Choosing the best business bank account in Denmark can be a challenging task, especially for foreign-born entrepreneurs. Whether you’re starting a barbershop, a convenience store, or a car repair business, having the right bank account is essential for managing your finances, ensuring tax compliance, and building credibility with clients and suppliers.
However, the process of finding and opening a business bank account as a foreigner in Denmark can be complicated due to compliance checks, language barriers, and varying banking fees. In this guide, we’ll compare some of the best business bank accounts in Denmark, highlight their features, and explain why Finklusiv can be your best ally in the process.
Why a business bank account is essential
A business bank account is more than a financial tool - it’s a requirement for most sole proprietors in Denmark. This is not dictated by law, but most banks require it. Here’s why it’s important:
- Payment to the authorities through your officially registered account: the Nemkonto. You will need it to receive payments for your VAT returns, for example.
- Financial organization: Separates your personal and business transactions, making accounting and tax filing easier.
- Professionalism: Shows clients and suppliers that your business is legitimate.
- Access to financial tools: Enables you in time to access loans, credit facilities, and payment processing services.
- Tax compliance: Simplifies VAT payments and ensures compliance with Danish regulations.
Key features to look for in a business bank account
When choosing a business bank account in Denmark, consider these factors:
- Account opening fees and monthly fees: Compare account maintenance fees, as these vary significantly between banks.
- Transaction costs: Look for hidden charges, such as fees for transfers or international payments.
- Language support: Ensure the bank offers online banking and customer support in English, or accepts that with a power of attorney, a trusted translator can help with your communication.
- Account features: Evaluate additional features like payment gateways, integrations with accounting software, and mobile banking apps.
- Accessibility for immigrants: Some banks are more welcoming to non-residents and foreigners than others.
Comparison of the some business bank accounts in Denmark
Here’s a detailed comparison of some of the top business bank accounts available to companies in Denmark:
1. Danske Bank Business Account
- Account opening fee: DKK 4,000*
- Yearly fee: Starting from DKK 1,428*
- Key features:
- User-friendly online banking platform
- Mobile app available in English
- Access to various financial services, including business loans and insurance
- Offers tailored packages for small businesses
- Best for: Established businesses looking for a comprehensive suite of financial services
- Downside: May require a strong financial history or additional documentation for foreign-born entrepreneurs
2. Nordea Business Account
- Account opening fee: DKK 4,800*
- Yearly fee: From DKK 1,980*
- Key features:
- Online banking in English and Danish
- Seamless integration with accounting tools
- Dedicated business advisors available for support
- Flexible payment solutions, including card and cash deposit terminals
- Best for: Businesses seeking strong customer support and payment flexibility
- Downside: Higher transaction fees compared to competitors
3. FasterOikos Business Account
- Account opening fee: DKK 2,000*
- Yearly fee: DKK 2,600*
- Key features:
- Cooperative bank with a strong human focus
- Access to financing options, including loans and leasing
- Dedicated advisors for business clients
- Best for: Small companies offering local service
- Downside: Doesn't support bigger companies or companies driven by several owners
4. Lunar Business Account
- Account opening fee: DKK 995*
- Yearly fee: From DKK 2,890*
- Key features:
- Fully digital banking experience
- Mobile app in English and Danish
- Affordable pricing for small businesses and startups
- No branch visits required for account setup
- Best for: Tech-savvy entrepreneurs who prefer digital banking
- Downside: Limited availability of in-person support. No cash deposit solution.
5. Sydbank Business Account
- Account opening fee: DKK 3,895*
- Yearly fee: Starting from DKK 1,860*
- Key features:
- Comprehensive business advisory services
- Tailored solutions for small and medium-sized enterprises (SMEs)
- Multi-currency accounts available
- Best for: SMEs needing tailored financial advice
- Downside: Higher fees for additional services
* Prices may vary based on individual circumstances and may not fully align with those shown in the table above. The setup fees and recurring charges were sourced from the banks' websites as of February 28, 2024, assuming the account holder is not already a private customer of the listed banks.
The typical cost of a business account ranges from 3,885 DKK to 8,000 DKK during the first year. In subsequent years, the annual expense is usually much lower, as the setup fee is a one-time charge. This includes both the account opening fee and annual maintenance fees. Additional expenses, such as charges for multiple accounts, payment cards, online banking, currency exchange, and similar services, are common but were not factored into this analysis.
The comparison is based on research conducted by Samlino on June 16, 2024, regarding the fees and costs associated with opening and maintaining a business account during the first year. See the full price analysis here.
Challenges foreign-born entrepreneurs face when choosing a business bank account
While the above options cater to businesses in Denmark, foreign-born entrepreneurs often face unique challenges:
- Strict documentation requirements: Banks require a CVR number, NemID/MitID, proof of address, and detailed business and private information. Foreign-born entrepreneurs may face additional scrutiny under anti-money laundering (AML) and "Know Your Customer" (KYC) regulations, such as proof of residency, strong ties in Denmark and questions about their private situation.
- Language barriers: Although some banks offer services in English, key documents and processes are often still in Danish.
- Lack of local credit history: Foreign-born entrepreneurs without a Danish credit history may struggle to open accounts with certain banks.
- Limited financial knowledge: Navigating Denmark’s banking system can be daunting for foreigners unfamiliar with local regulations.
How to choose the right bank as a foreign-born business owner
To ensure a smooth process, follow these tips:
- Check foreigner-friendly policies: Some banks, like Lunar and Sydbank, are known for being more accessible to non-residents.
- Seek help from experts: Consultants like Finklusiv can guide you through the process and help you find a suitable bank.
- Start with a personal account: Building a financial history in Denmark can make it easier to open a business account later.
- Ensure your application is well-prepared: A complete and well-documented application increases your chances of being accepted. Once a bank rejects an application, it can be difficult to overturn their decision.
Why Finklusiv can help you
Opening a business bank account as a foreigner in Denmark can be a complex process, but Finklusiv is here to make it easier.
Here’s why we’re the ideal partner for your banking needs:
- Specialized support for foreigners: Finklusiv focuses on financial inclusion and understands the unique challenges faced by foreign-born entrepreneurs in Denmark.
- Tailored bank recommendations: Based on your business type and circumstances, Finklusiv can connect you with the best business bank accounts that suit your needs.
- Step-by-step guidance: Our experts provide personalized support, from preparing documents to navigating compliance requirements.
- Access to educational resources: Finklusiv offers trainings, guides, and resources to help you understand Denmark’s banking system and financial regulations.
- Advocates for financial inclusion: As a platform dedicated to promoting financial inclusion, Finklusiv ensures that all entrepreneurs have equal access to essential financial services.
Conclusion
Choosing the best business bank account is a critical step for entrepreneurs in Denmark. By comparing different options - such as Danske Bank, FasterOikos, Lunar, and others - you can find an account that fits your specific needs and budget. However, the process of opening an account can be daunting for foreign-born entrepreneurs due to strict documentation requirements, language barriers, and compliance checks.
This is where Finklusiv can make all the difference. With their expert guidance and personalized support, Finklusiv simplifies the banking process and connects you with the best solutions for your business.
Visit www.finklusiv.dk/erhvervskonto today to get started on your journey toward financial success in Denmark.
