Denmark is one of the best countries not only in the European region but also in the rest of the world. It is a free-market capitalist economy and loaded with a pool of talented professionals who speak English well, and has a flexible market which makes managing human resources much easier. Besides, there is less litigation than other developed countries. It is equipped with state-of-the-art business infrastructure, reliable supplies of electricity and water, and a well-developed financial system.
All these things make Denmark a favorable business destination for entrepreneurs around the world to set up their own businesses. Apart from the simplified process, Denmark also offers various government-backed schemes and courses run by individual communities as well as centralized organizations to assist foreign investors, startup owners, and entrepreneurs in setting up a new business.
Present Your Idea for Business Setup
The foundation of every small or big business comes from a business idea and this is one thing that you need to start your business. Expat businesses are greatly thriving in Denmark in various sectors right from education facility to quilting and cushioning to physiotherapy and massage.
You are also welcome to think out of the box and come up with some business idea that contributes to society and the economy. Do intensive market study and find answers to the three questions: Is your business idea practical? Is there a customer market for your products or services? Can you earn profit from this idea? If it is Yes to all of them, you are good to go ahead.
Obtain Permissions Required for Business Setup in Denmark
To set up a company in Denmark, you do not need work permit if working remotely from your home country. However if you are looking to live and receive a salary from your company in Denmark, you will need a work permit to run a business in Denmark. However, if you are Nordic, Swiss, or EU/EEA citizen, you will be exempted from this rule because EU citizens have the freedom to work and study in Denmark under EU regulations. As such, you also don’t need a visitor’s visa, residence or work permit. However, you will need to obtain an EU resident document from the State Administration.
In case you are a non-EU citizen, you are required to apply for a work permit and permission and obtain them from the Danish Agency for Labour Retention and International Recruitment.
Decide Your Business Type and Set Up Your Business
Once your business idea is accepted and you get the work permit in Denmark, you need to decide what type of business you want to run. This involves tax implications and your company will also need to register for a CVR (The Danish Central Business Register aka Det Centrale Virksomhedsregister). This is a business number that is used to identify a company and it is also used as VAT registration number.
Depending on the company type, you may have to pay a registration fee as well. However, you can change the type of company later if needed. Some of the different company types are:
- Sole Proprietorship – for a one-man business
- Public Limited Company (A/S) or Aktieselskab
- Private Limited Company (ApS) or Anpartsselskab
When you set up a business in a foreign country, you are also required to understand the rules and regulations of that country, tax implications, available opportunities, and the market. Thus, hiring a business consultant can be very helpful for a successful business setup.
Only in September 2020 package discount:
Company registration, tax registration, online bank account and Registered office address for 1 year – all remotely: 1600 EUR – 20 % = 1280 EUR ex VAT.