Establishing a Business in Denmark

In Denmark, companies can benefit from an easy plug ‘n play registration and be ready to do business within a few hours. Establishing a business in Denmark is both cost- and tax efficient.

Key advantages when setting up a business in Denmark:

• Quick, informal and cost-efficient establishment procedures
• Online registration of new companies means you’re ready to do business within a few hours
• No resident requirements for management, including the CEO, Board of Directors or Supervisory Board
• No notarial deeds
• Flexible language requirements; some documents may be registered in English
• Dividends can be distributed on an interim basis
• Danish company law is in conformity with current EU legislation
• It is tax efficient to establish your business in Denmark compared to other Nordic countries

Denmark as a Nordic headquarters

Denmark is often chosen as a company’s centre for Nordic or other European activities. In such cases, a company may establish a Danish company (A/S or ApS) which can then establish a branch in other Nordic or regional countries. Download our fact sheet to learn more about Establishing a business in Denmark.

A Danish company can also serve as Nordic headquarters or holding company for other European activities.

Advantages of establishing a company instead of a branch office

It is much simpler, faster and more cost-efficient to establish a company rather than a branch. A new company can be registered and ready to do business within a few hours, while the registration process of a branch may take several weeks and be more costly.

Another advantage of establishing a company in Denmark is that according to a unique Danish tax rule a foreign branch of a Danish company is generally not subject to tax in Denmark. Administration costs for handling double tax issues may be avoided by having the Nordic headquarters in Denmark instead of other Nordic countries.

Manufacturing and service businesses in Denmark

Manufacturing in Denmark may be carried out in various ways. A foreign company may establish separate production facilities, either by building, acquiring or leasing such facilities, or having products manufactured by establishing contacts to existing producers of similar products in Denmark. Establishing production facilities in Denmark is most often done by establishing a Danish company (A/S or ApS) and letting the company acquire or lease such facilities.

Service businesses in Denmark may be conducted through e.g. a distribution centre, a regional headquarters, or a shared services centre. Services are most often carried out through a Danish company, but can also be conducted via a branch or a representative office.