Register with the tax authorities: the next step is to register the company with the Danish Customs and Tax Administration or SKAT; a separate registration is needed for VAT purposes as well as for payroll tax.

The steps described above are only the general ones and investors can seek the needed assistance from our team of company formation lawyers in Denmark. Once these steps are all complete, our attorneys can also help you conclude the employment contracts – hiring talented programmers and developers will be key for running a successful software business.

Software companies need to remain compliant with the annual tax payment and reporting requirements, as well as make sure that they submit the annual financial statements. Our Danish accountants can help you observe all the current tax and reporting requirements for your type of business. We offer complete bookkeeping, accounting and audit services to companies across all industries.

Denmark offers many business advantages both to local and to foreign entrepreneurs looking to start a software company. You can always contact our law firm in Denmark for complete details about the laws and regulations applicable to these types of businesses.