Denmark Closing a Business Guide (Deregistration, Final Tax Return)

Voluntary Deregistration (CVR Afmelding)

The first formal step in closing your Danish business is deregistering from the CVR register. This is done through the virk.dk portal using MitID Erhverv. The process includes multiple notifications to ensure all obligations are fulfilled:

• CVR deregistration (afmelding) — Submit a deregistration request via virk.dk with the reason for closure (e.g., "ophør af virksomhed"). The system will check for outstanding filings and may prevent deregistration if returns are missing.
• Cancel VAT registration — When you deregister your CVR, your VAT registration is automatically cancelled. However, you must file a final VAT return covering the period from the last filed return to the cessation date. Do not assume deregistration cancels your VAT filing obligation.
• Close NemKonto — Inform your bank that your NemKonto (the designated account for government payments) should be closed or delinked from the CVR number. Any final tax refunds or payments from SKAT will be processed before the closure is finalized.
• Notify SKAT directly — While the CVR deregistration is the primary notification, it is advisable to also notify SKAT directly through TastSelv Erhverv to ensure all tax schemes (A-skat, AM-bidrag, VAT) are properly closed.
• Timing considerations — Cessation date is critical. Your filing obligations (VAT, A-skat, corporate tax) continue up to the exact cessation date. Choose a cessation date that aligns with your final VAT period end for simplicity (e.g., the last day of a quarter).

Failure to properly deregister can result in continued filing obligations, penalties for missing returns, and potential personal liability for company debts. For more on registration requirements, see our starting a business guide →.

Final VAT Return (Sidste Momsangivelse)

The final VAT return is one of the most critical filings when closing a business. It covers the period from the end of the last filed VAT period to the cessation date. Special rules apply:

• Filing deadline — The final VAT return must be filed within 3 months of the cessation date. This applies regardless of your usual filing frequency (quarterly or yearly).
• Correct for remaining inventory — If you have inventory of goods on hand at cessation, you must generally account for VAT on deemed disposal of these goods. The deemed sale value is the purchase price (or cost) of the goods. This prevents the business from recovering VAT on purchases that were not subsequently sold.
• VAT adjustments for capital goods — For capital goods (buildings, machinery, IT equipment) where VAT was deducted on acquisition, you may need to adjust (repay) part of the deducted VAT if the asset has not been fully used economically by the time of closure. The adjustment period is typically 10 years for real estate and 5 years for other capital goods.
• Reversal of deducted VAT on assets not fully depreciated — If you are closing before fully depreciating assets on which VAT was deducted, you may need to reverse a proportional amount of the input VAT. This is calculated based on the remaining useful life of the assets.
• Invoice corrections — Issue final invoices for all outstanding sales and ensure all receivables are collected or adjusted before closure. Any invoices issued before cessation but where the service was not yet delivered may require VAT adjustments.

Work with a revisor (accountant) on the final VAT return to ensure all adjustments are correctly calculated. Errors in the final VAT return can result in ongoing audit risk. For more on VAT rules, see our VAT registration guide →.

Final Corporate Tax Return (Selvangivelse)

For ApS and A/S companies, a final corporate tax return must be filed covering the period from the start of the financial year to the cessation date. Special rules apply to the final return:

• SEL-angivelse for final period — The final tax return covers the short period from the beginning of the financial year to the date of dissolution. All income earned up to the cessation date must be reported.
• Deeming of all remaining assets disposed — For tax purposes, all remaining assets are deemed to be disposed of at their market value on the cessation date. This triggers recognition of any accrued gains or losses. This applies to both tangible assets (equipment, buildings) and intangible assets (goodwill, customer lists).
• Liquidation profit/loss — The difference between the deemed proceeds from asset disposals and the tax-written-down values is treated as liquidation profit or loss. Liquidation profit is taxable as ordinary income at 22% corporate tax rate. Liquidation losses can be offset against other income in the final year (subject to loss carryforward rules).
• Final tax settlement — The final tax payment is due based on the final return. Any remaining tax refund or payment after liquidation is settled through the company's tax account. The final deadline for payment is typically November 20 in the year following the income year, unless the liquidation is completed earlier.
• Deadline: 6 months after dissolution — The final tax return is due 6 months after the legal dissolution of the company (i.e., after the final general meeting approving dissolution). This overrides the standard June 30 deadline.

For more on corporate tax return filing, see our business tax return guide →.

Dissolution of ApS/A/S

Limited companies require a formal dissolution process that is more complex than simply ceasing operations. The method depends on whether the company is solvent or insolvent: For a detailed treatment of tax implications of insolvency and bankruptcy, see our Insolvency & Bankruptcy Tax Guide →.

Solvent dissolution (likvidation):

• Generalforsamling (general meeting) — The shareholders must call a general meeting and pass a resolution to dissolve the company. A likvidator (liquidator) is appointed, who takes over the management of the company for the dissolution period.
• Creditor notice period — The liquidator must notify known creditors and publish a notice in the Statstidende (Danish Official Gazette) giving creditors at least 3 months to submit claims. Creditors must be paid in full before any distribution to shareholders.
• Final report and accounts — The liquidator prepares final accounts showing the realization of assets, payment of debts, and the liquidation surplus. This is submitted to Erhvervsstyrelsen.
• CVR deregistration after final report — Erhvervsstyrelsen deregisters the company from the CVR register after receiving and approving the final report. The company then ceases to exist as a legal entity.

Simplified dissolution (forenklet likvidation): For small companies with no debt and assets under 75,000 DKK, a simplified dissolution procedure is available. This does not require a liquidator or creditor notice period. The shareholders simply declare that all debts have been paid and submit a simplified final report to Erhvervsstyrelsen. The process is faster (typically 1-2 months) but requires unanimous shareholder consent.

Compulsory dissolution (tvangsopløsning): If a company fails to file annual reports or otherwise breaches the Companies Act, Erhvervsstyrelsen may forcibly dissolve the company. This can result in personal liability for directors and shareholders. Avoid this by ensuring all filings are current before closure.

For more on company structures and governance, see our company forms guide →.

Closing an Enkeltmandsvirksomhed (Sole Proprietorship)

Closing a sole proprietorship is significantly simpler than dissolving a limited company. However, certain steps must still be followed:

• Cease trading — Stop all business activities on the cessation date. Settle all outstanding invoices as far as possible.
• Cancel CVR — Deregister from the CVR register via virk.dk. This automatically cancels your VAT registration and other tax schemes linked to the business.
• Final B-income in forskudsopgørelse — Update your forskudsopgørelse (preliminary income assessment) to remove expected B-income/self-employment income for the remainder of the year. Report the actual final income in your final tax return (årsopgørelse) for the cessation year.
• Final VAT return — File a final VAT return covering the period from the last filed return to cessation, following the same rules as for limited companies (within 3 months, including inventory adjustments).
• No separate dissolution process — Unlike limited companies, a sole proprietorship has no separate legal personality. Once you deregister from CVR and settle tax obligations, the business is effectively closed. There is no separate legal dissolution process.
• Personal liability continues — Important: as a sole proprietor, you are personally liable for all business debts. Even after closing, creditors can pursue you personally for outstanding obligations. Ensure all debts are settled before or at closure.

For B-income reporting after closure, see our B-income guide →. For personal tax implications, see our personal tax guide →.

Record Retention After Closure

Even after your business is closed, you have ongoing obligations to retain records. SKAT and Erhvervsstyrelsen can audit closed businesses:

• Accounting records: 5 years from year-end — Under the Bogføringsloven (Accounting Act), all accounting records must be retained for 5 years from the end of the financial year. This includes invoices, receipts, contracts, bank statements, wage records, and accounting ledgers.
• Tax records: 5 years from final assessment — Tax records (including VAT returns, corporate tax returns, and supporting documentation) must be retained for 5 years from the date of the final tax assessment. Since the final assessment may occur after the last financial year-end, this period may extend beyond the accounting retention period.
• Digital archive plan — With mandatory digital bookkeeping from 2025, you must ensure your digital records are preserved in a readable format for the full retention period. Export your accounting system data (including backups) and store it securely. Cloud accounting systems may delete data after account closure, so export before closing.
• SKAT audit rights post-closure — SKAT has the right to audit closed businesses within the retention period. If they find errors, they can issue reassessments with interest and penalties. If the company has been dissolved, SKAT may pursue directors or shareholders personally in cases of intentional wrongdoing.
• Personal records for sole proprietors — As a sole proprietor, you remain personally liable for any tax reassessments arising from the business. Keep your business records separate from personal records even after closure to facilitate any future SKAT inquiries.

Failure to retain records can result in penalties and difficulties defending against SKAT assessments. We recommend creating a closure checklist with a revisor to ensure all obligations are met and records properly archived. For more on bookkeeping requirements, see our starting a business guide →.

FAQs

How long does it take to close a Danish ApS?

Solvent dissolution typically takes 3–6 months from the general meeting decision to final deregistration. The creditor notice period alone is 3 months. Simplified dissolution (assets under 75,000 DKK, no debt) can be completed in 1–2 months.

Do I need a revisor to close my business?

Not legally required, but strongly recommended, especially for ApS/A/S dissolutions. A revisor ensures correct handling of the final VAT return (including capital goods adjustments), the final corporate tax return (including deemed disposal calculations), and the dissolution process. Errors can be costly and create personal liability risks.

Can I close my business if I have outstanding debt?

Yes, but the process is more complex. For ApS/A/S, all creditors must be paid or reach settlement before dissolution. If you cannot pay, you should consider bankruptcy (konkurs) instead of voluntary dissolution. For sole proprietorships, personal liability means you remain responsible for debts regardless of business closure.

What happens to my CVR number after closure?

Your CVR number is permanently deactivated and cannot be reused. If you start a new business later, you will receive a new CVR number. The old registration remains visible in the CVR register with a status of "ophørt" (ceased).

Can SKAT audit my business after it is closed?

Yes. SKAT can audit closed businesses within the 5-year retention period for accounting records and 5 years from final assessment for tax records. In cases of suspected fraud or gross negligence, the period extends to 10 years. Maintain your records for the full retention period.