What you need to know about Denmark before expanding your business there

  • Published on
    13-Mar-2016

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Denmark is self-sufficient in energy as it produces oil, natural gas, wind-energy and bio-energy. The country's main exports are dairy products, fish, furniture, leather, meat, gas, oil, machinery, chemicals, sugar, equipment and foodstuffs.

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  • What you need to know about Denmark before expanding your business there

    Although small, Denmark has a strong, open economy with one of the highest GDPs in Europe. It depends largely on trade with other

    countries and is the ideal starter market for small to medium sized businesses. The Danish economy has one of the best performing

    economies in the EU, with high growth and low unemployment. Together with low interest rates, this has enhanced private consumption,

    providing an abundance of opportunities for new and seasoned investors. Even though it has yet to join the European Economic and

    Monetary Union, Denmark participates fully in the economic collaboration of the European Union.

    Understanding the economic conditions

    With one of the best economies in Europe, Denmark has a highly developed infrastructure and extensive welfare system. Denmark boasts a

    modern economy and business here is competitive to other countries. For those interested in doing business overseas , it is very favorable

    to invest in Denmark. It has high industrial productivity and profitability and has one of Europe's most efficient distribution systems.

    The main areas for business opportunities

    Denmark is self-sufficient in energy as it produces oil, natural gas, wind-energy and bio-energy. The country's main exports are dairy

    products, fish, furniture, leather, meat, gas, oil, machinery, chemicals, sugar, equipment and foodstuffs. Its main imports are machinery,

    equipment, raw materials, chemicals, grain, foodstuffs and consumer goods; with the main import partners being Germany, Sweden,

    Netherlands and the UK and 70 percent of trade flows are within the EU. Aid-funded business- this is a win, win section and the other

    areas include creative and media, education, financial and legal services, transport, life sciences, chemicals, etc. The main cities for starting

    a business in Denmark are Copenhagen, Aarhus, Odense, Aalborg, Esbjerg, and Randers.

    Financing options

    There are a wide range of sources and finances in Denmark that include private investors, banks, venture capitalists and institutional

    investors. Companies must be assessed individually in order to choose the right finance partner when looking for finance. To ensure

    smooth and legitimate business, it is advisable to seek professional advice when negotiating with investors and finance institutions.

    How to overcome the challenges?

    Making hurried and uninformed decisions can spell disaster for your business. It is of course no easy task to gain a comprehensive

    understanding of the laws of another country. The two issues that a foreign company may face when expanding to Denmark are lack of

    skilled labor and a relatively high taxation. But with the guidance of a professional, you can be assured of a smooth transition. An expert

    can provide you with the necessary assistance in international financial accounting, regulatory filings , local business practices such as

    hiring employees, providing benefits and incentives to the employees, etc. Seeking counsel from a professional will make certain that you

    are taking the right steps towards the fulfillment of making your international business venture a success.

    Also read on : sas compliance , International financial reporting

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