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If you’re planning to start a new business in Denmark or expand your UK or EU/EEA-registered company to operate more efficiently in Denmark, you’ll need to register your organization with the Danish Business Authority. Fortunately, if you already have an EU/EEA business or possess a Danish work and residence permit, this process is relatively straightforward.

This guide will walk you through the steps of starting a business in Denmark as a foreigner, including the necessary procedures and documentation. Additionally, we’ll introduce Wise Business as an effective solution for managing your finances in Denmark and beyond.

Doing Business in Denmark

Before diving into the details of starting a business in Denmark, let’s consider why Denmark could be an ideal location for your business.

Danish business culture is known for its emphasis on equality among employees and a relaxed, informal work environment that encourages a healthy work-life balance. The Danish government actively supports innovative entrepreneurs and startups, making the country an attractive destination for business ventures.

Denmark boasts a diverse economy with strong sectors in services, construction, IT, manufacturing, agriculture, and more. If you have a viable business idea or an existing business that could benefit from international expansion, Denmark might be the perfect place for you.

Danish Business Authority

The Danish Business Authority oversees business regulations, processes, and the Central Business Register, which is similar to the UK’s Companies House. The Authority also provides guidance on public services, regulations, digital bookkeeping, reporting, and more.

Denmark Company Register

Denmark offers several types of business entities, allowing you to choose the one that best fits your needs. The available options include:

• Public limited liability company (A/S)
• Private limited liability company (ApS)
• Limited partnership company (P/S)
• Cooperative society with limited liability (A.M.B.A.)
• Association with limited liability
• Sole proprietorship
• Limited partnership (K/S)
• Partnership (I/S)

Each business type has specific requirements and benefits, so it’s essential to understand which one aligns with your business goals.

How to Start a Business in Denmark – Step-by-Step

If you do not have a business registered in the EU or EEA, you may need to apply for a work and residence permit before establishing a business in Denmark. However, if you already have an EU/EEA business, the process is simpler. You’ll need to register online with the Danish Business Authority and obtain a CVR number, which is your business registration number. This information will then be automatically forwarded to the tax authorities.

A work or residence permit may be necessary because the Danish Business Authority requires a NemID (Danish digital signature), which can be obtained after securing a residence or work permit. Once you have these prerequisites, the registration process is relatively quick.

To set up an A/S or ApS business entity, you’ll need the following:

• Memorandum of Association
• Articles of Association
• Share Capital deposit (amount depends on entity type)

These documents can be drafted in English, and no notary approval is required.

FAQs About Starting a Business in Denmark

How much does it cost to start a business in Denmark?

The government fee for registering an A/S or ApS business is 670 DKK (approximately £77). This fee is waived for certain business types, including sole proprietorships, partnerships, and associations. Other fees may apply based on the entity type and sector, and you may also need to deposit share capital as part of the registration process.

Is it easy to start a business in Denmark?

Yes, if you have a Danish work and residence permit or an EU/EEA-registered business, setting up a business in Denmark is straightforward. There are many resources available to help, such as the Copenhagen Business Hub for training and support.

Is Denmark startup-friendly?

Denmark is known for being supportive of startups, and the government offers a visa program for non-EU nationals who want to establish startups in the country.

Managing Your Danish Company’s Finances with Wise Business

Expanding your business to Denmark can be an exciting opportunity, but managing finances across currencies can be challenging. Wise Business offers a flexible, low-cost multi-currency account, allowing you to hold and exchange over 40 currencies with low fees and the mid-market exchange rate.

With Wise Business, you can obtain local bank details for major currencies, making it easy to receive payments from customers or platforms like Stripe and Amazon. The account also includes linked debit and expense cards, multi-user access, batch payment tools, and cloud accounting integrations.

To open a Wise Business account:

1. Download the Wise app or visit the Wise website.
2. Register and follow the prompts to apply for a business account.
3. Provide your personal and contact information.
4. Upload the necessary documents.
5. Pay a one-time fee to register your account and obtain a linked payment card if needed.

Once your account is verified, you can start transacting immediately.

This guide should help you navigate the process of starting a business in Denmark. Once you’ve chosen the right path, Wise Business can help you manage your company’s finances efficiently, ensuring you minimize fees and costs when converting between currencies.

For businesses outside Europe looking to enter the European market, Denmark presents an ideal testing ground. With its strategic location, advanced infrastructure, and consumer behavior that mirrors broader European trends, Denmark offers several unique advantages as a test market.

First, Denmark’s geographical position is a significant asset. Located in Northern Europe, Denmark acts as a gateway to both Scandinavian and wider European markets. This proximity allows businesses to easily expand into neighboring countries such as Sweden, Norway, and Germany once their initial operations are established. The country’s excellent transport links, including ports, airports, bridges, and road networks, facilitate efficient logistics and distribution, which is crucial for testing supply chain strategies.

Secondly, Denmark boasts a highly developed economy with a strong emphasis on technology and innovation. The country is renowned for its digital infrastructure, ranking among the top in global internet penetration and mobile usage. This digital readiness makes Denmark an excellent market for testing e-commerce platforms, digital marketing strategies, and technological innovations. The tech-savvy population provides valuable insights into the acceptance and performance of new technologies.

Furthermore, Denmark’s consumer base is affluent and well-educated, with a strong inclination towards sustainability and high-quality products. Danish consumers are known for their openness to new ideas and products, making them ideal for gauging consumer response and refining offerings before a broader European rollout. The country’s diverse population also provides a microcosm of European consumer preferences, making it possible to test and adapt products to suit various tastes and expectations.

Another advantage is Denmark’s business-friendly environment. The country ranks highly on ease-of-doing-business indices, thanks to transparent regulations, low corruption levels, and supportive government policies for startups and foreign investments. Setting up a business in Denmark is straightforward, allowing companies to focus on testing and refining their business processes rather than navigating bureaucratic hurdles.

In summary, Denmark offers a strategic, technologically advanced, and consumer-conscious market, making it an excellent choice for businesses looking to test and refine their European market entry strategies. By starting in Denmark, companies can gain valuable insights and build a strong foundation for successful expansion across Europe.

For US businesses aiming to expand operations into Europe, Denmark presents an attractive starting point. Here are several compelling reasons why Denmark serves as an ideal spearhead for transatlantic business ventures:

Strategic Location and Connectivity

Denmark’s strategic geographical position offers seamless access to the European market. Located in the heart of Northern Europe, Denmark provides excellent connectivity to major European cities via its well-developed transportation network. Copenhagen Airport, a leading hub in Scandinavia, ensures efficient logistics and travel, facilitating smooth business operations across the continent.

Business-Friendly Environment

Denmark consistently ranks high on global indices for ease of doing business. The country’s transparent regulatory framework, minimal bureaucratic hurdles, and efficient administrative processes make it easier for US companies to establish and operate their European subsidiaries. Denmark’s flexible labor market and supportive government policies further enhance its business-friendly environment.

Highly Skilled Workforce

The Danish workforce is known for its high level of education and proficiency in English, which is widely spoken and used in business contexts. This reduces language barriers and enhances communication within the business and with clients and partners across Europe. The strong emphasis on innovation and technical skills also ensures a competent and adaptable workforce.

Innovation and Technology Hub

Denmark is renowned for its robust innovation ecosystem. The country invests significantly in research and development, making it a hub for technological advancements. US businesses in tech, biotech, green energy, and other innovative sectors can leverage Denmark’s cutting-edge infrastructure, extensive R&D networks, and collaborative opportunities with leading universities and research institutions.

Sustainable Business Practices

Denmark is a global leader in sustainability and green technology. Businesses focusing on sustainability can benefit from Denmark’s advanced renewable energy infrastructure, supportive regulatory environment, and strong societal commitment to sustainable practices. This aligns well with the growing global emphasis on corporate social responsibility and sustainable development.

Quality of Life

Denmark offers a high quality of life, with excellent healthcare, education, and social services. A stable and secure environment ensures that employees can thrive, both professionally and personally, making it an attractive destination for international talent.

In summary, Denmark’s strategic location, business-friendly environment, skilled workforce, innovation capacity, commitment to sustainability, and high quality of life collectively make it an ideal launchpad for US businesses seeking to establish and expand their operations in Europe.

Why Register:

1. Legal Compliance: Registering for import and export in Denmark ensures compliance with national and EU regulations governing international trade, including customs procedures, tariffs, and trade agreements.
2. Customs Clearance: Registered businesses have access to simplified customs procedures, making it easier to import goods into Denmark and export goods to other countries without delays or complications.
3. Tax Obligations: Import and export registrations in Denmark come with tax obligations, including value-added tax (VAT) and excise duties. Proper registration ensures businesses meet their tax obligations accurately and timely.
4. Access to Benefits: Registered importers and exporters in Denmark may access benefits such as duty relief, preferential tariff rates under trade agreements, and eligibility for government support programs.

How to Register:

1. Identify Authorities: Determine the relevant Danish authorities responsible for import and export registrations, such as the Danish Customs Agency (Toldstyrelsen) and the Danish Business Authority (Erhvervsstyrelsen).
2. Prepare Documentation: Gather the necessary documentation, including business registration documents, tax identification numbers (CVR), proof of compliance with customs regulations, and any required licenses or permits.
3. Submit Application: Complete the registration application forms provided by the relevant authorities and submit them along with the required documentation. Applications can usually be submitted electronically through the relevant government portals.
4. Await Approval: Upon submission, authorities will review the application and documentation. Once approved, businesses will receive a registration number or certificate confirming their status as importers or exporters in Denmark.

When to Register:

1. Before Commencing Trade: Businesses should register for import and export activities in Denmark before engaging in any international trade transactions to ensure compliance with regulations and avoid penalties.
2. In Advance of Transactions: Registration should be completed well in advance of importing or exporting goods to allow sufficient time for processing and approval by the Danish authorities.
3. Regular Review: Periodically review and update import and export registrations in Denmark to reflect any changes in business operations, such as expanding into new markets or diversifying product lines.

In summary, registering for import and export activities in Denmark is crucial for legal compliance, facilitating customs clearance, meeting tax obligations, and accessing benefits. By following the proper procedures and timelines for registration, businesses can ensure smooth and successful international trade operations.