Is it permitted to run a business from a private residence?

The short answer is YES, you may. However, there are certain things you should be aware of before you get started. Read about the rules for rental housing, owner-occupied housing, and alternatives such as a virtual office.

The short answer is YES, you may.

BUT there are certain things you should be aware of before you get started.

General

As a general rule, it is permitted to carry out a liberal profession in connection with your home, provided that certain conditions are met.

The business must not have employees and must not cause noise, traffic, or other nuisance that exceeds what is normal for a residential area.

Remember to check the municipality’s easements and local plan to see whether the business complies with the applicable framework for the area.

Typically, it will be prohibited to operate a shop, a trade, or a manufacturing business if the area is designated as residential. You should therefore contact your municipality’s technical department to obtain permission and for registration in the BBR and the building case file for your property.

Rental housing

If you live in a rented home, you must obtain the landlord’s approval before you set up your business.

Public housing tenancies

As a general rule, a public housing tenancy may only be used for residential purposes pursuant to the Danish Act on the Rental of Public Housing, section 79. However, there are examples where permission has been granted for, for example, childminding services.

Contact your housing association before you begin setting up your business at a private address if you live in public housing, otherwise you risk having your tenancy terminated.

Owner-occupied home or cooperative housing

Contact the owners’ association or the cooperative housing association to clarify whether it is permitted to run a business, so you do not suddenly face an unpleasant surprise.

If you have employees

In areas designated for residential purposes, it may be prohibited to have employees. Contact the municipality to learn the exact rules in your area.

Remember that when you hire staff, you must prepare a workplace assessment (APV), even if it is in a private home. However, it is easy to find a template online.

What is the alternative?

If you are not permitted to, or do not wish to, have your business registered at your private address, you can use an address service / Virtual Office.

An address service is a virtual company address that you can use to register your business and which, of course, may also be used for your marketing, etc.

Is a virtual company address legal?

Yes, but there must be a representative for your company at the address who can contact you. Therefore, you cannot simply use a PO box as a company address.

The provider of a Virtual Office must be registered pursuant to the Danish Anti-Money Laundering Act. You can check on cvr.dk whether they are.

Would you like to avoid problems with running a business from your home? A virtual office with Flexum Coworking gives you a professional company address without breaching the Danish Rent Act.

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