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Doing business
Denmark
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
Legal business entities
| Types of companies and capital (max/min) | Number of partners/shareholders and liability | Maximum and/or minimum capital | Liabilities | Registration fees |
| Anpartselskab ( ApS) is a Private Limited Company | Minimum 2 partners Maximum 50 shareholders. | Minimum DKK 125,000 totally subscribed and released. | Liability is limited to the amount contributed. | About DKK 2,300 + 0.4% of the authorized capital |
| Aktieselskab ( A/S) is a public limited company. | Minimum 3 partners. NB: At least 1 of them has to live in Denmark or to be a citizen of one of the European Union countries. | Minimum DKK 125000, totally subscribed and released. | Liability is limited to the amount contributed. | About DKK 3,000 + 0.4% of the authorized capital |
| Interessentskab ( I/S) is a general partnership. | Minimum 2 partners. | No minimum capital. | Partners' liability is indefinite and several. | Lower expenses as compared to a ApS |
| Kommanditselskab ( K/S) is a limited partnership. | Two types of partners: active partners and sleeping partners | No minimum capital. | Liability of active partners is unlimited. Liability of sleeping partners is limited to the amount contributed. | Lower expenses as compared to a ApS |
- Business setup procedures
- The creation of an ApS or a A/S requires several formalities:
The articles of incorporation include a constitution charter, drawn up and signed by the founders. Names and addresses of founders, members of the Board of Directors have to be specified. - 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 | 2007 | 2008 | 2009 |
| FDI inward flow (millions USD) | 11,804 | 2,717 | 7,800 |
| FDI stock (millions USD) | 161,491.3 | 150,937.6 | 157,627.2 |
| Performance Index*, ranking on 141 economies | 85 | 125 | 66 |
| Potential Index**, ranking on 141 economies | 23 | 24 | - |
| Number of Greenfield investments*** | 67 | 65 | 36 |
| FDI inwards (in % of GFCF****) | 16.9 | 3.8 | 8.0 |
| FDI stock (in % of GDP) | 52.0 | 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
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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
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Invest in Denmark
Federation of Danish Investment Associations
- Other useful resources
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Danish statistics
Ministry of economic and business affairs
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Last updates: September 2010
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