Expand Business in Denmark
Global Upside helps businesses expand into Denmark by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with Danish laws and regulations.
The hiring and incorporation processes in Denmark are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Denmark. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.
Denmark is a Scandinavian country located north of Germany on the Jutland Peninsula and consists of many islands. It is one of the most economically and socially developed countries globally and enjoys a high standard of living. The country ranks highly in some national performance indicators, such as education and health care.
There are four types of limited companies:
- limited partnership companies (Partnerselskaber or P/S)
- public limited companies (Aktieselskab or A/S)
- private limited companies (Anpartsselskab or ApS)
- entrepreneur companies (Iværksætterselskab or IVS)
These forms of establishments require at least one investor, and they have no personal liabilities. The board of directors governs the overall and critical administration responsibility, while the daily administration responsibility of the company falls on the executive committee. Additionally, the company must submit yearly financial reporting records with the Danish Business Authority.
A general partnership is an establishment that requires a minimum of two investors who can be individuals or companies. In case all the partners are legal entities, registration with the Danish Business Authority is compulsory. In addition, the partners are subject to the obligation of the overall association.
A limited partnership is an establishment that requires a minimum of two investors who can be individuals or companies. Here, one of the associates is the general partner, known as Komplementar, and the other is the limited partner, called a Kommanditist. While the Komplementar has an unlimited personal obligation for the bonds and debt, the Kommanditist is liable for the contributed capital.
A branch office is not a separate and individual entity but a part of the foreign-based business. Therefore, running the company in this kind of establishment requires more than one branch manager.
In Denmark, an employment contract can be either in writing or verbal.
The following are the statutory national holidays observed in Denmark:
- January 1 – New Year’s Day
- April 1 – Maundy Thursday
- April 2 – Good Friday
- April 4 – Easter Sunday
- April 5 – Easter Monday
- April 30 – Great Prayer Day
- May 1 – Labor Day / May Day
- May 13 – Ascension Day
- May 14 – Bank Holiday
- May 23 – Whit Sunday
- May 24 – Whit Monday
- June 5 – Constitution Day
- December 24 – Bank Holiday
- December 25 – Christmas Day
- December 26 – 2nd Christmas Day
- December 31 – Bank Holiday
The accounting principles used in Denmark are:
- International Accounting Standards (IAS)
- International Financial Reporting Standards (IFRS)
- Danish Generally Accepted Accounting Principles (Danish GAAP).
The Danish Parliament executed the Danish Act on Data Protection, also known as the Danish Data Protection Act (DDPA), to enforce the General Data Protection Regulation (GDPR). This act came into effect on May 25, 2018, replacing the former Danish Act on Processing of Personal Data (Act no. 429 of 31/05/2000). Hence, as reinforced by the DDPA, data privacy and processing are governed by the GDPR.
However, the DDPA does not apply to the Faroe Islands and Greenland.
Anti-Bribery & Anti-Corruption Law
The Anti-Corruption Policy provides general guidelines to prevent corruption in Denmark.