Can I Start a Business in Denmark Without a Danish Address?

Can I Start a Business in Denmark Without a Danish Address?

A common concern for international founders is whether you need a physical presence in Denmark to start a company here. The good news: you do not need to live in Denmark to open an ApS (company). Many foreign entrepreneurs successfully run Danish companies from abroad. However, there are requirements for a local address and some pitfalls to avoid. Let’s clarify what is needed regarding addresses, and explain the difference between CPR and CVR – two key acronyms you’ll encounter.

You Can Start an ApS from Abroad

Denmark allows non-residents to establish businesses. You can form an ApS without a Danish personal ID number (CPR) and without residing in Denmark, as long as you fulfill the registration requirements. Your company will still need a registered office address in Denmark. This doesn’t mean you have to rent a full office or apartment – a virtual office service or a friend’s address (with permission) can suffice. The address just needs to be a real physical location in Denmark where official mail can reach you.

For example, many startups use services that provide a Copenhagen business address and mail handling. These services ensure that any letters from authorities (like the Danish Business Authority or SKAT) are received and forwarded to you. Remember, a P.O. Box alone is not acceptable as the registered address. If you do use a P.O. Box, it must be in addition to a physical street address (e.g., P.O. Box 123 at Some Street 1, 1000 Copenhagen). The authorities want to know where the business is actually based.

In summary, living in Denmark is not a prerequisite for starting an ApS, but having a Danish address for the company is mandatory. Choose an address solution early, as you’ll need it when filling out the incorporation forms.

What About Sole Proprietorships?

If you’re thinking of a sole proprietorship instead of an ApS, the answer changes. A sole proprietorship is tied to you as an individual, and practically speaking, it’s only available to residents with a CPR number. To register a sole proprietorship (enkeltmandsvirksomhed) on Virk.dk, you must log in with a CPR-linked MitID. Non-residents without CPR cannot easily create a sole proprietorship in Denmark. So, if you don’t have a Danish address or CPR, an ApS is typically the way to go for doing business in Denmark. It’s more complex to set up initially, but it’s open to foreigners and offers the benefit of limited liability.

Understanding CPR vs. CVR

These acronyms are similar and easy to mix up:

• CPR (Central Person Register) Number: This is the Danish personal identification number for individuals. It’s akin to a social security number. A CPR is issued to people who reside in Denmark (citizens and residents). It’s used for everything from opening a bank account to seeing the doctor. If you move to Denmark or work there long-term, you’d get a CPR. For business, CPR is relevant because digital IDs (MitID/NemID) and certain registrations require one. If you don’t have a CPR, you’ll use alternative methods to interact with Danish authorities (for example, obtaining a temporary tax number or using foreign eID for login).
• CVR (Central Business Register) Number: This is the identification number for companies and businesses. When you register any business in Denmark – whether it’s an ApS, a sole proprietorship, or a partnership – you receive a CVR number. It’s an 8-digit number used on invoices, websites, and official documents to identify the company. Think of it as the business’s social security number. The CVR number is public and can be looked up on the CVR register to see basic info about the company.

In short, CPR is for people, CVR is for companies. You as a foreign founder might not have a CPR, but your company will always get a CVR. You can run a Danish company with a CVR without having a CPR, by using other identification means for yourself when needed.

Common Mistakes to Avoid

When starting a Danish business from abroad, watch out for these pitfalls:

• Using an Invalid Address: Don’t try to register your company with a non-Danish address or a mailbox service abroad. The registration will be rejected. Also, ensure whatever address you use is aware of your company name. If you use a friend’s office or a virtual office, make sure your company name is on the mailbox or they know to accept mail for you. Important letters might be sent by physical mail or to your Digital Post – you don’t want them returned undeliverable.
• Ignoring Digital Post and Communication: Just because you’re not physically in Denmark doesn’t mean you can ignore Danish mail. Set up your Digital Post e-box as soon as you have your CVR, and check it regularly (or have it forward to an email you monitor). Many communications from authorities will come digitally. For anything sent to the physical registered address, have a plan – either forwarding service or someone scanning and emailing you.
• Not Obtaining a NemID/MitID: As a foreign company owner, you might skip getting a Danish e-ID, but it’s very useful. With a corporate MitID (or NemID employee signature tied to the CVR), you can log into tax systems, NemKonto, banking, etc. If you qualify for a CPR (say you spend enough time in Denmark), get one and set up MitID. If not, consider applying for a NemID employee certificate for your company – it’s a digital signature the Business Authority can issue to a foreign director so you can access online services. This requires some paperwork but is worth it to manage things remotely.
• Forgetting Local Requirements: Even abroad, you must comply with Danish rules. For example, an ApS must file annual accounts with the Danish Business Authority. If you’re abroad, you might overlook Danish deadlines. Always mark your calendar for key filings (annual report, annual tax, VAT quarterly deadlines, etc.). Hiring a local accountant or service can help keep you in compliance.
• Tax Residence Considerations: This is more advanced, but be mindful of where your company is managed from. If you run everything from outside Denmark, and have no presence or board in Denmark, there could be implications about where the company is considered tax resident. Generally, a Danish-registered ApS is taxed in Denmark, but if you live elsewhere, talk to a tax advisor about any double taxation treaties – you may need to register the company as an “effectively managed” entity abroad. This usually isn’t an issue for small startups, but it’s good to be aware as you grow.

Starting without a Danish address is entirely possible – just set up the necessary infrastructure. Many people around the world run their Danish companies from abroad by leveraging virtual addresses, online banking, and digital tools.

If you’re unsure about any step, it’s wise to get local help to avoid mistakes that could cost time and money.

Wondering how to navigate Danish business formalities from overseas? We assist founders worldwide in establishing their Danish companies. Get in touch with us for expert help on setting up an address, registering your ApS, or handling compliance remotely. You can also book a free consultation to discuss your plans and questions about starting up in Denmark.