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4 Crucial Actions to Follow Once Establishing a New APS Enterprise

1st STEP: APPLY FOR NEMID

To access various government and online banking websites in Denmark, you need a digital signature called a NemID. You can apply for one on the https://www.medarbejdersignatur.dk website.

2nd STEP: CREATE A MAILBOX ON „E-BOXES”

Government institutions and some private companies send emails to a digital mailbox called "e-boxes." You must create a company e-Box with your NemID to access it.

3rd STEP: ASSIGN „NEMKONTO”

You must designate your company bank account as a NemKonto to receive reimbursements from the government for taxes and VAT. To check if your bank account has NemKonto status, go to https://www.nemkonto.dk/ or contact your bank.

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

After creating a new account for your Danish private limited company and obtaining a NemKonto, your lawyer can transfer the required initial capital of DKK 20,000 to your company’s bank account. If you face issues opening a traditional account, using Revolut is recommended.

Register the company for VAT (MOMS) and employer obligations with SKAT

Once your ApS is registered with the Danish Business Authority, one of the first formal obligations is to register the company for VAT (MOMS) and, where relevant, as an employer with the Danish Tax Agency (Skattestyrelsen, formerly SKAT). Both registrations are handled digitally via the Danish Business Authority’s online system and TastSelv Erhverv.

In Denmark, most companies that sell goods or services on a regular basis must register for VAT. You are required to register if your taxable turnover in a 12‑month period exceeds, or is expected to exceed, DKK 50,000. Voluntary VAT registration below this threshold is possible and often recommended if you have significant VAT‑bearing costs, as it allows you to deduct input VAT.

The standard VAT rate in Denmark is 25% and applies to the vast majority of goods and services. There are no reduced VAT rates, but certain activities are exempt (for example some financial services, health care and certain educational services). If your ApS operates in an exempt area, you may not be able to deduct input VAT on purchases related to those exempt activities, which has a direct impact on pricing and profitability.

When registering your ApS for VAT, you must indicate the expected annual turnover and the nature of your business activities. This information determines how often you must file VAT returns. New and smaller companies are typically placed on quarterly reporting, while larger businesses may be required to report monthly. VAT returns and payments are submitted electronically via TastSelv Erhverv, and late filing or late payment can lead to interest and surcharges.

If your ApS will have employees, you must also register as an employer before you pay the first salary. Employer registration covers several obligations: withholding A‑tax (income tax) and AM‑bidrag (labour market contribution) from employees’ salaries, reporting payroll information to the income register (eIndkomst), and paying the withheld amounts to the tax authorities on time. The AM‑bidrag rate is 8% of the gross salary, and it is withheld together with A‑tax based on each employee’s tax card.

In addition, Danish employers must pay certain mandatory labour market contributions and social costs, such as ATP (the Danish labour market supplementary pension) and, depending on the sector, possible contributions to holiday pay schemes and occupational injury insurance. These obligations are separate from VAT and must be handled through the relevant authorities and schemes, but the initial employer registration with the tax authorities is what enables you to run payroll legally.

Correct and timely registration for VAT and employer obligations is crucial for a new ApS. It ensures that your invoices are compliant, your payroll is lawful, and your company avoids unnecessary penalties or interest. Many businesses choose to involve a Danish accounting firm at this stage to set up the registrations, configure the reporting in TastSelv Erhverv and establish routines that keep the company fully compliant from the very beginning.

Set up mandatory digital reporting for tax, VAT and annual accounts (TastSelv Erhverv)

Once your ApS has been registered, you must activate digital access to the Danish Tax Agency’s online system, TastSelv Erhverv. This portal is used for all mandatory digital reporting related to tax, VAT (MOMS), payroll taxes and, in many cases, submissions connected to your annual accounts. Without proper setup, you risk missing deadlines and incurring penalties.

Access to TastSelv Erhverv is granted via MitID Erhverv. The company’s management must first ensure that the legal representative (typically the director) has a personal MitID and is registered as a signatory in the Danish Business Authority’s system. Afterwards, you can create a MitID Erhverv profile for the company and assign roles and permissions to employees or your external accountant, so they can submit reports and view tax information on your behalf.

In TastSelv Erhverv you register the company for VAT if your annual turnover exceeds DKK 50,000 within a 12‑month period. Most new ApS companies that plan to trade from the start choose to register for VAT immediately. Depending on your expected revenue, SKAT will assign you a VAT reporting frequency: monthly, quarterly or half‑yearly. VAT returns and payments must be submitted no later than the statutory deadlines after the end of each period, and late filing can result in interest and surcharges.

If your ApS will have employees, you must also use TastSelv Erhverv to register as an employer. This enables you to report A‑tax (withholding tax), AM‑bidrag (labour market contribution of 8%) and other payroll‑related obligations through the eIncome (eIndkomst) system. Reporting is usually done monthly and must match the salary payments made to employees. Failure to report or pay on time can lead to penalties and collection measures.

The portal also provides an overview of your company’s tax account, including outstanding balances, payment deadlines and refunds. Corporate income tax for ApS companies is currently 22% of taxable profit. Advance tax (B‑tax or on‑account payments) and final tax settlements are all handled digitally, and all correspondence from SKAT is delivered electronically through your company’s digital mailbox, not by regular post.

Although annual accounts are formally filed with the Danish Business Authority (Erhvervsstyrelsen), the figures in your financial statements must correspond to the information reported to SKAT through TastSelv Erhverv. For many companies, tax calculations, loss carry‑forwards and adjustments are prepared in accounting or audit software and then submitted electronically to SKAT via the portal or integrated solutions.

To ensure smooth compliance, it is advisable to set up internal routines for logging into TastSelv Erhverv regularly, checking messages from SKAT and reconciling your bookkeeping with the balances shown in the tax account. Many ApS companies grant their accountant or bookkeeper direct TastSelv Erhverv access with limited rights, so that professional advisers can handle VAT, payroll and tax reporting while management retains full control and responsibility.

Establish payroll setup and register employees with SKAT and ATP

Before you pay the first salary from your new ApS, you must set up a compliant payroll system and register as an employer with the Danish authorities. Proper payroll setup is essential to calculate and report income tax (A‑skat), labour market contributions (AM‑bidrag), holiday pay and mandatory pension correctly, and to avoid penalties from SKAT and ATP.

Register the company as an employer with SKAT

Once you know you will have employees, register the company as an employer in TastSelv Erhverv with the Danish Tax Agency (SKAT). This registration links your CVR number to your role as an employer and enables you to report payroll data and pay withheld taxes and contributions.

For each employee, you must report and withhold:

All payroll data must be reported monthly via the eIncome (eIndkomst) system, typically by the 10th of the following month, and the withheld amounts must be paid to SKAT by the statutory deadlines.

Set up ATP and other statutory labour market contributions

In Denmark, most employees must be covered by ATP Livslang Pension (the statutory labour market supplementary pension). As an employer, you are responsible for registering employees and paying both the employer and employee share.

ATP contributions are fixed amounts depending on working hours. For a full‑time employee (37 hours per week), the quarterly ATP contribution is split approximately as follows:

You must report ATP contributions together with other labour market contributions through the relevant reporting channels, usually integrated in your payroll system. Make sure you also assess whether your employees are covered by collective agreements or industry schemes that require additional pension or insurance contributions.

Choose a compliant payroll system

To handle Danish payroll correctly, use payroll software that supports:

Most Danish payroll solutions integrate with accounting software, so salary costs, taxes and social contributions are posted automatically to your bookkeeping. This reduces errors and ensures that your financial statements reflect payroll obligations correctly.

Register and onboard employees correctly

Before you run the first payroll, collect the necessary data from each employee:

Every employee must have a valid tax card in Denmark. If you pay salary without a tax card, you are obliged to withhold tax at a significantly higher standard rate. Ensure that foreign employees are properly registered with the Danish authorities and have obtained a CPR number and tax card before employment starts.

Handle holiday pay and other employee rights

Under the Danish Holiday Act, employees earn 2.08 days of paid holiday per month of employment, corresponding to 25 days per year for full‑time work. You must choose and implement the correct holiday scheme:

Your payroll setup must calculate and record holiday pay obligations accurately, including holiday supplements and any special rules in collective agreements. This is crucial both for employee rights and for correct recognition of provisions in your accounts.

Ensure timely reporting and payments

Once your payroll system is in place, establish a fixed monthly routine:

A well‑structured payroll setup from the start of your ApS minimises compliance risks, ensures that employees are paid correctly and on time, and gives you a clear overview of your total labour costs.

Arrange statutory insurance and occupational injury coverage for employees

In Denmark, employers are legally required to protect employees through statutory insurance and occupational injury coverage. When you establish a new ApS and start hiring, you must ensure that all mandatory insurances are in place before or at the time employees begin working.

The core element is occupational injury insurance (arbejdsskadeforsikring). This insurance must cover all employees for both work-related accidents and occupational diseases. It applies to full-time, part-time and temporary staff, and in many cases also to paid board members and working owners who receive salary. Failure to take out this insurance can result in fines and liability for compensation payments that would otherwise be covered by the insurer.

Occupational injury insurance is purchased from a private insurance company, but it must comply with the Danish Workers’ Compensation Act. Premiums depend on the company’s industry, risk level and payroll. High-risk sectors such as construction, transport or manufacturing typically pay higher annual premiums than low-risk office-based businesses. As a rule of thumb, you should expect the premium to be calculated as a percentage of the total annual salary costs, with different risk classes defined by the insurer.

In addition to occupational injury insurance, most Danish employers are also required to contribute to the Labour Market Occupational Disease Fund (Arbejdsmarkedets Erhvervssikring – AES). Contributions are typically charged via ATP and are based on the company’s industry code and number of employees. These contributions finance compensation for occupational diseases and are separate from your private insurance premium.

For many ApS companies, it is also strongly recommended – and in some sectors practically necessary – to take out employers’ liability insurance (erhvervs- og produktansvar / arbejdsgiveransvar). While occupational injury insurance covers statutory compensation to employees, employers’ liability insurance covers additional claims that employees or third parties may raise against the company, for example in connection with negligence or defective products.

Depending on your business model, you should also consider additional coverages that are common and often required by clients or landlords in Denmark, such as:

When arranging insurance, make sure that your company’s CVR number, industry code (branchekode), estimated annual payroll and number of employees are correctly registered with the insurer. Incorrect information can lead to underinsurance, higher backdated premiums or disputes in the event of a claim. Review your coverage at least once a year or whenever there are significant changes in staff numbers, turnover or business activities.

Finally, inform employees clearly about the existing occupational injury coverage and internal procedures in case of an accident. Establish written guidelines for reporting injuries, keeping deadlines and documentation requirements in line with Danish rules. A structured approach not only fulfils legal obligations but also reduces financial and operational risk for your new ApS.

Prepare internal bookkeeping procedures and choose accounting software compliant with Danish rules

From the first day your ApS is active, you must have clear bookkeeping routines that comply with the Danish Bookkeeping Act and the rules of the Danish Business Authority and SKAT. Proper internal procedures and the right accounting software will help you avoid fines, incorrect VAT (MOMS) reporting and problems during a tax audit.

Every Danish company is obliged to keep complete and traceable accounting records for at least 5 years. All transactions must be documented with vouchers (invoices, receipts, bank statements, contracts) and booked in a way that allows an auditor or SKAT to follow each entry from source document to financial statements and back again. If you use digital bookkeeping, data must be stored securely within the EU/EEA or in countries with an adequate data protection level and in line with GDPR.

Start by defining who in the company is responsible for daily bookkeeping, VAT returns, payroll entries and preparation of annual accounts. Describe step by step how you will handle incoming and outgoing invoices, bank reconciliations, cash payments, expense reimbursements, mileage, and director’s loans. Set fixed internal deadlines that are earlier than the official deadlines for VAT, tax and annual report filing, so you always have time to correct errors.

For VAT, your procedures must ensure that Danish MOMS is calculated correctly on sales and purchases, including reverse charge rules for services from abroad and intra‑EU trade. You also need routines for distinguishing between deductible and non‑deductible costs (for example representation, cars and mixed private/business expenses) and for documenting the business purpose of each expense. If your turnover exceeds the current thresholds for quarterly or monthly VAT reporting, your internal calendar must reflect the correct reporting frequency in TastSelv Erhverv.

When choosing accounting software, make sure it supports Danish language, Danish chart of accounts and direct integration with SKAT and the Danish Business Authority where possible. The system should allow you to submit VAT returns digitally, export files for annual accounts and cooperate smoothly with your accountant or auditor. Look for solutions that can connect to your Danish business bank account for automatic bank feeds, so that all transactions are imported and reconciled regularly.

Modern Danish‑compliant accounting systems typically include modules for e‑invoicing (including EAN invoices to public institutions), payroll integration, fixed asset registers and digital archiving of vouchers. This helps you meet the legal requirement for timely, accurate and traceable bookkeeping and reduces the risk of manual errors. Ensure that user access is restricted according to roles, with clear approval flows for payments and changes in master data, so that no single person can both approve and execute critical transactions without oversight.

Finally, document your bookkeeping policy in writing: which software you use, how often you book transactions, how you back up data, how you handle corrections and credit notes, and how you ensure segregation of duties in a small ApS. This written procedure will be valuable during audits, when changing staff or when cooperating with an external accounting firm, and it demonstrates that your company takes Danish accounting and tax compliance seriously from the very beginning.

Register for data protection (GDPR) obligations and set up secure data handling for clients and employees

As an accounting company in Denmark, you process large volumes of sensitive financial and personal data. This makes compliance with the General Data Protection Regulation (GDPR) and the Danish Data Protection Act a core legal obligation from the first day of operating your new ApS. Proper GDPR implementation is also a key trust factor for your clients, banks and authorities.

Start by identifying whether your company acts as a data controller, a data processor, or both. In most cases, a Danish accounting firm is a data controller for its own clients and employees, and a data processor when handling data on behalf of other businesses. This distinction determines which obligations apply and how you must document them.

You must map all categories of personal data you handle: identification data (CPR, CVR, addresses), payroll data, tax information, bank details and any special categories of data, such as health information in payroll documentation. For each processing activity, you need a clear legal basis, for example legal obligation under Danish bookkeeping and tax rules, performance of a contract with the client, or legitimate interest. Consent is generally reserved for specific, optional processing and must be documented and easy to withdraw.

Next, prepare and publish transparent privacy notices for clients, employees and other data subjects. These must explain what data you collect, for what purposes, on what legal basis, how long you store it, who you share it with (for example SKAT, banks, IT providers) and what rights data subjects have. You are required to inform about rights of access, rectification, erasure, restriction, data portability and objection, as well as the right to complain to the Danish Data Protection Agency (Datatilsynet).

If your accounting firm regularly and systematically processes financial data on behalf of many clients, you should assess whether you must appoint a Data Protection Officer (DPO) or at least designate a person internally responsible for GDPR compliance. Even when a DPO is not legally mandatory, having a named GDPR contact and written procedures significantly reduces the risk of breaches and fines.

Data processing agreements are essential. Whenever you use external IT providers, cloud services, payroll systems, document management platforms or external bookkeepers, you must sign written data processing agreements that meet GDPR requirements. These agreements must regulate security measures, confidentiality, sub-processors, data transfers outside the EU/EEA and deletion or return of data when cooperation ends. For any transfers to countries outside the EU/EEA, you must ensure valid transfer mechanisms, such as standard contractual clauses approved by the European Commission.

Secure data handling in daily operations is just as important as documentation. Implement strong access control to all accounting and payroll systems, using unique user accounts and multi-factor authentication for online banking, cloud accounting software and communication with authorities. Limit access strictly to staff who need it for their work and review access rights regularly, especially when employees change roles or leave the company.

Technical security measures should include encrypted storage of sensitive documents, secure backup routines, up-to-date antivirus and firewall solutions, and automatic locking of workstations. When sending payslips, tax information or financial statements, use encrypted email solutions or secure client portals rather than regular unencrypted email. Mobile devices used for work should be protected with strong passwords, device encryption and remote wipe options.

Organisational measures are equally necessary. Establish written internal policies for data protection, secure use of email, password management, handling of physical documents and clean desk practices. Train all employees regularly on GDPR basics, phishing risks and how to react in case of a suspected data breach. For new staff, include data protection obligations and confidentiality clauses in employment contracts and onboarding procedures.

Retention and deletion rules must be clearly defined and followed. Danish bookkeeping legislation requires you to store accounting records for at least 5 years, but you should not keep personal data longer than necessary for the specific purpose or longer than required by law. Create a deletion schedule for different data types, such as client files, payroll records, email correspondence and recruitment documents, and document how and when data is anonymised or securely destroyed.

You are also required to handle data breaches in a structured way. Set up an internal procedure for identifying, documenting and assessing incidents such as lost laptops, misdirected emails or unauthorised access to systems. If a breach is likely to result in a risk to the rights and freedoms of individuals, you must notify Datatilsynet within 72 hours and, in serious cases, also inform affected data subjects without undue delay. Keeping a detailed breach log is mandatory, even for incidents that do not require notification.

Finally, review your GDPR compliance regularly as your ApS grows. New services, software solutions, cross-border clients or outsourcing arrangements can change your risk profile and documentation needs. Periodic internal audits, updates to your records of processing activities and refresher training for staff help ensure that your accounting company remains compliant, secure and trustworthy in the Danish market.

Open a dedicated business bank account and set up online banking with proper access rights

Opening a separate business bank account is essential for any new ApS in Denmark. It ensures a clear split between company and personal finances, supports correct bookkeeping and makes it easier to document transactions to SKAT, the Danish Business Authority and your accountant. Most Danish banks will require that the company is fully registered with a CVR number and that the initial share capital (minimum DKK 40,000 for an ApS) can be documented.

When choosing a bank, compare account fees, online banking functionality, integration options with your accounting software and the bank’s experience with Danish limited liability companies. Be prepared for a thorough Know Your Customer (KYC) and anti–money laundering check. Banks typically ask for the company’s articles of association, the memorandum of association, proof of paid-in share capital, identification and address documentation for all owners and management, and information about the company’s expected activities, turnover and main markets.

Once the account is approved, transfer the share capital from the lawyer’s client account or temporary capital account to the new business account. Keep all bank confirmations, as they are often required for audits, loan applications and in case of control from SKAT. Use the business account consistently for all company-related income and expenses, including VAT (MOMS) payments, salary payments, supplier invoices and tax instalments.

Setting up online banking is the next crucial step. In Denmark, business online banking is normally linked to NemID/MitID Erhverv, which allows secure login and digital signing on behalf of the company. Make sure that the company’s legal representatives are correctly registered in the Danish Business Authority’s system, as banks use this information to determine who can sign agreements and approve payments.

Define clear access rights for everyone who will use online banking. Typically, you will distinguish between users who can only view account information, users who can create but not approve payments, and users with full signing rights. Many banks allow you to set individual transaction limits, daily or monthly payment ceilings and dual-approval workflows, where two authorised persons must approve larger transfers. This reduces the risk of fraud and errors and is particularly important if you outsource bookkeeping or payroll.

For efficient financial management, activate additional services such as payment files for suppliers, automatic reconciliation files for your accounting system, and separate accounts for VAT, payroll and tax prepayments. Coordinate the bank setup with your accountant so that account numbers, user rights and file formats match your bookkeeping procedures. A well-structured business bank account and carefully managed online banking access are key to maintaining compliance, transparency and control over your ApS finances from the very beginning.

Define management responsibilities and update the company’s articles and ownership register in the Danish Business Authority system

Once your ApS is registered, you must ensure that the company’s management structure, articles of association and ownership information are correctly recorded and continuously updated in the Danish Business Authority’s system (Virk / Erhvervsstyrelsen). This is not only a legal requirement under the Danish Companies Act, but also a practical necessity for banking, audits, financing and cooperation with public authorities.

Start by clearly defining the roles and responsibilities of the management. An ApS must have at least one executive director (managing director), and may optionally have a board of directors. The articles of association should describe how the company is managed, who can sign on behalf of the company, and how decisions are made. It is important that this internal setup matches the information registered with the Danish Business Authority, especially regarding signatory rules and powers of representation.

Next, review and, if necessary, update the articles of association that were filed when the company was formed. Typical updates include changes in share capital, share classes, voting rights, management structure, financial year or business purpose. Any amendment to the articles must be adopted by the general meeting and registered digitally with the Danish Business Authority within the statutory deadlines, usually no later than two weeks after the decision has been made.

You must also ensure that the ownership register (ejerbog) and the public register of owners in the Danish Business Authority’s system reflect the actual ownership structure. All direct and indirect owners holding at least 5% of the capital or voting rights must be registered, and you must identify and register beneficial owners (reelle ejere) who ultimately control more than 25% of the company or otherwise exercise controlling influence. If no beneficial owner can be identified, this must be recorded and documented. Changes in ownership or control must be reported without undue delay.

In practice, this means keeping your internal ownership register up to date and promptly reporting transfers of shares, capital increases, capital reductions, new share classes or shareholder agreements that affect control. Failure to maintain and update the ownership information can lead to fines and, in serious cases, compulsory dissolution of the company. Banks and other financial institutions will also typically require that the beneficial ownership information in the Danish Business Authority’s register is accurate before opening or maintaining business accounts.

Finally, align your internal corporate governance procedures with the registered information. Make sure that minutes from general meetings and board meetings are prepared and stored, that management decisions are documented, and that the signatory rules used in practice correspond to those registered. This reduces the risk of disputes with shareholders, problems with banks or challenges from authorities, and it provides a solid, transparent foundation for the company’s future growth.

During the execution of important administrative formalities, where mistakes may lead to legal sanctions, we recommend expert consultation. If necessary, we remain at your disposal.

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