From CVR number to NemKonto: the terms you meet when starting a company

The terms behind it, briefly explained

Finally a quick glossary of the terms from this article — brief and concrete, the way we explain them to our customers.

What is a CVR number?

A CVR number is the business's official ID in the Central Business Register — the company equivalent of a CPR number.

The CVR number must appear on invoices and is used with the bank, the Tax Agency and customers. Registration happens on virk.dk, and the number follows the business for life.

What is a P-nummer (production unit number)?

A P-nummer is a 10-digit number identifying each physical address a business operates from. It belongs together with the CVR number.

A business always has at least one P-number — the main address — and gets an extra one for each additional location, a second shop or the warehouse, say. P-numbers are created and changed free of charge on Virk.

What is an SE-nummer (tax registration number)?

An SE-nummer is an administrative number with the Tax Agency, used for VAT, payroll tax and other registrations. For most businesses it is identical to the CVR number.

A business can hold several SE numbers, for instance when parts of the business settle VAT separately (split registration). On invoices you state the CVR number in practice — with DK in front as the VAT number.

What is a NemKonto (public payments account)?

A NemKonto is the bank account public authorities use when paying out money to you or your business — VAT refunds and overpaid tax, for example. Every business with a CVR number must have one.

The NemKonto is an ordinary business account that you or the bank flag as the NemKonto. Without one, payments from the public sector cannot go through — the money waits until the account is in place.

What is selskabskapital (share capital)?

Selskabskapital is the capital owners commit to a company at formation — at least DKK 20,000 for an ApS and DKK 400,000 for an A/S.

The capital is not a fee: the money belongs to the company and can be used in operations from day one. It can also be contributed in kind (equipment, say) — that requires a valuation report from an auditor.

What is vedtægter (articles of association)?

Vedtægter are a company's basic rules — name, purpose, capital, financial year and rules for general meetings and signing authority. They are mandatory for ApS and A/S companies.

The articles are created at formation and registered with the Business Authority, where they are public. Changes — a new name or financial year, say — require a general meeting resolution and registration before they take effect.

What is an ejerbog (register of owners)?

An ejerbog is the company's internal register of everyone owning shares — name, address and stake. Every ApS and A/S must keep one.

The register is not public but must be available to the authorities. Not to be confused with the Public Owners' Register, where stakes above 5% and the company's beneficial owners are registered — that happens on Virk.

What is reelle ejere (beneficial owners)?

Reelle ejere are the natural persons who ultimately own or control a company — typically holding more than 25% of the shares or votes.

Every company must register its beneficial owners with the Business Authority — also when ownership runs through a holding company. Missing registration can mean fines and ultimately forced dissolution. If no beneficial owners exist, the management is registered instead.

What is a generalforsamling (general meeting)?

The generalforsamling is a company's highest authority, where the owners make the big decisions — approving the annual report, electing management and declaring dividends.

Every ApS and A/S must hold an annual general meeting so the annual report can be approved before the filing deadline. In single-owner companies the general meeting is, in practice, a resolution document the owner signs.

What is a PMV (small personally owned business)?

A PMV (personligt ejet mindre virksomhed) is a registration form for small personally owned businesses with revenue below DKK 50,000 a year — without VAT or employer registration.

A PMV is an easy start for hobby and side projects. Pass DKK 50,000 in revenue and you must re-register as a sole proprietorship and register for VAT.

What is an IVS (entrepreneur company, abolished)?

An IVS (iværksætterselskab) was a company form that could be founded with DKK 1 in capital. It was abolished in 2019, and all IVS companies had to convert to ApS or dissolve.

The IVS was introduced in 2014 to make starting a company cheap, but was abolished after widespread misuse; the re-registration deadline ran out in 2021. Today the alternative is the ApS, whose capital requirement has in turn been lowered to DKK 20,000.

What is an aktieselskab (A/S, public limited company)?

An aktieselskab (A/S) is a company form with limited liability and a minimum share capital of DKK 400,000. It is typically used by larger businesses.

An A/S must have a board of directors (or supervisory board) besides the management and can — unlike an ApS — be listed on a stock exchange. Tax-wise A/S and ApS are treated the same, at 22% corporate tax. Most small businesses pick the ApS for its lower capital requirement.

What is an interessentskab (I/S, partnership)?

An interessentskab (I/S) is a partnership with at least two owners who are personally, unlimitedly and jointly liable — each owner can end up liable for everything.

An I/S is easy to set up but requires deep trust between the owners precisely because of the joint liability. A thorough partnership agreement is a must.