Most official business in Denmark is carried out digitally. You will be assigned a unique business number, the CVR to use in all official communication. You will have to pay VAT (MOMs). There are rules about documenting receipts, issuing invoices, bookkeeping, accounts and documenting salaries. You will need business insurance and there may be special requirements depending on the industry sector that your business is in eg regarding food, fuel, chemicals and so on.
Digital: Almost all official requirements in Denmark take place online. This means that once you have your CVR number, you will need to decide which bank account will be your official bank account and you will need to get a special company NemID to enable you to access tax and other official websites to report your business activities.
CVR number: If you expect to turnover less than 50.000 DKK per year then you may not need to register the business. In every other case you should register the business to get a CVR number. It would be impossible to carry out all the other administrative requirements without a CVR number.
MOMs: You will need to declare all VAT (MOMs) received and paid every 3 months. Even if there is nothing to report, you need to report a zero result or you will get fined.
Salaries: You have to declare how much salary you have paid to employees (including yourself). As with VAT, if you have set up a salary payment and there is a month without any salary being paid, you still have to report a zero.
Accounts: You have to report your accounts once a year as personal income for a sole trader or partnership, or to the business ministry for a limited company.
Invoices & receipts: You should make sure that you have documentation, either paper or electronic, for all payments and receipts in your business.
Bookkeeping: You should make sure that you have a well-organised system for keeping track of the payments and receipts in your business.
Business insurance: You need to have relevant business insurance so that if someone is hurt either physically or financially because of something you do as part of the business, then they can get compensation.
Other requirements: There may be additional requirements if you are serving food regarding hygiene, or if you are using a vehicle as part of the business. For example, business vehicles must carry the CVR number of the business on the outside of the vehicle and there are strict rules about not using the vehicle for private reasons.
Help: It is a good idea to get an expert to help with some of the above requirements. For example, an accountant could do all your bookkeeping, VAT returns and filing your annual accounts as well as taking care of your salary payments and tax and pension returns for about 10.000 – 15.000 DKK per year.
There are also rules about claiming business expenses if you run the business from your home and about identifying the business on its website by making sure that the CVR number is on the home page of the website.
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