companydata.dkSole proprietorship (enkeltmandsvirksomhed)
A sole proprietorship (enkeltmandsvirksomhed) is a personally owned business with one owner, who is personally and unlimitedly liable for the business's obligations. There is no capital requirement, and the business is not a separate legal entity.
The sole proprietorship is the easiest way to start a business: free to register, no capital requirement, and simple administration. The price is the liability — if the business fails, the owner is liable with their entire private wealth. The business's result is taxed as the owner's personal income.
Accounts and transparency
Sole proprietorships belong to reporting class A and do not file annual reports with the Danish Business Authority. There are therefore no public financials for them — unlike ApS and A/S companies, where anyone can look up the numbers.
Related terms
Private limited company (ApS)
An anpartsselskab (ApS) is a Danish private limited company where the owners are liable only for their contribution. It is Denmark's most common company type and requires share capital of at least DKK 20,000.
General partnership (I/S)
An interessentskab (I/S) is a Danish general partnership with at least two owners (partners) who are personally, unlimitedly, and jointly liable for the business's debt. Partners can be both individuals and companies.
Reporting class (regnskabsklasse)
The reporting class (A, B, C, or D) is the Danish Financial Statements Act's grouping of companies by size and type. The class determines the content requirements for the annual report — the higher the class, the more disclosure.
CVR number
A CVR number is the 8-digit number a company is assigned when registered in the Danish Central Business Register (CVR). The number is the company's unique identification towards authorities, customers, and suppliers.