Glossary
Sole proprietorship
A sole proprietorship is the simplest form of business: no share capital, no annual report to the Danish Business Authority, and the profit is your income. The price is that you are personally liable for everything the business owes, and that the business's and your own finances must be kept strictly apart in the books. In Danish it is an enkeltmandsvirksomhed.
Updated 21 October 2026
What is a sole proprietorship?
The business is registered on virk.dk and receives a CVR number, and it must keep books under the Bookkeeping Act and file VAT returns when it is VAT-registered. The profit is taxed with the owner as personal income, and the owner can opt for the business tax scheme (virksomhedsordningen) to even out the taxation. There is no salary to the owner; what the owner takes out is drawings, booked on equity.
Example: a photographer invoices 300,000 kr. in a year and has 80,000 kr. in costs. The profit of 220,000 kr. goes into her personal income, however much she has drawn. If a private bank account is used for the business, the private entries have to be kept out of the accounts, which is why a separate account makes the bookkeeping easier.
Sole proprietorship in Veneti
In Veneti you connect the bank with MitID in your personal or business online banking and choose which account to fetch transactions from, and from which date; an account used for the business alone makes the bookkeeping simplest: Banking and coding. The chart of accounts and VAT codes are ready from day one, and the VAT return is calculated from the books.
The Free plan requires no payment details and includes 5 vouchers per month pooled over the year: Pricing. More about the business form: Veneti for sole proprietorships.
Related terms
- ApS: the alternative with limited liability.
- CVR number: the business's number, even without a company.
- Output VAT and input VAT: the VAT that has to be reported.