enkeltmandsudbydere

Enkeltmandsudbydere is a Danish term used to describe individuals who provide goods or services as a single person, i.e., operate as sole proprietors. The concept is commonly applied to microbusinesses where one person is responsible for the enterprise, either under their own name or a registered business name. In Danish practice these entities are typically organized as enketmandsvirksomheder or sole proprietorships rather than as a limited company, and they are not separate legal entities from their owners.

Registration and regulation: In Denmark, a sole proprietor is registered with the Danish Business Authority via Virk.dk and the Central Business Register (CVR). The owner invoices clients and reports income on their personal tax return. VAT registration is required if turnover exceeds thresholds, and accounting can be straightforward, though records must be kept for tax purposes.

Liability and taxation: The owner has unlimited personal liability for business debts. Profits are taxed as personal income, with possible deductions for business expenses and social contributions according to Danish tax rules. If the business grows, more formal structures may be considered to limit liability or facilitate investment.

Advantages and challenges: Enkeltmandsudbydere typically benefit from low startup costs, straightforward setup, and full managerial control, along with simple invoicing. Challenges include unlimited liability, limited access to external capital, and administrative tasks such as bookkeeping and tax filing.

Industry and use: The model is common among freelancers, consultants, tradespeople, and other service providers who prefer autonomy and simplicity. See also: sole proprietorship, Danish business forms.