This is probably because it is very easy to register and if there is no greater risk to run the company, many believe that you might as well make your business operations legal.
This guide is only for foreigners already living in Denmark and who have got a residence and work permit.
Have you decided that it is now you must register your sole proprietorship, you must:
After you click OK, you are the owner of your own sole proprietorship business. Yes, it is that easy.
If you are unemployed and receive support from your A-kasse or do you receive cash assistance (kontanthjælp) from the municipality you cannot just register a business. If you do it anyway you will lose your financial support from the government.
Generally it is the case that if one receives public assistance it requires a special permit also to start a business. Ask youâ€™re a-kasse or the Municipality for specific rules.
Do you get SU (student support) or do you not get any public assistance feel free to establish your own business. You are a free person.
The benefits of being a sole proprietorship instead of an entrepreneurial limited company or private limited company include:
Disadvantages when having a sole proprietorship company in relation to a private limited company:
It is not uncommon that you start to operate your business as a sole proprietorship and when profits and risk increases, you change the business form to a limited company.
It is straightforward to transform your sole proprietorship to a private limited company by using the a tax-free reorganization. Ask an accountant or lawyer for advice.
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