Expanding into
Denmark
Global expansion is a step for any business, regardless of your goal. The opportunities that can come with an expansion can be both incredibly exciting as well as intimidating and confusing, especially when you consider all of the registration procedures that need to be done and the documentation required.


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Expanding into Denmark – which is characterised by a highly motivated and productive workforce, flexible employment laws, strict tax laws, a resilient infrastructure network with leading sectors in agriculture, energy, tourism, and transport – can bring excitement to the possibilities, but also significant stress to ensuring the entity with the country’s rigid legal structures and laws.
Ensuring compliance without sufficient knowledge of the country’s laws also adds stress to getting your new entity off the ground and ready to test new markets. Going at it without the proper support can increase the costs, time and risks involved.
This can be worked through efficiently and cost-effectively with the support of an international Professional Employer Organisation (PEO) such as Bradford Jacobs, especially through our Employer of Record (EOR) framework.
This can be best utilised when businesses are just beginning their expansion process and require more information before committing to incorporating an entity and fully establishing themselves in that market.
Hiring Staff
in Denmark
Comfortable living standards, high degrees of government services and transfers, and a high dependence on foreign trade characterise Denmark’s modern mixed economy. Denmark is also a small open economy, with its exports and imports making up around 50% of the GDP.
The country’s nominal gross national income per capita is the seventh highest globally, registering at around $58,400 in 2020. In purchasing power, the country is the tenth highest in the world. Denmark has the 36th largest national economy in the world in terms of gross domestic product (GDP) and the 51st largest in the world in terms of purchasing power parity (PPP).
Denmark is a main gateway to European talent for companies expanding abroad and serves as a magnet for business ventures worldwide. A large proportion of Denmark’s population is active in the labour force, with 78.8% of the 15-64 age group being active.
The unemployment rate is also relatively low in comparison with other European countries. The labour market is also characterised by a high degree of union membership rates and collective agreement coverage – with active labour markets and ‘flexicurity’ taking being prominent in its efficiency.
Denmark’s strongest sectors include agriculture, services, energy, manufacturing, and digital infrastructure. Denmark is a nation of digital frontrunners, ranked by the European Commission as an innovation leader. The country also boasts one of the world’s highest digital penetration rates, with over 75% of the population accessing the internet seamlessly.
Denmark has solid international ties – it is a founding member of NATO, the Nordic Council, the OECD, OSCE, and the United Nations, as it is also part of the Schengen Area.
Geographically, Denmark is ideally placed in the European continent, with links to both mainland Europe and Scandinavia, and benefits from state-of-the-art logistics and communications networks with the fastest and smoothest access to Europe.
This includes next-day deliveries to around 65% of Europe’s heartland, which has more than 500 million consumers, is home to leading logistics services providers such as Maersk and DSV and boasts a world-class digital infrastructure.
The Copenhagen Airport is continuously rated as the most efficient in Europe, and its robust shipping system consists of 25 ports with frequent international shipments.
The country’s economy is also an example of the Nordic model, which is characterised by high tax levels and high levels of government-provided services, as well as world-renowned digital services.
Small and Medium-Sized Companies
Small and Medium-Sized companies (SMEs) have a significant role in Denmark’s economy. In 2018, it was estimated that there were approximately 227,000 SMEs, constituting around 99.7% of the country’s economy.
Denmark’s SMES generate about 60.8% of overall value added, above the EU average of 56.4%.
These companies also provide around 64% of Denmark’s jobs, employing an average of 5.1 people, over the EU average of 3.9 people. The average SME productivity, or the value added per person, is €79,200.
However, you can expect a minimum wage in Denmark of about DKK 110/hour (EUR 14.77/h – USD 16.13/h)
Average is 37h/week => Expected minimum wage around DKK 17,000/month (EUR 2,283/month – USD 2,493/month)
For non-natural persons/companies: TIN is the Danish CVR number – 8-digit code.
For foreign companies with no permanent establishment in Denmark: TIN is the Danish SE number – 8-digit code.
In some situations a company can have both a CVR number and a SE number.
Main Customers: Germany, Sweden, Norway, United Kingdom, United States, the Netherlands and China.Main suppliers: Germany, Sweden, the Netherlands, China, Poland and Norway.
Hiring Staff
in Denmark
The country’s nominal gross national income per capita is the seventh highest globally, registering at around $58,400 in 2020. In purchasing power, the country is the tenth highest in the world. Denmark has the 36th largest national economy in the world in terms of gross domestic product (GDP) and the 51st largest in the world in terms of purchasing power parity (PPP).
Denmark is a main gateway to European talent for companies expanding abroad and serves as a magnet for business ventures worldwide. A large proportion of Denmark’s population is active in the labour force, with 78.8% of the 15-64 age group being active.
The unemployment rate is also relatively low in comparison with other European countries. The labour market is also characterised by a high degree of union membership rates and collective agreement coverage – with active labour markets and ‘flexicurity’ taking being prominent in its efficiency.
Denmark’s strongest sectors include agriculture, services, energy, manufacturing, and digital infrastructure. Denmark is a nation of digital frontrunners, ranked by the European Commission as an innovation leader. The country also boasts one of the world’s highest digital penetration rates, with over 75% of the population accessing the internet seamlessly.
Denmark has solid international ties – it is a founding member of NATO, the Nordic Council, the OECD, OSCE, and the United Nations, as it is also part of the Schengen Area.
Geographically, Denmark is ideally placed in the European continent, with links to both mainland Europe and Scandinavia, and benefits from state-of-the-art logistics and communications networks with the fastest and smoothest access to Europe. This includes next-day deliveries to around 65% of Europe’s heartland, which has more than 500 million consumers, is home to leading logistics services providers such as Maersk and DSV and boasts a world-class digital infrastructure.
The Copenhagen Airport is continuously rated as the most efficient in Europe, and its robust shipping system consists of 25 ports with frequent international shipments.
The country’s economy is also an example of the Nordic model, which is characterised by high tax levels and high levels of government-provided services, as well as world-renowned digital services.
Denmark’s SMES generate about 60.8% of overall value added, above the EU average of 56.4%.
These companies also provide around 64% of Denmark’s jobs, employing an average of 5.1 people, over the EU average of 3.9 people. The average SME productivity, or the value added per person, is €79,200.
However, you can expect a minimum wage in Denmark of about DKK 110/hour (EUR 14.77/h – USD 16.13/h)
Average is 37h/week => Expected minimum wage around DKK 17,000/month (EUR 2,283/month – USD 2,493/month)
For non-natural persons/companies: TIN is the Danish CVR number – 8-digit code.
For foreign companies with no permanent establishment in Denmark: TIN is the Danish SE number – 8-digit code.
In some situations a company can have both a CVR number and a SE number.
Main suppliers: Germany, Sweden, the Netherlands, China, Poland and Norway.
The Main Sectors of the Danish Economy
The country focuses on the following key sectors, which all have a significant impact on the country’s economy:
The Main Sectors of the Danish Economy
The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

Commercial Laws in
Denmark
Commercial Laws in
Denmark
