The world’s best country for business according to Forbes and the easiest country in Europe to do business in according to the World Bank.
Denmark is one of the most competitive economies in the EU, as well as the entire world at the moment.
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Denmark is one of the easiest places in the world to do business. In Denmark, it takes only a few hours to set up a company with the Danish Business Authority, no need of notaries. All corporate registrations can be in place and the company ready to do business from one day to the next. If you are a Nordic or EU/EEA citizen, you can start your own business in Denmark. If you are a citizen from outside the Nordic countries, EU/EEA and Switzerland, you have to apply for a residence and work permit in order to be self-employed and/or operate an independent company in Denmark.
Denmark is leading the list of the world’s least corrupt countries and it is among the most transparent markets in Europe and worldwide. The transparent Danish market provides the investor with a secure and low risk environment for foreign direct investment.
Investments in Denmark are conducted in a market which benefits from a highly transparent and stable legal and regulatory framework coupled with a simple transaction process.
The main characteristics of this country are:
Geography and economy:
Denmark is a relatively small country with a population of cca 5,748,856 inhabitants. There is only one terrestrial border – with Germany, the rest of the country is surrounded by seas. Denmark’s territory includes a peninsula (Jutland) and cca 527 small islands connected by numerous bridges with a spectacular architecture and ferry-boat lines, a very well organized and comfortable transportation service, specific to Denmark and to other Scandinavian countries.
Danish economy is based on small and medium-size companies and in the most typical organizational structure there is only one owner who often is both investor and manager. A very popular product category in Denmark seems to be food & beverages products. Danes love and prefer local products which are also researched world wide for their recognized qualities. It is relevant that a small country as Denmark is the 5th exporting country in the world for this category and the food sector seems to be the most developed branch of industry.
But the most important sector of the economy is the services which is relatively similar to the rest of the Western countries. The main services categories are: tourism, naval transport, insurances, software, banking, entertainment, cleaning and maintenance.
High salaries and high tax payment:
The average salary is of around EUR 2900 after tax. The average tax payment is of around 36%.
37 hours of work per week.
Danish flexicurityThanks to Denmark’s well established government investing in social welfare, the country has one of the most flexible hiring and firing legislation in the world, as well as one of the best public sector services in the world. Moreover, the high quality of life, expressed in Denmark being voted the happiest country in the world, coupled with competitive salaries for management positions, are further incentives to open a company in Denmark.
Foreign investmentThe Danish foreign policy leans towards reduction of trade barriers and foreign investment is highly encouraged in Denmark. It is considered to be one of the least discriminative and open of policies among all European countries by the Organization of Economic Co-operation and Development (OECD). As such, foreign investors have the same rights as domestic ones.
Setting up a business
Creating a company in Denmark is not expensive, depending on the choice of business entity, a minimum share capital amounts is required (EUR 6.710 for an ApS and EUR 67.100 for an A/S). The share capital is not regarded as a cost and is not blocked, but may instead be used as part of the operating capital.
The Danish tax system (SKAT) is modern and progressive. This means that the higher your income, the more taxes you have to pay. In many other countries citizens pay less tax than in Denmark, but in return they have to pay to go to school, to the hospital, the doctor’s, etc. Denmark has its own Minister of Taxation, Ministry of Taxation and its own taxation laws. SKAT will automatically receive most of the information required to determine the tax for most tax payers.
Living in Denmark
Living in a country like Denmark where the standard of living is generally very high and people feel happy and safe will most certainly make the process of moving to another country easier.
Denmark has well-functioning infrastructure, a strong educational system and rich cultural life that can make living in Denmark a good experience for you and the family you may want to bring.
Every industry has its own challenges and opportunities and it takes expert market knowledge to pinpoint the right entry points for your venture. If you want to set-up a business, buy a company, live, study, get retired, buy a property or invest in Denmark. Please, contact us.