Denmark

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DOING BUSINESS

 


Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

Both the Danish Government and the EU provide a number of industrial incentives. The Royal Danish Ministry of Foreign Affairs, through its investment promotion agency Invest in Denmark, provides a comprehensive overview of these investment incentives. It should also be contacted in order to get a complete investor guide.

 

Legal forms of companies

Form Number of partners/shareholders Minimum and/or maximum capital Liability Registration fee Release of financial documents
Anpartselskab ( ApS) is a Private Limited Company Minimum 2 partners Maximum 50 shareholders. Minimum DKK 125,000, totally subscribed and released. Liability is limited to the amount contributed. About DKK 2,300
+ 0.4% of the authorised capital
No
Aktieselskab ( A/S) is a public limited company. Minimum 3 partners
NB: At least 1 of them has to live in Denmark or to be a citizen of one of the European Union countries.
Minimum DKK 125,000, totally subscribed and released. Liability is limited to the amount contributed. About DKK 3,000
+ 0.4% of the authorised capital
Yes
Interessentskab ( I/S) is a general partnership. Minimum 2 partners. No minimum capital. Partners' liability is indefinite and several. Lower expenses as compared to a ApS No
Kommanditselskab ( K/S) is a limited partnership. Two types of partners: active partners and sleeping partners No minimum capital. Liability of active partners is unlimited. Liability of sleeping partners is limited to the amount contributed. Lower expenses compared with a ApS No

Registration and licensing procedures
The creation of an ApS or a A/S requires several formalities:
The articles of incorporation include a constitution charter, drawn up and signed by the founders. Names and addresses of founders, members of the Board of Directors have to be specified.

Foreign exchange control

Regulations concerning equity investment
A majority holding interest in the capital of a local company is authorised.  


Foreign Direct Investment inflows in Denmark

FDI inflows 2003 2004 2005 World rank (*)
2005
FDI inflows (USD million) 2 595 10 722 5 309 140/141
Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.

 

Last modified in 2006 - ongoing update
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