Doing business

Denmark

Print the page Click to print the page

Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Anpartselskab (ApS) is a Private Limited Company Minimum DKK 80,000 totally subscribed and released.	One or more Liability is limited to the amount contributed.
Aktieselskab ( A/S) is a public limited company. Minimum DKK 500,000 totally subscribed and released.	One or more Liability is limited to the amount contributed.
Interessentskab ( I/S) is a general partnership. No minimum capital.	Minimum 2 partners. Partners' liability is indefinite and several.
Kommanditselskab ( K/S) is a limited partnership. No minimum capital.	Two types of partners: active partners and sleeping partners Liability of active partners is unlimited. Liability of sleeping partners is limited to the amount contributed.

Business setup procedures

Setting up a company	Denmark	OECD
Procedures (number)	4.0	5.6
Time (days)	6.0	13.8

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Denmark.
Central Business Register (CVR)
The competent organization: The Danish Commerce and Companies Agency (DCCA) handles the registration of the company and issues a CVR-number.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	2,717	2,966	-1,814
FDI stock (millions USD)	150,937.6	152,521.1	139,205.1
Performance Index*, ranking on 141 economies	125	66	-
Potential Index**, ranking on 141 economies	24	-	-
Number of Greenfield investments***	65	36	-
FDI inwards (in % of GFCF****)	3.8	8.0	-
FDI stock (in % of GDP)	44.3	50.9	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Denmark

Strong points: This Scandinavian state's main advantages are:
- A skilled and multilingual workforce;
- Political stability;
- A high purchasing power;
- Well developed infrastructures;
- Great flexibility;
- One of the most advanced telecommunication infrastructures in Europe. The country is a world leader in the use of PCs, Internet and Broadband; and
- A relatively low company taxation rate (25%). Aditionally, expatriates can benefit from a special tax regime.
Weak points: The country's main weak points are:
- A relatively high income tax rate;
- A limited domestic market;
- An economic system that is too dependent on the international situation; and
- A currently damages economy.
Government measures to motivate or restrict FDI: The laws and regulations implemented by the government in recent years are orientated towards more openness and are non-discriminatory. The Danish government has concentrated its efforts on the improvement of general investment conditions and on reducing structural obstacles to market access. Significant progress has been made in privatization, de-monopolization and competitiveness.
In the eyes of the investors, Denmark has the advantage of being strategically geographically situated. It is a natural doorway to Scandinavian countries and the Baltic region.
Bilateral investment conventions signed by Denmark: As of December 2004, Denmark has concluded investment protection agreements with the following 41 countries: Albania, Argentina, Bolivia, Bulgaria, Czech Republic, Chile, China, Croatia, Egypt, Estonia, Ghana, Hong Kong, Hungary, India, Indonesia, Latvia, Lithuania, Malaysia, Mexico, Mongolia, Mozambique, Nicaragua, North Korea, Pakistan, Peru, the Philippines, Poland, Romania, Russia, Slovakia, Slovenia, South Korea, Sri Lanka, South Africa, Tanzania, Tunisia, Turkey, Ukraine, Venezuela, Vietnam, and Zimbabwe.

Procedures relative to foreign investment

Freedom of establishment: High.
Acquisition of holdings: A majority holding interest in the capital of a local company is authorized.
Competent organization for the declaration

Finding assistance for further information

Investment aid agency: Invest in Denmark
Federation of Danish Investment Associations
Other useful resources: Danish statistics
Ministry of economic and business affairs