Denmark is one of the countries with the safest banking systems in the world and the banking fees have a tendency to be quite low. After opening a company in this country, an entrepreneur also has to open a bank account in Denmark.
Since the financial services are important to any organization, for a new company, choosing the right bank is an important issue.
In this article, our company formation advisors in Denmark analyze the most important aspects regarding opening a Danish bank account and the issues related to this matter.
| Quick Facts | |
|---|---|
| Mandatory local bank account for companies (Yes/No) | Yes |
| Mandatory residence requirement | Yes |
| Bank account opening time | Between 2 and 10 business days, approximately |
| Online bank account opening | Yes, bank-dependent |
| Bank accounts for foreign nationals in Denmark | Yes, provided that they obtain the MitID |
| Required documents – companies | Corporate documents – proof of company registration Identification documents for the company owners or board members (MitID, identification documents) |
| Required documents – individuals | MitID Residence care or Danish passport for citizens Relevant documentation for foreign nationals (such as proof of university enrollment or employment contract) Other specific documents (may be requested by the bank) |
| Special requirements for foreign nationals | Obtaining the MitID |
| Bank fees | 120 kr – 300 kr annual account fee 2 kr – 5 kr for fixed transfers *examples only; the fees are determined by each bank |
| Initial deposit | Most banks do not charge for the establishment of the account; checking with the bank is highly advisable |
| Types of accounts | Basic payment account Salary account Savings account Student/young adult account |
| Online banking | Yes |
| Local agent requirements | Reccomended |
| Main banks in Denmark | Danske Bank Nordea Sydbank Nykredit Bank and others |
| Criteria for choosing the bank | Fees and interest rates Number of branches and ATMs throughout the country Online banking features/online banking app ease of use Other criteria may apply for international clients who already work with a foreign bank present in Denmark |
When you open a Danish company, choosing the right bank is of outmost importance. Therefore, a certain knowledge of the banking environment in Denmark is crucial for doing business in this country.
Denmark has one of the safest banking systems in Europe and local banks apply some of the lowest costs associated to opening bank account, administration, withdrawal fees. These low fees are available for those opening personal or corporate bank accounts in Denmark. Since we mentioned these types of bank accounts, it should be noted that individuals can also open savings or deposit bank accounts, while Danish companies can set up merchant accounts in this country.
The merchant account is important to companies that offer e-commerce services because it allows them to accept credit and debit card payments. This is an account that can be arranged for later after the steps for company formation in Denmark have been handled and the share capital is deposited in the regular corporate bank account. The merchant account will be established with the help of a business partner who will facilitate the communications in the electronic payment transactions. Investors should keep in mind that additional fees will apply, however, the benefits of accepting electronic payments will outweigh the costs.
If you want to open a bank account in Denmark, our company formation agents are ready to provide you with ongoing assistance. In some cases, it is possible to open the company bank account through a company representative, an individual who is empowered through a power of attorney to handle this step. This can be useful when company funders cannot be present in Denmark during the entire incorporation process. If this is the case, one of our agents can provide the needed assistance.
The banking sector in Denmark is heavily focused on only several major market players. The two largest banks in the country own a combined market share of approximately 70% or even more.
Foreign banks in Denmark target mainly larger corporations and multinationals, even though in the last years some of them have changed this strategy and now also offer personal loans. Our company registration executives in Denmark can offer more information on this subject and can help you open a bank account in Denmark.
According to the financial supervisory body in Denmark, which regulates the financial markets in this country, the banks in Denmark are categorized as follows:
Opening a bank account in Denmark is quite a straightforward procedure which generally involves no costs. First of all, one must obtain a residence permit and to create a MitID (a digital signature) which will allow the user to submit various documents online with the authorities. The MitID is useful when opening a company in Denmark, as well as a bank account.
For corporate bank accounts, the company representatives will be asked to provide relevant documents on the company, such as the Articles of Association as well as the identification documents of the company’s director or administrator. The minimum share capital is deposited after the account is formed, the same day. As per the rules set forth by the Ministry of Foreign Affairs, non-residents are entitled to the same rights to open a business and will need to observe the same costs. After a foreign investor has opened the bank account, the minimum share capital he will have to deposit for a private limited liability company will be of 40,000 DKK or approximately 5,363 EUR. One of our agents can provide you with more details about the capital if you wish to open a company in Denmark.
For individuals, the documents necessary to open a standard bank account in Denmark are the following:
The health insurance card can also be requested by some banks, however, this is not mandatory in all cases (in most situations, the CPR number will suffice when the applicant has not received the health insurance card).
Cross-border employees who open a bank account with a Danish bank (for the purpose of receiving their salary from the Danish employer) can be asked to present proof of address irrespective if it is in the country or not. The requirements for documentation can also differ from one bank to another.
Having an employment contract is an important condition for many banks. This means that the steps related to banking can be secured once the individual has ensured a job position in the country or he/she receives income from a Dutch-source in another form. An alternative for those who do not have a job is to provide the acceptance letter from the university or educational institution (applicable to those who move to Denmark for study purposes).
Foreign employees in Denmark can also choose to have their salary transferred to a bank abroad. The details of this transaction are established upon opening the bank account and, in some cases, individuals may wish to choose to work with the same bank branch as the one in their country of residence (if applicable). Once the account is created, most transactions are handled online and this is an important advantage. In many cases, the account holder will sign an online banking agreement when he opens the account.
Most Danish banks will provide bank account information in English upon request. Foreign applicants need to remember to discuss this with their bank advisor once they start the process and assistance will be provided, otherwise the information is automatically offered in Danish. What’s more, not all banks offer online services in English, this is why it is important to discuss this aspect when choosing the bank. Having the option to change the language in the designated app or website page is an advantage for expats until they learn Dutch.
Traveling to Denmark for company formation purposes in 2024, and therefore for bank account creation for the new company, may be subject to the investor’s ability to spend time in the country. If it is not possible to remain in Denmark during the entire process, our local team can help foreign entrepreneurs handle part or all of the company formation steps. For the purpose of bank account opening, as for other actions, we will need a set of documents as well as a permission to act on another’s behalf using a power of attorney.
We invite you to watch a video on the main steps to open a bank account in Denmark:
Having a designated bank account, the NemKonto, is also mandatory. This is also a regular bank account that is used for a specific purpose, that of receiving payments from the Danish public authorities, such as pensions or family allowances. Some companies will also need this account in order to receive an income or tax rebate.
When they open a bank account with a Danish bank, individuals simply have to inform the bank that the account they open will be assigned as the NemKonto. Individuals who, for some reasons, cannot open a bank account in Denmark may be able to assign a foreign account (in their country of origin) to be used as their NemKonto account.
Assigning a foreign bank account as the NemKonto is summarized below:
The process for assigning a foreign bank account for NemKonto purposes is different for companies in the sense that more documents are required. Applicants still need to submit the NemKonto form for companies (notarized or signed by two witnesses and the signees must have the right to act on behalf of the company). In addition to this document, the company’s articles of association are provided in a signed copy and official documents from the registration authority in the country where the company operates that proves the legal entity is formally registered (this document cannot be more than one month old). Copies of the signee’s identification papers are also provided. For companies, it is also possible to have a third party assigned for this NemKonto registration. Our team of agents who specialize in Danish company formation can provide this assistance upon request based on a mandatory power of attorney signed by the company officials. All documents are sent by post in Aalborg. When the process is complete, the applicant receives an activation letter after the NemKonto is assigned to the company. This is sent by post to the company’s registered address, as indicated. The activation cannot be sent in digitized form due to security concerns.
The Danish Agency for Digitization is in charge of NemKonto. Our agents can provide more information once the 2024 company registration in Denmark is complete.
Becoming the customer of a Danish bank is straightforward both for companies and for individuals, however, it is one step that needs to be taken into consideration by all those who wish to relocate to the country.
There are many foreign bank branches in Denmark and foreign nationals who relocate here may choose to work with a bank with which they have had previous experience. Many banks, both domestic and international ones, offer a variety of services that also include comprehensive online services and mobile banking solutions.
Some of the criteria that one may take into consideration when opening a bank account in Denmark include the following:
Below, our team of Danish company formation agents lists some of the most important banks in the country:
Banks can establish their own policies for selecting their clients, therefore it is possible for some financial institutions to interview their potential customers and ask questions about income, foreign transactions and others. In some cases, foreign nationals who open a bank account can be charged extra.
According to statistical data, it is projected that the banking sector in Denmark will reach US$32.5 billion in 2024. Other data shows that:
Before you decide on a bank with which you will work with, you can request more information about specific services as well as schedule a meeting with an advisor. Not all banks have English versions of their websites, however, Danes are fluent English speakers and calling the bank for more information or scheduling a meeting can be helpful. Alternatively, foreign clients can reach out to our agents for detailed information as well as assistance.
If you need to know more about the banking system in Denmark in 2024, or require assistance to open a company in this country, we invite you to get in touch with our Danish company formation representatives. They will help you open a bank account in Denmark and will assist you in all aspects related to investing in Denmark. In case you would like to open a bank account in another country, for example in Panama, we can put you in contact with our partners.
