Denmark is one of the most business-friendly countries in the world, offering a unique combination of economic stability, innovative spirit, and high standard of living. As a foreigner, starting a business in Denmark can be a bit complex, but with the right guidance, it can also be a highly rewarding experience. In this article, we will guide you through the process of starting a business in Denmark as a foreigner, highlighting the most important steps, requirements, and opportunities.
Understanding the Danish Business Environment
Before starting a business in Denmark, it’s essential to understand the local business environment. Denmark has a highly developed market economy, with a strong focus on innovation, technology, and sustainability. The country is home to many successful startups and entrepreneurs, and the government offers various incentives and support programs to encourage entrepreneurship. Denmark is also a member of the European Union, which provides access to a large and integrated market.
Key Industries in Denmark
Some of the key industries in Denmark include:
- Renewable energy and clean tech
- Life sciences and biotechnology
- Information technology and software development
- Food and agriculture
- Manufacturing and engineering
Setting Up a Business in Denmark
To start a business in Denmark, you will need to follow these general steps:
- Choose a business structure: You can choose from various business structures, such as a sole proprietorship, partnership, or limited company.
- Register your business: You will need to register your business with the Danish Business Authority (Erhvervsstyrelsen) and obtain a CVR number (Central Business Register number).
- Obtain necessary licenses and permits: Depending on the type of business you want to start, you may need to obtain licenses and permits from relevant authorities.
- Open a bank account: You will need to open a bank account with a Danish bank to manage your business finances.
- Obtain a tax identification number: You will need to obtain a tax identification number (SE number) from the Danish Tax Agency (Skattestyrelsen).
Visa and Residence Requirements
- Startup Denmark visa: This visa is designed for foreign entrepreneurs who want to start a business in Denmark.
- Green card scheme: This scheme allows foreign nationals to live and work in Denmark for up to three years.
- Positive list scheme: This scheme allows foreign nationals to work in Denmark in certain sectors, such as IT, engineering, and healthcare.
Funding and Support for Foreign Entrepreneurs
- Startup Denmark: This program provides funding and support for foreign entrepreneurs who want to start a business in Denmark.
- Invest in Denmark: This program provides investment and support for foreign companies that want to establish a business in Denmark.
- Denmark’s entrepreneurial ecosystem: Denmark has a thriving entrepreneurial ecosystem, with many incubators, accelerators, and coworking spaces that offer funding, mentorship, and networking opportunities.
Taxation and Accounting
- Corporate tax rate: 22% (2022)
- Value-added tax (VAT): 25% (2022)
- Income tax rate: 37-55.9% (2022)
