Read more about how you earn benefit rights and how the calculation of benefit rates for self-employed persons are done.
How to gain benefit rights
How we calculate your rate
- the so-called minimum rate no longer applies from 1 October 2018 and
- income already used for calculating your rate cannot be used for calculating a new rate.
How to get your business considered as closed down
From 1 October 2018 it will be easier to close down an own business and gain benefit rights:
Certificate of termination
Your business is considered closed down when it has been registrered as such with the Central Business Register (CVR) and you have presented a so-called certificate of termination from the Danish Business Authority (Erhvervsstyrelsen).
If you are unable to present a certificate of termination because your business is not yet fully liquidated, it will be considered closed down when we receive your solemn declaration that the business is no longer operating.
The hours you spend liquidating the business will result in deductions in your benefits. You need to document within 6 months that the business is closed down. If you are unable to do this, you cannot receive benefits before you have submitted a certificate of termination or a similar document.
Conversion of a company to a holding company
If you can document the termination of business activity, your business may be considered closed down when you have changed its objects clause to the administration of assets and documented this with records from the Danish Business Authority (Erhvervsstyrelsen).
Your business is considered closed down if it has gone bankrupt or has been sold at foreclosure sale.
If you have leased or rented out your business under a mutually irrevocable contract for at least 3 years, it is considered closed down as far as you are concerned.
Your business is carried on by your spouse
If you were an assisting spouse, the business is considered closed down as far as you are concerned when you declare solemnly that you have resigned from your spouse’s business.
Your business is carried on by your partner(s)
Your business is considered closed down when you resign as a business partner, and the Danish Business Authority (Erhvervsstyrelsen) has registered that you are no longer an owner.
If you continue as a partner, we will consider your business closed down when you present proof of registration from the tax authorities (SKAT) that ownership of the business has changed, indicating that you no longer have decisive influence on the company. You are seen to have decisive influence for example if you own at least 50% of company capital or hold a controlling share of shareholders’ votes. The change in ownership must also be registered with the Danish Business Authority.
You are not entitled to benefits until a waiting period has passed (previously “karens for selvstændige”)
If you stop running your own business as a main occupation, you cannot receive benefits until after a so-called waiting period. The waiting period always counts from the day after you have documented that your business is closed down.
The waiting period is generally 3 weeks, but if the closure is caused by bankruptcy or foreclosure sale, it may be reduced to 1 week. However, the waiting period is 2 months if the closure is attested in a solemn declaration. If you submit a certificate of termination to us before the 2 months have passed, you are entitled to benefits from the following day, although at least 3 weeks must have passed from the day we received your solemn declaration.
Your right to start a new business will be limited
Job search period
From 1 October 2018, a new rule introduces a so-called job search period of 6 months from the termination of an own business as the main occupation.
You will not be entitled to benefits in this period if you start a new business, whether as a main or secondary occupation. If you choose to go ahead despite the rule, you will be excluded from receiving benefits until 6 months have passed.
The rule on a job search period does not apply if you close down because of bankruptcy or the termination of own business as a secondary occupation.
No more than one termination per benefit period
From 1 October 2018 a new rule is introduced permitting only one termination of an own business for each benefit period. However, any termination that may have occurred before you gain the right to a 2-year benefit period is not included.
This means that if you start a new business (Business 1) in your benefit period and then close it, the closing-down of a potential new business (Business 2) will result in a loss of benefit rights. This new rule applies to own businesses, but not to spare-time activities.
You should consider the advantages of changing your business into a spare-time activity og wealth management. Read more in the blue box below.
When is an activity considered an own business?
In general your activity is considered as self-employment if:
- You have a central business register (CVR) number. If your VAT-attracting (momspligtige) turnover is least 50,000 kr. over a 12-month period, you must also have a VAT number
- The activity aims at generating a profit
- You yourself work in the activity.
Contact the tax authorities if you are in doubt whether your activity is considered an own business.