Have a business idea? Take the first step with PMV and grow at your own pace

Are you thinking about starting your own business in Denmark, but not sure if it's the right time? 💭

Thanks to PMV - Personligt Ejet Mindre Virksomhed you can try your hand at business without much cost, without much bureaucracy, and without start-up commitments. 🚀

This is ideal for:
✔️ freelancers,
✔️ craftsmen,
✔️ service providers,
✔️ and anyone who wants to legally test your idea on the Danish market 🇩🇰.

In this article you will learn:
👉 How PMV works,
👉 what you can gain from it,
👉 and how to set it up.

What is PMV?

PMV is a small one-person company - is the smallest and simplest type of company you can start in Denmark.

Do you have a full-time job, but dream of something more? 💡 PMV is a great option to safely develop your own project, make extra money after hours or test your idea on the Danish market - without big costs and without hiring employees.

But choosing this type of business has its advantages and disadvantages.

Advantages and disadvantages of running a sole proprietorship PMV in Denmark

Advantages

✅ No registration costs - setting up a business is free,
✅ No initial capital requirement (In the case of a partnership in Denmark, Aps is DKK 20,000),
✅ No obligation to audit annual reports (revision af regnskaber),
✅ No need to file annual financial statements, the company's financial performance is not visible to the public,
✅You save time because you don't have to deal with VAT accounting(Moms),
✅You can offer lower prices to customers and be more competitive, or earn more because you don't have to add VAT to your invoices.

Disadvantages

❌ You can achieve a maximum turnover of DKK 50,000 per calendar year,
❌ As the owner of a sole proprietorship, you are responsible for its debts with your own private assets,
❌ You can only be the sole owner - a sole proprietorship does not allow for joint ownership,
❌ You cannot have employed workers,
❌ No imports or exports to countries outside the EU,
❌ Your company must not have a so-called afgift, including lønsumsafgift or punktafgift,
❌ You should renew your company registration every three years.

📌 If you exceed certain limits (e.g., turnover or scope of operations), you will have to transform your company - most often into a sole proprietorship (enkeltmandsvirksomhed) Or, for example, a limited liability company. (ApS) about which later in the article.

Who can set up a PMV?

Virtually anyone can start a business in the form of Personligt Ejet Mindre Virksomhed (PMV) in Denmark.

The requirements are minimal and most people easily meet them:

➤ You must have completed 18 years,
➤ Have registered address in Denmark,
➤ Have been granted Danish CPR number,
➤ Be owner assumed PMV activities.

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How to set up a PMV?

How to start a sole proprietorship?

Starting a sole proprietorship is quick, easy and completely free. If you want to start your own business, all it takes is a few steps:

1. Visit virk.dk and click „Start virksomhed”,
2. Log in with MitID,
3. Select the form of business: „PMV”,
4. Provide your personal information (name, surname, address, etc.), as well as information on VAT registration and other tax obligations,
5. Click „OK.”.

Once your registration is complete, you will receive a CVR (Central Business Register) number for your e-box, usually within a few days.

Attention! If you are collecting unemployment benefits (dagpenge) or other benefits and you want to run a company in addition, make sure to check with the office that pays the money to see if you can do so.

Does a PMV need to have a bank account?

It is not an absolute requirement for a small private company (PMV) to have a company bank account. However, it is worth considering the benefits of establishing one.

Most banks do not allow business transactions through a private account.

So a business account may be necessary to clearly separate private and business transactions, a business bank account may also be foreign, such as Revolut.

It is also worth mentioning that for any type of business, including (PMV), having an associated NemKonto account is a requirement. It is necessary to provide government agencies with an official place to send money for your business (e.g., tax refunds), if necessary, therefore having a separate business account is a good idea.

It is important to familiarize yourself with the offerings of different banks, as both opening and maintaining a business account may involve additional costs, such as the cost of opening a business account and a monthly subscription. It's worth consulting your needs with several banks to find the best solution for your PMV.

Taxes in a sole proprietorship

A sole proprietorship pays income tax on its profit. The owner accounts on the same basis as an individual, which means that he pays tax on the full amount of income.

Example (simplified):

Jan runs a one-man registered construction company. In 2025, his revenue (the amount of money the company earned) was 40,000 DKK, and operating costs, such as materials and tools, amounted to 10,000 DKK .

Income calculation:
DKK 40,000 (revenue) - DKK 10,000 (costs) =. 30,000 DKK (income before taxes).

As a sole proprietor, Jan does not pay tax as a company, but settles like an individual. This means that his income is subject to the same tax rules as for a salaried person.

If your business has losses, you can deduct them from your own income or your spouse's income

What should I do if my PMV turnover exceeds DKK 50,000?

If your private small business (PMV) achieves a turnover of more than DKK 50,000 in a calendar year period you must change your business from PMV, most often changing to EMV's sole proprietorship and registers the company as a VAT payer. This process can be easily done through Virk.dk's website under the tab „Ændre virksomhed” (Change company) - You will then retain your CVR number.

It is important to make this change in a timely manner to comply with tax regulations and avoid potential penalties. Once you register your business as a sole proprietorship, you will be required to keep regular VAT accounts and file VAT returns.

What does the transition from PMV to ApS look like?

When your privately owned small business (PMV) grows, it is worth considering converting it to a limited liability company (ApS). Such a change can prove beneficial, as an ApS provides better protection for your personal assets and the ability to attract investment. The process of converting a PMV into an ApS is relatively simple, but requires careful consideration of financial aspects. For example, setting up an ApS requires initial capital of at least DKK 20,000 in 2025.

In addition, the transition to ApS will change your tax status and result in new accounting requirements that may affect the operations and administration of your business.

Differences between PMV and other forms of business in Denmark

When you need to choose a form of business, there are many different factors to consider. Ultimately, the right form of business will always depend on your specific situation and needs.

To make it easier for you to choose, we've prepared an overview where you can quickly learn the similarities and differences between the four most popular business forms for self-employed people and entrepreneurs: PMV, sole proprietorship EMV, I/S and ApS.

Still wondering what form of business to choose? take a peek here: What form of business in Denmark will be best for you?

Not sure where to start? Need more information or advice?

📞 Call us: +45 35 13 13 10 (Mon-Fri, 8:00am-6:00pm)
📧 Write: helpy@your-adviser.dk