For some time, Caroline has made jewellery and sold it from her home. Sales are good and the materials take up a lot of space, so Caroline rents premises in town and opens a shop where she makes and sells her jewellery. Caroline still has her full-time job on the side and as a result her shop is only open between 4.00 p.m. and 6.30 pm four days a week. Despite advertising in the local newspaper once a month and being present at local markets, Caroline's income is insufficient to cover her costs.

Our assessment

Caroline's business is non-commercial. Caroline incurs a financial risk, but she does not put a great deal of effort into running the shop. Staying open for a few hours four times a week is not enough to generate sufficient revenue to cover her expenses. Nor is there a prospect of the business making a profit.

Charlotte is a well-known, professionally qualified artist. Over the years, Charlotte has nearly always filed a loss on her income tax return, but the year before last she made a profit of DKK 25,317. Despite exhibiting her work since 2007, Charlotte has only made a modest income.

Our assessment

Charlotte's business is non-commercial. The business does not meet the usual criteria for an independent commercial business. The business is of limited scope and was not set up with a view to making a profit capable of offsetting the efforts and capital Charlotte invests in her business.

Martin runs a small farm of 11 hectares. He grew up on the farm, and its location is key to him and his family. Martin grows crops and breeds pigs and he has a part-time job. His business operates at a loss.

Our assessment

Martin's business is non-commercial. Despite being run in a technically/agriculturally customary and responsible manner, the farm is unlikely to generate a profit.


Please see our legal guide (in Danish) for further legal information.