Many artists today face major challenges when setting up a business bank account. They run up against the wall that is the banks' strict requirements. Even though you're legally entitled to a basic business account, the banks still have the final say - and they can say no.

Conversely, banks may also require you to open a business account with them - and this can cost you dearly.

The Danish Parliament has now passed a law, designed to ensure faster responses and less bureaucracy when self-employed people apply for a business account. But how does it work in practice? And what do you do if the bank still closes the door? Or requires you to set up an expensive account?

What is a business account?

A business account - also called a corporate account or company account - is an account linked to your company's VAT number. It is the business equivalent of a personal account and is used to manage income and expenses.

For artists and the self-employed, a business account can be essential for receiving payment for gigs, tuition, royalties or merchandise. It can also make it easier to keep track of VAT, tax and accounting and keep it separate from your personal finances.

What do the new rules say?

From January 2025, businesses will be entitled to a basic business account at one of the eight largest financial institutions. The bank should now process your application within 10 business days, provided you have provided the necessary information.

However, the bank can still reject the application if, for example, there is suspicion of money laundering. In that case, the new rules require the bank to give reasons and you will have the opportunity to appeal the rejection.

How much does it cost?
A business account is far from free. Most banks charge thousands of dollars a year in fees and you need a company registration number to open one. Prices for business accounts vary considerably, both when it comes to setting up and annual operation. At the bottom of the article you can see an overview of prices from ten different banks.

When is it a requirement?

There is no general legal requirement for self-employed people to have a business account. You must have an account that the authorities can pay money into, but it doesn't necessarily have to be an actual business account; a private account may be sufficient in some cases.

Nevertheless, many members find that their bank requires them to open a business account. When they make the requirement, they often refer to having to comply with money laundering regulations, which was tightened in 2017.

According to our members, some banks have also introduced limits: for example, if you receive more than DKK 50,000 in your personal account, the bank may require you to switch to a business account with them. In some cases, members have even had their personal accounts closed because they wouldn't comply with the bank's demand to open a business account.

Advice from the Danish Artist Association:

It is the union's legal judgement that:

  • Many members who work as freelancers or contractors without a company registration number are mistakenly required to set up a business account.
  • If there is no real business activity, the bank is not authorised to require the opening of a business account.
  • Members in doubt should contact the union for legal advice before accepting the bank's claim.

If your bank requires this, you should ask for a written explanation and check if other banks have the same practice.

"We recommend that you always get a written justification of the banks' requirements and compare terms with other banks," says legal consultant Andreas Ring Andersen.

If you have experienced this challenge and need help, please contact our legal consultant, Andreas Ring Andersen, at ara@artisten.dk with any questions.


Prices for business accounts vary significantly

A business account is far from free. Most banks charge both a set-up fee and ongoing costs, which can quickly add up to thousands of dollars annually.

Bank Creation Annual cost First year cost
Lunar 995 kr. 2,890 kr. 3,885 kr.
Broager Savings Bank 2,500 kr. 1,800 kr. 4,300 kr.
Nykredit 3,000 kr. 1,428 kr. 4,428 kr.
Danske Bank 4,000 kr. 1,860 kr. 5,428 kr.
Sydbank 3,895 kr. 1,860 kr. 5,755 kr.
Arbejdernes Landsbank 3,000 kr. 3,000 kr. 6,000 kr.
Møns Bank 3,500 kr. 2,800 kr. 6,300 kr.
Jyske Bank 4,000 kr. 2,600 kr. 6,600 kr.
Nordea 4,800 kr. 1,980 kr. 6,780 kr.
Fynske Bank 5,000 kr. 2,388 kr. 7,388 kr.
(Source: Samlino, 2024)

Only the eight largest banks are obliged to offer a basic business account: Danske Bank, Nykredit Bank, Jyske Bank, Nordea, Sydbank, Spar Nord, Arbejdernes Landsbank and Vestjysk Bank. At Spar Nord and Vestjysk Bank, the price depends on individual assessment and therefore there are no public tariffs.

More banks will be obligated
In a written response, the Ministry of Business and Industry states:
"The banks that are obliged to offer a basic business account are the so-called SIFI banks. In addition, the Danish FSA will designate a number of larger banks that must also offer a basic business account if they already offer a business account to other companies and associations."

The executive order designating the institutions is expected to enter into force on 1 July 2025.