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.
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