Closing a Business in Denmark: Complete Guide to Deregistration

Closing a business in Denmark involves far more than simply deciding to stop trading and switching off the lights. Whether you run a sole trader or a limited company, there are legal, tax and administrative obligations to see through, and getting them right matters. A business that is not formally deregistered can linger in the system, and that can mean ongoing tax assessments, penalties and, in some cases, personal liability. The process differs quite a lot depending on the structure you chose, so this guide sets out what each type of business needs to do, alongside the deadlines and thresholds that govern the whole exercise.

The aim here is educational rather than advisory. The rules in this area are detailed and change from time to time, so while the figures and steps below reflect how things tend to work, you should always confirm the current requirements and consider speaking to an accountant before finalising anything.

Sole trader (enkeltmandsvirksomhed)

If you run your own business as an individual — rather than through a limited company — closing it is a relatively straightforward affair. It is still a process with several steps, but none of them are especially complicated if you work through them in order.

Deregister via Virk.dk

The first, and most important, step is to log in to Virk.dk with your MitID and deregister your CVR number. Once the deregistration is processed, it is immediate. This is not optional even if you believe you have no outstanding obligations — unless you deregister, SKAT may continue to assess you for VAT and tax as if the business were still active.

File your final tax return

You must file a final tax return (skattemæssig indberetning) covering the period from the start of your last tax year up to the date of closure. That means including all income and expenses up to that date. If you close part-way through the year, you will need to apportion income and expenses accordingly.

Settle the final VAT (moms)

You also need to file a final VAT return covering the period up to the date of deregistration. You can deduct input VAT on any final business expenses you incurred before closure. Once you file, SKAT will calculate whether there is any outstanding VAT owed, or whether a refund is due to you.

Pay outstanding tax

Any remaining tax obligations need to be settled, including:

• Income tax on your final profits
• AM-bidrag (the labour market contribution) at 8%
• Any outstanding VAT
• Any penalties or interest that have accrued

Keep records for 5 years

Even after the business has closed, you must retain all accounts, invoices, bank statements and supporting documents for 5 years from the end of the accounting period. SKAT is entitled to audit your records during this time, so it is worth keeping everything safe and accessible.

ApS or A/S (limited company)

Dissolving a limited company is a more involved process than closing a sole trader. It involves shareholder decisions, creditor protection and formal deregistration, and there is more at stake if steps are missed. In broad terms the process runs through the following stages.

Shareholders must vote to dissolve

The first step is a general meeting (generalforsamling) where the shareholders vote to dissolve the company. For an ApS, a simple majority is sufficient. For an A/S, the articles of association may require a larger majority. Whatever the outcome, the resolution needs to be documented in the meeting minutes.

Apply for dissolution via Virk.dk

You then submit the dissolution application through Virk.dk with your MitID. You will need the shareholder resolution, details of the board members and information about the company’s financial position.

Appoint a liquidator

If the company’s assets exceed DKK 300,000, you must appoint a liquidator. The liquidator manages the winding-up process, ensures creditors are paid and distributes the remaining assets. For smaller companies, the board of directors can typically manage the process without a formal liquidator.

File the final annual report

A final annual report must be prepared and filed, covering the period from the start of the last financial year to the date of dissolution. This report has to show the company’s financial position at the date of dissolution and include a statement of assets and liabilities.

Pay all creditors

Before a single krone is distributed to shareholders, you must pay all creditors in full. This includes:

• Trade creditors and suppliers
• Tax authorities (corporate tax, VAT, employee taxes)
• Banks and lenders
• Employees (final wages, holiday pay, pension contributions)
• Any other outstanding obligations

If the company simply cannot pay all its creditors, you may need to file for bankruptcy (konkurs) instead.

Distribute remaining equity to shareholders

Once all creditors have been paid, the remaining assets can be distributed to the shareholders, based on their share ownership. Shareholders are then taxed on the dividends received — currently 27% on the first DKK 79,400 (as of 2026) and 42% above that threshold.

Deregister from the CVR

The final step is completing the deregistration on Virk.dk. Once that is done, the company is removed from the CVR register and no longer has any filing obligations.

How long does closure take?

The time required depends heavily on the structure and size of the business.

For limited companies there is usually a creditor period of around 3 months from the publication of the dissolution notice. During this window, creditors can come forward with claims, and distributions should not be made until it has passed and all debts are settled.

Tax implications of closing

The tax treatment depends on the business structure, and it is worth understanding how each one works before you start.

Sole trader

For a sole trader, the final profit is taxed as personal income at your marginal rate — up to 52.5% including the AM-bidrag contribution. You file the final tax return via TastSelv or through your accountant.

ApS and A/S

A limited company pays 22% corporate tax on its final profit. After tax, the remaining equity can be distributed to shareholders, who then pay dividend tax (at the 27%/42% rates noted above) on those distributions.

Loss-making closures

If the company makes a loss in its final period, that loss can be used to offset any profit it earned earlier in the same tax year. For limited companies, losses can also sometimes be carried forward or back under certain conditions, which is a detail an accountant can confirm for your situation.

VAT obligations

Whatever type of business you run, you must, on closing:

1. File a final VAT return covering the period up to the date of deregistration
2. Deduct input VAT on any legitimate business expenses incurred before closure
3. Deregister for VAT as part of the CVR deregistration process

Once you are deregistered, you can no longer charge VAT on any subsequent sales. If you do continue to make sales after deregistration, you will need to account for the VAT on those sales separately.

Obligations to employees

If you have employees, their entitlements and the associated reporting are a key part of closing properly. You must:

• Give notice — notice periods depend on length of employment, typically 1–6 months under Danish employment law (ansættelsesloven)
• Pay final salary including any accrued but unused holiday pay (feriepenge)
• Pay outstanding pension contributions if applicable
• Report via eIndkomst — submit final payroll reports to SKAT
• Provide an employment reference — employees are entitled to a written reference

Failure to meet these employee obligations can result in personal liability for directors and board members, so it is not a stage to rush.

Debts and insolvency

The general principle is that all creditors are paid before any assets are distributed to shareholders. When the company cannot meet its obligations, several things can apply:

• Insolvent liquidation — if liabilities exceed assets, the company may need to file for bankruptcy
• Director liability — if directors continue to operate an insolvent company and incur further debt, they may be personally liable
• Creditor claims — creditors can file claims during the creditor period and may challenge any distributions made before all debts are settled

Record keeping after closure

Even once everything is wound up, you have an obligation to keep records in place. These should include:

• All accounts and accounting records — for 5 years (sole trader) or 5 years (limited company)
• Invoices and receipts — both incoming and outgoing
• Bank statements — for all business accounts
• Tax returns and correspondence with SKAT
• Board minutes and shareholder resolutions
• Employment records — for any former employees

Store these securely, whether in physical or digital form. SKAT can audit your records for up to 5 years after the end of the accounting period, so it is far better to keep everything than to risk a gap.

Closing thoughts

Closing a business in Denmark requires careful attention to tax, VAT, employee and creditor obligations. Sole traders have a simpler path, but must still file their final returns and keep their records. Limited companies face a more complex dissolution process, with mandatory creditor periods and potential liquidator requirements. The common thread across both is that cutting corners rarely saves time — it tends to create new problems. If you plan ahead, engage an accountant early and work through the steps methodically, you can bring your business to a clean and compliant close without penalties or personal liability.