Because of entrepreneurial activity in Denmark.
Denmark is one of the most modern and equipped European Union states and the 3rd country in the world in the Doing Business ranking of the World Bank for 2018.
Despite the general economic crisis in the Eurozone, Denmark has maintained acceptable economic levels, suffering in some sectors such as agriculture and strengthening others such as finance and technology.
The Danish government has encouraged economic growth thanks to a series of policies focused on tax relief and the growth of welfare for workers, despite the country being one of the most liberal in Europe, with reduced participation of the state in economic activities.
Pros and Cons.
Doing business in Denmark has mainly three advantages: the first is the highly favourable geographical position for trade in northern Europe, the second is the presence of highly advanced infrastructures and the third is the presence of highly specialized bilingual labour.
The flexibility of the Danish work system is also offset by a very high level of welfare.
It is undoubtedly challenging to find disadvantages in doing an entrepreneurial activity in Denmark, except in the choice of the sectors in which to invest. Indeed, the agricultural industry is the one that has suffered the most from the economic crisis of recent years, but the same has been offset by a massive growth in the more purely technological and financial sectors (Chemical / Pharmaceutical, Electronics, Finance, Energy).
What tools to use to do business in Denmark.
A company or a foreign entity that wants to carry out an entrepreneurial activity in Denmark will be able to choose different legal forms including the best-known limited liability company or, alternatively, in the most streamlined form of the foreign company branch.
The constitution of a Danish Srl provides for the payment of share capital of 50,000 Danish Kronor or the equivalent contribution of assets in kind, provided they can be economically appreciated.
the company must have its registered office in the country and may be managed by one or more non-Danish directors and residents abroad.
Taxation for companies in Denmark is 22% (flat tax) and the same rate is applied to royalties for the use of trademarks, design patents, etc. Any exemptions are provided for in the relevant bilateral agreements with other states.
Taxation of dividends is normally exempt in the presence of certain requirements including:
- Company compliance with Danish law;
- The foreign company holds at least 10% of the Danish one;
- distribution is based on the European “mother-daughter” directive or a specific bilateral treaty.
We can, therefore, state that, like most of the Scandinavian countries, Denmark remains a comfortable place to establish its business, but above all the search for an excellent lifestyle.