Doing business in Denmark

Danish law is mainly statutory, with EU regulations applying directly. Company registration, beneficial ownership, investment screening and dual-use export licences sit with the Danish Business Authority; tax with the Danish Tax Agency; financial regulation and AML supervision with the Danish Financial Supervisory Authority; competition and merger control with the Danish Competition and Consumer Authority; and data protection with the Danish Data Protection Agency. Greenland and the Faroe Islands are self-governing parts of the Kingdom of Denmark outside the EU.

Key facts

Corporate income tax

22% standard rate (as at mid-2026)

VAT

25% general rate

Main entity form

Private limited company (ApS), minimum capital DKK 20,000

Foreign investment

Generally open; prior authorisation for stakes of 10% or more in particularly sensitive sectors

Currency and exchange controls

Danish krone pegged to the euro within ERM II

Data protection

GDPR and Danish Data Protection Act; Danish Data Protection Agency

New York Convention

Party

Minimum wage

No statutory minimum wage; set by collective agreements

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Foreign investors can generally own Danish companies outright and most use a private limited company (ApS) or register a branch of the parent. Registration is digital through the Danish Business Authority, and companies receive a CVR number.

Key facts

• Most foreign-owned businesses incorporate an ApS, which needs a minimum share capital of DKK 20,000; an A/S needs DKK 400,000.

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• Incorporation and branch registration are done online with the Danish Business Authority; once a company has a CVR number it must deal with public authorities digitally.

• Beneficial owners must be registered with the Danish Business Authority as part of setting up and checked at least once a year.

• Check early whether the target is in a particularly sensitive sector: foreign investments of 10% or more there need prior authorisation before closing.

Who handles this in DenmarkCorporate & Entity ServicesLegal & ContractingGovernment & Regulatory AffairsRisk, Compliance & Financial Integrity

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Key facts

• VAT is generally 25%, and businesses selling more than DKK 50,000 a year must register.

• Dividends paid abroad face a 27% statutory withholding rate unless a treaty or EU directive reduces it or a parent-company exemption applies.

Who handles this in DenmarkTax & International StructuringAccounting, Reporting & Statutory ComplianceAudit & Assurance

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Key facts

• There is no statutory minimum wage, so check whether a collective agreement binds the employer, as it will set pay and conditions.

• Payroll deducts income tax and the 8% labour market contribution from employees.

• Non-EU staff usually need a permit from SIRI; the Pay Limit and Fast-Track schemes are the main routes for skilled hires.

Who handles this in DenmarkEmployment, Payroll & MobilityLegal & ContractingTax & International Structuring

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Public procurement follows EU rules. Non-residents generally need permission to acquire Danish real property.

Key facts

• Financial services need authorisation from the Danish FSA unless the business can passport in from another EEA state.

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• Public contracts are tendered under EU-based procurement rules.

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• Buying property usually needs Ministry of Justice permission for non-residents, and summer houses are further restricted.

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Who handles this in DenmarkGovernment & Regulatory AffairsLegal & Contracting

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Denmark has no exchange controls, and profits can be repatriated freely subject to tax. The Danish krone is pegged to the euro. Banks apply strict know-your-customer checks under the Danish AML Act, which can slow account opening for foreign-owned companies.

Key facts

• No exchange controls apply, so dividends, interest and capital can be paid abroad subject to tax.

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• The krone is pegged to the euro, which limits but does not remove currency risk for euro-based groups.

• Expect detailed AML checks on owners and activity when opening a Danish bank account.

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Who handles this in DenmarkBanking & Capital AccessPayments, Foreign Exchange & SettlementRisk, Compliance & Financial Integrity

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Denmark is in the EU customs union, so EU tariffs, trade agreements and product rules apply. Customs is handled by the Danish Customs Agency. Greenland and the Faroe Islands are part of the Kingdom of Denmark but outside the EU and its customs territory.

Key facts

• EU customs, tariff and product conformity rules (including CE marking where required) apply to goods placed on the Danish market.

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• Customs declarations and duties are handled by the Danish Customs Agency.

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• Treat shipments to Greenland or the Faroe Islands as exports outside the EU.

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Who handles this in DenmarkTrade, Customs & Supply ChainRisk, Compliance & Financial Integrity

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Key facts

• GDPR and the Danish Data Protection Act apply, supervised by the Danish Data Protection Agency.

• Enforcement of fines goes through the police and courts, but liability levels follow the GDPR.

Who handles this in DenmarkTechnology, Data & CyberLegal & ContractingRisk, Compliance & Financial Integrity

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Danish patents, trade marks and designs are registered with the Danish Patent and Trademark Office, and EU-wide rights are available through the EUIPO and the European patent system. Denmark participates in the Unified Patent Court. Copyright arises automatically without registration.

Key facts

• National patents, trade marks and designs are handled by the Danish Patent and Trademark Office; EU trade marks and designs also cover Denmark.

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• International filings can use the Madrid, PCT and European patent routes.

• Patent disputes can go to the Unified Patent Court, which has a local division in Denmark.

• Copyright needs no registration, so keep records of authorship and ownership, especially for software.

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Who handles this in DenmarkIntellectual Property & Brand ProtectionLegal & Contracting

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Listed company takeovers follow capital markets rules. Insolvency is handled by the probate courts, with a reconstruction procedure available for viable businesses.

Key facts

• Check Danish merger control thresholds early; notifiable deals cannot close before approval.

• Run foreign investment screening analysis in parallel where the target is in a sensitive sector.

• Listed takeovers are subject to mandatory offer and disclosure rules supervised by the Danish FSA.

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• Distressed businesses can use reconstruction as an alternative to bankruptcy; cases go to the probate courts, or the Maritime and Commercial Court in Greater Copenhagen.

Who handles this in DenmarkTransactions & DealsGovernment & Regulatory AffairsLegal & Contracting

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Bribery is a criminal offence in Denmark, and companies can be held criminally liable. Employers must also carry statutory occupational injury insurance.

Key facts

• Anti-bribery rules cover foreign officials and companies, so group policies should be applied to Danish operations.

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• Employers with 50 or more staff must run an internal whistle-blowing scheme.

• Occupational injury insurance is mandatory once the company has employees; listed companies follow governance recommendations on a comply-or-explain basis.

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Who handles this in DenmarkRisk, Compliance & Financial IntegrityInsurance & Risk TransferLegal & Contracting

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Denmark has a three-tier court system, with a special Maritime and Commercial Court in Copenhagen. Arbitration law is based on the UNCITRAL Model Law and Denmark is a party to the New York Convention. EU judgments are enforced under the Brussels I regime through Denmark's parallel agreement with the EU.

Key facts

• International commercial, competition and IP disputes can be brought before the Maritime and Commercial Court in Copenhagen.

• Arbitration seated in Denmark follows legislation from 2005 based on the UNCITRAL Model Law.

• Foreign arbitral awards are enforceable under the New York Convention.

• EU judgments are enforceable, but judgments from countries without a treaty generally are not, so arbitration is often preferred for non-EU counterparties.

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Who handles this in DenmarkDisputes & ResolutionLegal & Contracting