Steps for Opening a Corporate Bank Account in Denmark

Is it complicated to open a corporate bank account for a Danish company?

 

Yes, it is generally complicated to open a bank account in Denmark, especially for new companies due to regulations on money laundering that banks must comply with. Preparing a business plan and budget can help speed up the process.

 

What should be prepared for the bank?

 

To increase the chances of opening a corporate bank account, it is recommended to prepare a business plan and a 12-month profit and loss budget, an annual balance sheet budget, and a 12-month cash flow budget. Additionally, having a company website can help present the company professionally to the bank.

 

Which banks are worth trying first?

 

None of the banks are particularly easy to work with, but some common choices include Nordea, Danske Bank, and Nykredit. It is usually not recommended to try with Jyske Bank, as they may require an expensive company audit each year to create a bank account.

 

The cost of setting up a bank account

 

The cost of an audit for a company usually ranges between DKK 20,000-50,000 + VAT per year. An annual audit is not required by law for smaller companies in Denmark, so it is an additional cost required by the bank. The cost of opening a company bank account is typically around DKK 4,000-5,000 for banks like Nordea and Danske Bank.

What to do if you can’t open a corporate bank account?

 

If your application for a business bank account has been rejected by all banks, it can be a significant challenge for your business. A bank account is essential for receiving payments from customers, paying suppliers, etc.

 

When is it most common for a Danish bank to open a company account?

In the experience of many, Danish banks are more likely to open a corporate bank account after 3-6 months, when the first financial report can be shown. While it is possible to open a new corporate bank account, it usually requires patience.

 

Revolut

An alternative option for those unable to open a Danish bank account is to use Revolut, an online banking service that enables you to open a corporate bank account in DKK, EUR, USD, etc. However, it should be noted that transferring money in Denmark to a bank account won’t be a standard bank-to-bank transfer, but rather an IBAN/SWIFT transfer. This should not be a problem for B2B customers, but B2C customers may be suspicious of international transfers. Revolut provides a MasterCard for paying business expenses and finalizing payment solutions for the website.

 

Is it possible to create a corporate bank account without personally visiting the bank?

Due to anti-money laundering regulations, a business owner/director will generally need a personal meeting with the bank.

 

Can somebody else open a bank account for me?

No, the bank accepts only the owner/director of the company during the onboarding process.

 

Is a company bank account necessary to establish a limited liability company in Denmark?

A limited liability company (ApS) can be established without a corporate bank account, but one will be needed if the company’s share capital is to be transferred from the lawyer after registration. Additionally, once you start to receive money from clients, your company will need a corporate bank account. It is advised to never accept payments from clients on a private bank account, as this is considered a shareholder loan, which is heavily taxed in Denmark.

Do I need a bank account to start a sole proprietorship in Denmark?

It is possible to establish a sole proprietorship in Denmark without a corporate bank account, but it becomes necessary once you start receiving payments from customers. It is advised not to use a private bank account for business use, as the bank may close it down.

There are numerous banking options available in Denmark, each with different features. It is recommended to research and compare many offers to choose the most suitable option. One of the most commonly compared features of bank accounts in Denmark is their price. Below are some selected bank accounts, starting from the cheapest, presented in tables.