Am I allowed to start my own business in Denmark?
Yes — you can start a sole proprietorship and get a CVR number free on virk.dk. You must register for VAT if turnover exceeds 50,000 kr within 12 months, and you must register at least 8 days before you start VAT-liable activity. The VAT rate is 25%. In a sole proprietorship you are personally and unlimitedly liable for all debt — there is no separation between personal and business finances. The profit is taxed as personal income (B-tax), and you can opt into the business scheme. Below 50,000 kr you can skip VAT registration, or start an even simpler small-business form.
📋 The rules
- A CVR for a sole proprietorship is free
- VAT registration if turnover over 50,000 kr
- Register at least 8 days before VAT-liable activity
- The VAT rate is 25%
- You are personally liable for all debt
🔓 Exceptions
- Below 50,000 kr you can skip VAT registration or register voluntarily
- A small-business form is an even simpler option for turnover under 50,000 kr
- Certain sectors such as health and education are VAT-exempt
⚠️ Penalties & fines
If you run a VAT-liable business without registering, the tax authority can demand back-VAT plus interest and a fine, and deliberate evasion can be punished.
📎 Official sources
❓ Frequently asked
Can I start my own business?
Yes. You can register a sole proprietorship and get a CVR number free on virk.dk.
When must I register for VAT?
When turnover exceeds 50,000 kr within 12 months. You must register at least 8 days before.
Am I personally liable?
Yes. In a sole proprietorship you are personally and unlimitedly liable for all business debt.
What if turnover is under 50,000 kr?
Then you can skip VAT registration or start an even simpler small-business form.
How is the profit taxed?
As personal income via B-tax. You can also opt into the business scheme to optimise the tax.
🔎 Common searches
What people search to land here:
- “can I start a business denmark”
- “cvr sole proprietorship free”
- “vat registration 50000 kr”
- “personally liable business”
- “small business form”
- “b-tax self-employed”