2024: Doing Business in Denmark

Published on Jun 25, 2024

Part 1: Doing Business in Denmark


What is the current business climate in your jurisdiction, including major political, economic, and/or legal activities on the horizon in your country that could have a big impact on businesses? 


Denmark offers a combination of economic resilience, political stability, and legal transparency, making it an attractive destination for national and international businesses. With an economy that consistently shows signs of progress, supported by a well-educated workforce and a strong tradition of trade and technological innovation, Denmark is among the wealthiest nations in the world. 


Politically, Denmark is a welfare state with political stability that safeguards democracy and the rule of law, ensuring a predictable and secure framework for business operations. This gives companies confidence that they can operate in a predictable environment. The government promotes sustainable growth through policies that support green transition and innovation, including investments in renewable energy.


Legally, Denmark offers a transparent and efficient legal system that is easy to navigate and provides strong protection of intellectual property rights. The country's legislation is modern, efficient, and in line with EU legislation, which supports international trade and investments.


Denmark's consistently high ranking in 'Ease of Doing Business' indexes reflects an efficient and predictable framework for business operations, supported by strong infrastructure and advanced technology. This, combined with a highly educated workforce and an open economy, makes Denmark an ideal place for businesses to grow and prosper.


In Denmark climate, sustainability, and green energy are important priorities, and the majority of electricity consumption in Denmark comes from green energy. This is currently reflected in the largest tender for offshore wind farms which could more than triple the capacity of offshore wind turbines. This generates business opportunities in Denmark and contributes to reaching our climate goals.


 

From what countries do you see the most inbound investment? What about outbound? 

 

Inbound investment: USA, Sweden, Norway, and Finland 

Outbound investments: USA, United Kingdom, Deutschland, and Sweden 


 

In what industries/sectors are you seeing the most opportunity for foreign investment? 

 

Manufacturing, import/export, energy and transport, and food products.


 

What advantages and pitfalls should others know about doing business in Denmark? 


Advantages: 

  • Denmark has a solid economy. Denmark has one of the best economies in the world, and this gives companies a secure platform to run their business.

  • Denmark has a high standard of living. Denmark is one of the wealthiest countries in the world, and this means that companies can access a high-quality labor force.

  • Denmark is one of the world's most innovative countries. Denmark is at the top of several international innovation rankings. This means that companies here have access to the latest technologies and knowledge.

  • Denmark is one of the world's leading logistics countries. Denmark is strategically located in relation to many other countries in Europe, making it an obvious choice for companies working with logistics.

  • Denmark has a low tax rate for companies. Companies in Denmark only pay 25% in taxes. This is very low compared to other countries in Europe, where companies can end up paying up to 50% in taxes.


Pitfalls:

  • In some other countries, companies pay less tax, which can give them a competitive advantage.

  • Denmark is a relatively small country, so there may be more people available to work in other countries, which can make it easier for companies to find the right labor force.

  • Again, Denmark is a small country, so other countries may have larger or different markets for companies' products and services, which can give them an advantage in expanding their business.


 

What is one cultural fact or custom about Denmark that others should know when doing business there? 


It is important to understand Danish work culture, and modern organizations value work-life balance and a flat hierarchy structure. Punctuality is highly valued. Consensus and involvement are key in decision-making processes. Christmas and Easter are important holidays and respecting these can foster relationships.



Part 2: About Your Firm


What distinguishes your firm from others in your market? 


Bech-Bruun is a market-oriented and specialized law firm serving a wide range of Danish businesses, the public sector, and global companies with a wide range of services.


As a business in an ever-changing world, you need a new way of thinking and navigating. Finding the right solutions for you requires a keen eye for detail, but also the ability to understand where the client is coming from and where they want to go. Most of all, it requires cooperation. You get that at Bech-Bruun.


With almost 600 experienced specialized employees, we are one of Denmark's leading full-service law firms.


 

What are three words that describe the culture of your firm?


Quality, specialized, and collaborative.


 

How does your firm participate in Corporate Social Responsibility (CSR) and/or Environmental, Social, and Governance (ESG) initiatives? 


Bech-Bruun contributes to development and sustainability in a number of ways, including:


Focus on personal development: Bech-Bruun has a strong focus on supporting the right career paths and giving employees the best tools to succeed both professionally and personally. This includes a strong focus on diversity.


Focus on employee well-being: The basis for offering the best advice and the best solution to our clients is also that Bech-Bruun employees thrive. That is why we focus on how we act and behave towards each other.


Focus on responsible and sustainable collaboration: Bech-Bruun is working towards a sustainable future. We do this best with our knowledge and in close cooperation with the companies that can develop the new and effective solutions needed. 


Focus on sustainable workflows: It is important for us to be at the forefront of new energy and environmentally friendly solutions that benefit the environment, our own business, and our clients.


 

Are there any new and exciting initiatives, practice areas, or industry focuses in your firm? 


Diversity and inclusion

At Bech-Bruun, we have clear diversity goals. In 2020, we were the first law firm in Denmark to set two clear diversity goals, for 2025 and 2030, respectively.


By 2025, one in three new partners will be a woman, and by 2030, it should be half.


BB Impact

For many startups, getting their legalities right can be a big challenge. It can be difficult to get started - and to take that important step towards the dream of a successful startup.


BB Impact is our collaborative program where we focus on startups that are working towards a better world. Their business ideas are born out of a vision for more sustainability and their goal is a business that directly supports the UN's 17 Sustainable Development Goals. And we help them along the way with what we do best - our legal advice and business expertise.