Doing business in Denmark
ComplianceDecember 14, 2020

Doing business in Denmark

One of the oldest states in Europe, the Kingdom of Denmark is a prominent Scandinavian nation with a robust economy that is among the most stable in Europe. Although part of the European Union (EU), Denmark has opted out of certain facets of the treaty, most notably not adopting the Euro as its official currency.

Denmark is known for its high standard of living, highly educated population, and consistently ranks as one of the happiest countries in the world. It is also an important player in the general political and economic landscape of the EU and is a thriving hub for innovation and technology.

Starting and running a business in Denmark requires that companies understand the country’s laws, rules, and regulations. In this article, we review the reasons for doing business in Denmark, the risks and considerations, and common FAQs

Read the Country GuideCheck out our country guide to learn more about this popular region’s business environment, entity types, taxes, incorporation requirements and more.

Advantages of doing business in Denmark

Robust domestic economy

Although a small country with a population of just less than $6 million, Denmark has one of the strongest economies in the world and a comparatively large domestic market – making it an attractive option for foreign companies and individuals.

Denmark’s workforce is renowned for being highly motivated and productive. This provides a labor market that is cost-efficient and flexible.

The country also benefits from a well-connected infrastructure and boasts a world-class R&D innovation environment.

Ease of doing business

The World Bank’s “Ease of Doing Business Index” scores Denmark highly. It is one of the easiest places to do business in Europe, second only to Finland, and is within the top five in the world. Investing companies benefit from stable economic and political systems and a business-friendly environment – transparency is important to the Danes. The government has also developed efficient and cost-effective processes – including the simplification of several legal procedures – that make it easy and quick to establish a business in the country.

Strong services sector

The services sector is the leading contributor to Denmark’s GDP, employing about 80% of the population. This includes a highly developed and concentrated banking and finance industry. A gateway to Europe and steeped in history, Denmark also has a robust tourism sector which forms a large part of its economy.


Although Denmark has many official languages including Danish, Faroese, Greenlandic, and German, English is the official language of business – an important factor for U.S. investors and entrepreneurs to consider.

Risks and Considerations

Business culture

Cultural differences are important to consider. The business environment in Denmark is quite informal and relaxed. There are no strict hierarchies between colleagues, teamwork is highly prized, as well as maintaining process, order, and structure in the workplace.


There are few challenges to doing business in Denmark, however, entrepreneurs must understand the processes and steps needed to comply with local rules, regulations, and compliance requirements. Denmark’s preference for order and structure means that missing any step or information can set business plans back. Having the right support in starting or expanding a business in Denmark can go a long way.

Frequently asked questions for doing business in Denmark

Why should I consider doing business in Denmark? 
Denmark is one of the easiest places to do business and is one of the most competitive economies in the world. The country has a large and lucrative domestic market and can easily access the rest of the European market. A highly developed infrastructure, transportation and communications options, a safe business environment, and a well-educated labor force make Denmark an attractive location for businesses. 

What challenges should I consider when expanding to Denmark?
Overall, Denmark provides foreign investors with a safe and transparent business environment, and there are no real risks or challenges to doing business in the country. 

What is the corporate tax rate?
As of 2020, the corporate tax rate in Denmark is 22%

What are the business entity types available?
There are many types of entities available in Denmark to meet business requirements. However, the most used by foreign businesses include Limited Liability Company (Kapitalselskab), General Partnership (Interessentskab, I/S), Limited Partnership (Kommanditselskab, K/S), and Branch Office (Filial). 

How long does it take to register a business in Denmark?
A business can be registered within 1 to 2 days.


Disclaimer: The information provided within this article was accurate as of the date of publishing. To obtain the latest information about this jurisdiction or any other jurisdiction, please get in touch with a CT representative.

The CT Corporation staff is comprised of experts, offering global, regional, and local expertise on registered agent, incorporation, and legal entity compliance.

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