Doing Business with Denmark

A comprehensive guide to doing business, exporting, investing, and manufacturing in Denmark.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Invest in Denmark

Tel: +45 33 92 11 16
Email: invest@um.dk
Web: www.investindk.com

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Danish Customs Agency (Toldstyrelsen)

Tel: +45 72 22 12 12
Email: told@toldst.dk
Web: www.toldst.dk

National Chamber of Commerce

Danish Chamber of Commerce (Dansk Erhverv)

Tel: +45 33 74 60 00
Email: info@danskerhverv.dk
Web: www.danskerhverv.dk

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Ministry of Finance (Finansministeriet)

Phone: +45 33 92 33 33
Email:
fm@fm.dk
Web: www.fm.dk

  • Type of Government: Constitutional monarchy
  • Population: Approximately 5.8 million
  • GDP: Around $400 billion USD
  • Corporate Tax Rate: 22%
  • Personal Income Tax Rate: Progressive, up to 55.9%
  • Major Exports: Pharmaceuticals, machinery, food products
  • Major Imports: Machinery, chemicals, crude oil

 

Exporting to Denmark involves several important steps. Here’s a detailed guide:

  1. Conduct Market Research

    • Identify demand for your product in Denmark.
    • Understand the competitive landscape and industry standards.
  2. Verify Export Regulations

    • Ensure compliance with both your country’s and Denmark’s regulations.
    • Check for any specific product certifications or standards required by the EU.
  3. Find Local Partners

    • Identify and establish relationships with local distributors or agents.
  4. Prepare Export Documentation

    • Include commercial invoices, packing lists, and certificates of origin.
    • Ensure documents meet Danish customs requirements.
  5. Arrange Logistics and Shipping

    • Choose a reliable shipping company experienced with Danish imports.
    • Ensure shipping documents, such as bills of lading, are completed accurately.
  6. Customs Clearance

    • Work with a customs broker to facilitate the clearance process.
    • Pay any necessary duties and taxes required for import.
  7. Distribution and Sales

    • Establish distribution channels within Denmark.
    • Consider partnerships with local businesses for effective market penetration.

Key Contacts

Importing goods into Denmark involves several important steps. Here’s a detailed guide:

  1. Conduct Market Research

    • Analyze demand for the goods you wish to import.
    • Understand the competitive landscape and consumer preferences in Denmark.
  2. Verify Import Regulations

    • Ensure compliance with Danish and EU import regulations and standards.
    • Check for any required licenses or certifications for your products.
  3. Find a Reliable Supplier

    • Establish relationships with reputable suppliers who meet Danish standards.
  4. Prepare Import Documentation

    • Include commercial invoices, packing lists, and certificates of origin.
    • Ensure all documents meet Danish customs requirements.
  5. Arrange Logistics and Shipping

    • Select a reliable shipping company experienced with Danish imports.
    • Ensure shipping documents, such as bills of lading, are completed accurately.
  6. Customs Clearance

    • Engage a customs broker to facilitate the clearance process.
    • Pay any necessary duties and taxes required for import.
  7. Comply with Health and Safety Standards

    • Ensure products meet health and safety standards set by Danish authorities.
  8. Distribution and Sales

    • Organize distribution channels for your goods in Denmark.
    • Build relationships with local retailers or wholesalers.

Key Contacts

  • Danish Customs and Tax Administration (SKAT)
  • Danish Veterinary and Food Administration
  • Ministry of Foreign Affairs of Denmark

Incorporating a company in Denmark involves several key steps. Here’s a detailed guide:

  1. Choose a Company Name

    • Ensure the name is unique and complies with Danish naming regulations.
    • Check availability via the Danish Business Authority.
  2. Select a Business Structure

    • Decide on the type of company, such as ApS (private limited company) or A/S (public limited company).
  3. Prepare Incorporation Documents

    • Draft the articles of association.
    • Include details of shareholders, directors, and company secretary.
  4. Deposit Share Capital

    • Minimum share capital for an ApS is DKK 40,000.
    • Deposit the capital in a Danish bank account.
  5. Register the Company

    • Register with the Danish Business Authority through the online platform Virk.dk.
    • Submit the incorporation documents and proof of capital deposit.
  6. Pay Registration Fees

    • Approximately DKK 670 for online registration.
  7. Obtain a Central Business Registration (CVR) Number

    • Automatically assigned upon successful registration.
  8. Register for Taxes and VAT

    • Register with the Danish Tax Agency for VAT and other taxes.
  9. Comply with Employment Regulations

    • If hiring employees, register for social security and insurance.

Key Contacts

Setting up a manufacturing plant in Denmark involves several important steps. Here’s a detailed guide:

  1. Conduct Market Research

    • Analyze local demand and industry trends.
    • Evaluate potential competitors and supply chain logistics.
  2. Choose a Suitable Location

    • Identify industrial zones with necessary infrastructure.
    • Contact local government or industrial parks for available sites and potential incentives.
  3. Understand Legal Requirements

    • Familiarize yourself with Danish investment laws and regulations.
    • Decide on the business structure, such as a private limited company (ApS).
  4. Develop a Business Plan

    • Prepare a detailed proposal outlining your investment, objectives, and operations.
    • Include financial projections and environmental impact assessments.
  5. Register the Business

    • Register your company with the Danish Business Authority via Virk.dk.
    • Obtain a Central Business Registration (CVR) number.
  6. Secure Financing

    • Explore funding options through banks or investment agencies.
    • Consider government incentives for manufacturing.
  7. Design and Construct the Facility

    • Hire architects and contractors familiar with local regulations.
    • Ensure compliance with building codes and safety standards.
  8. Install Equipment and Machinery

    • Import necessary machinery, ensuring compliance with local regulations.
    • Coordinate with customs for smooth importation.
  9. Obtain Necessary Permits and Licenses

    • Apply for industry-specific licenses and permits.
    • Ensure compliance with health and safety regulations.
  10. Recruit and Train Staff

    • Hire local talent and provide necessary training.
    • Work with Danish employment agencies for assistance.
  11. Begin Operations

    • Ensure all systems are in place and test the production line.
    • Implement quality control measures.

Key Contacts

Registering a trademark in Denmark involves several steps to ensure legal protection. Here’s a detailed guide:

  1. Conduct a Trademark Search

    • Check the availability of your trademark via the Danish Patent and Trademark Office’s online database.
  2. Prepare Your Application

    • Gather necessary information: trademark design, goods/services classification, and applicant details.
  3. Submit Your Application

    • File the application online through the Danish Patent and Trademark Office.
    • Ensure all required information is complete and accurate.
  4. Pay the Application Fee

    • The basic fee is approximately DKK 2,350 for one class.
    • Additional fees apply for each extra class.
  5. Examination Process

    • The office reviews the application for compliance and potential conflicts.
    • Respond promptly to any objections or requests for additional information.
  6. Publication and Opposition

    • If approved, the trademark is published for opposition.
    • There is a two-month period for third parties to oppose the registration.
  7. Registration and Certification

    • If no oppositions arise, the trademark is registered.
    • Receive a certificate of registration.
  8. Maintain and Renew the Trademark

    • Trademarks are valid for 10 years and can be renewed indefinitely.
    • Submit renewal applications before expiry to maintain protection.

Key Contacts

Resolving commercial disputes in Denmark involves several steps and options. Here’s a guide on the process:

  1. Attempt Negotiation

    • Begin by negotiating directly with the other party to find an amicable solution.
  2. Mediation

    • Engage a mediator to facilitate discussions.
    • Mediation is often quicker and less formal than court proceedings.
  3. Arbitration

    • Consider arbitration as a private dispute resolution method.
    • Provides a structured yet flexible approach to resolving disputes.
  4. Seek Legal Advice

    • Consult with a lawyer specializing in Danish commercial law for guidance on your case.
  5. File a Lawsuit

    • If other methods fail, file a lawsuit in the appropriate Danish court.
    • Prepare necessary documentation and evidence.
  6. Court Proceedings

    • Attend hearings and present your case.
    • Follow the legal procedures as guided by your attorney.
  7. Judgment and Enforcement

    • If a judgment is made, ensure its enforcement through legal channels.

Costs

  • Mediation and Arbitration Fees: Vary depending on the service provider.
  • Court Filing Fees: Depend on the jurisdiction and case type; consult local courts.
  • Legal Fees: Vary based on the lawyer and complexity of the case.

Key Contacts

When considering doing business in Denmark, it’s important to understand various factors that can influence operations. Here’s an overview:

Social and Cultural Factors

  • Language and Communication
    • The official language is Danish. English is widely spoken in business settings.
    • Building relationships and trust is essential in business dealings.
  • Business Etiquette
    • Formal greetings and punctuality are important.
    • Decision-making can be consensus-driven, reflecting Denmark’s egalitarian culture.

Political Environment

  • Government Structure
    • Denmark is a constitutional monarchy with a stable political climate.
    • The government is supportive of foreign investment and innovation.
  • Regulatory Environment
    • As an EU member, Denmark adheres to EU regulations and standards.
    • Transparent regulatory framework with strong anti-corruption measures.

Economic and Foreign Exchange Factors

  • Currency
    • The currency is the Danish krone (DKK).
    • Denmark has a strong economy with a focus on technology, pharmaceuticals, and renewable energy.
  • Investment Climate
    • Offers various incentives for foreign investors.
    • Ranked highly for ease of doing business.

Rule of Law

  • Legal System
    • Based on civil law principles.
    • Strong protection of property rights and contract enforcement.
  • Intellectual Property
    • Well-developed IP laws aligned with EU standards.

Infrastructure

  • Transportation and Logistics
    • Modern infrastructure with efficient roads, railways, and airports.
    • Advanced telecommunications networks.

Relevant URLs

Our Members Include Leading Organizations in Denmark

Ask our Experts on Doing Business in/with Denmark

If you’re looking to do business or invest in Denmark, we can provide expert guidance, market insights, and valuable connections to help you navigate the local landscape. Contact us today to discover how we can assist in making your venture a success.