Registering a business in Denmark: nuances worth considering

• stable economy: Denmark has a stable and developed economy with a high standard of living. This creates a favorable environment for business.
• favorable tax legislation: Denmark offers relatively low tax rates for companies and investors. This includes standard income taxes, as well as special tax credit programs for research and development, which can be important for startups.
• innovation ecosystem: Denmark is renowned for its innovative culture and strong startup ecosystem. There are many incubators, accelerators and other organizations that provide support to entrepreneurs.
• access to finance: It’s relatively easy to get funding for startups in Denmark. There are various sources of funding, including government programs, venture capital and others.
• qualified labor market: Denmark has an educated and highly skilled labor market, which can be important for innovation-oriented companies.
• environmental emphasis: Denmark places great emphasis on sustainability and the environment. This could be an important factor for cleantech and green innovation startups.

These factors combine to create an attractive environment for entrepreneurship and stimulate the development of the start-up community in Denmark. However, before registering a business, it is recommended to seek advice from local experts and familiarize yourself with the specific conditions and requirements for a particular industry.

Registering a business in Denmark — algorithm of actions

To register a business in Denmark, including for foreign citizens, there are several steps and conditions. Here is some general information that may be useful:

choosing a business form:

• it is necessary to select a form of enterprise, such as joint stock company (A/S), limited liability company (ApS), branch or representative office.

obtaining a unique identification number (CVR):

• To register a company you will need a unique identification number known as CVR (Central Business Register). This is the main number for business in Denmark.

opening a bank account:

• A bank account for the company must be opened in one of the local banks.

choosing a company name:

• • the name for the company must be unique. One that is not used by other registered companies.

filling out the necessary documents:

• including the company’s articles of association, information about directors, shareholders, application for registration of the company at the registration office in accordance with the formalities.

registration fee:

• You are usually required to pay a registration fee when submitting your documents.

obtaining a CVR registration certificate:

• After successful registration, company managers receive a CVR registration certificate.

Experts note that Denmark is loyal to any foreign citizens who want to do business in the country. There are no officially announced restrictive measures. However, it is important to note that in order to become a “Danish entrepreneur”, you must fulfill the minimum requirements exactly. It is important to consider the following:

• If you plan to be physically in Denmark to run a business, you may need a visa and work permit.
• foreign entrepreneurs are also required to comply with tax laws and obligations in Denmark.

It is recommended that you consult with a local attorney or business consultant to obtain more accurate and detailed information about specific requirements and procedures, especially as legal changes may occur.

Business in Denmark: local specialists in the team is a big plus

And here are a few more reasons why this approach can be useful:

Accounting:

• local accountants have experience in maintaining accounting records in accordance with local standards and are thoroughly familiar with accounting programs, which are tools that allow you to optimize and streamline financial reporting. This is, of course, important to comply with tax obligations and avoid potential problems.

Language support:

• Working with local specialists provides language support, which can be important, especially if you don’t speak Danish.

Local connections:

• Local experts typically have connections with authorities, banks and other institutions, which can simplify work processes and ensure more efficient business operations.

Adaptation to local realities:

• local experts can help your company better adapt to local conditions, culture and business practices.

A general approach to hiring local talent is often seen as an advantage, especially for foreign companies. However, this also depends on the specific needs of the business and the ability of managers to manage processes on site. It is recommended that you consult with local experts and business consultants to determine the best approach for each specific situation.

How difficult is it to register a business in Denmark?

The process of registering a business in Denmark is usually quite transparent and relatively easy to follow. However, the degree of complexity may vary depending on a number of factors, such as the type of business, company size, presence of foreign investors, etc. That is why, in order to facilitate the process and avoid mistakes, many entrepreneurs turn to local consultants or lawyers for help.

Also because most documents and processes, of course, are drawn up and conducted in Danish. Both when registering a company and as part of its main activities. Including, everything works in the state language accounting programs.

Business areas worth doing in Denmark