Starting a business in Denmark

Denmark, like most countries in the world, offers simplified schemes for obtaining a residence permit for businessmen and investors. To obtain a visa, it is necessary to organize an enterprise that does not violate local laws, that makes a profit and gives local residents jobs.

General information on business immigration in Denmark

Arriving for the purpose of starting a business is the easiest way to guarantee a visa and residence permit shortly after moving.

When considering an application by the Danish Migration Service, the following parameters are taken into account:

• Opportunities for a migrant to benefit the country;
• The legality of the company and the funds transferred for its work;
• The entrepreneur's ability to pay taxes on time;
• Providing jobs for the citizens of the country in the new company.

The decision to grant a business visa is made by the Directorate, a government agency directly dealing with migrant issues.

Business visa and getting it in Denmark

Denmark is one of the countries that have entered into the Schengen agreement, so the procedure for obtaining a visa does not differ from other European countries.

To apply for a standard visa to visit the country, you will need:

• Application in English;
• International passport with a processing time of +3 months from the planned date of the trip;
• Photocopies of previous invalid passports;
• Insurance medical policy with a limit of 30,000 euros, valid for all countries of the Schengen agreement;
• Two color photographs 3.5 by 4.5 centimeters;
• Extract from the tax service, TIN, OGRN for individual entrepreneurs;
• Confirmation of hotel room reservation;
• Receipt of payment of visa fee (27 euros per person).

For permanent relocation, you must apply for a work visa through your own company or take part in an investment program. A business visa is needed for business negotiations, consultations with partners, and solving urgent problems.

What type of business is more profitable to open in Denmark

According to European statistics, Denmark is the country with the most startup-friendly legislation. The population is open to innovations, and the state is ready to support new projects if they are sufficiently developed.

According to the government, the most important areas of activity for the country are:

• Information Technology;
• Renewable energy sources;
• Ships and other sea transport;
• Food production;
• Biotechnology;
• Design.

Conditions of immigration to Denmark for entrepreneurs

The list of requirements for moving to the country differs depending on the chosen program. For startups, the conditions for obtaining a residence permit look like this:

• A unique business idea approved by the Danish Office of Commerce. A regular restaurant or store will not work;
• The need for a personal presence to create a business. Just investing money is not enough;
• Documentary evidence of the ability to support yourself and your family for a year. Adult costs are about 133 thousand kroons, per child - 44 thousand.

For investors, the required amount starts from 50,000 euros. Investments alone are not enough - an emigrant is obliged to open a business and create jobs. The investment cap has been made so low as not to restrict young startups.

One of the options is the purchase of a ready-made business or a joint investment with a Danish businessman.

Selecting the required visa

When drawing up documents for entry, it is necessary to distinguish between a business and a work visa:

1. The first one is needed for a temporary visit to the country for business reasons or an invitation. Usually issued for a period of six months, of which you can stay in the country for no more than 3 months. This type of visa is suitable when applying for a company and first visits to the country;
2. A work visa allows permanent residence and employment in the country. In addition to the standard package of documents, the applicant will need an invitation to a position from the company and a signed contract.

In the case of organizing his own company, after a positive decision of the Directorate, the founder is automatically granted a residence permit with a period of one year and the possibility of extension.

Therefore, for business immigration, the type of visa does not really matter - after the creation of the company, a businessman will in any case receive the right to live and work in the country.

Conditions for obtaining a residence permit, permanent residence, citizenship

A businessman who moves to Denmark and starts his own business automatically receives a residence permit for a period of one year. The residence permit must be confirmed annually by submitting reports on successful business conduct and integration into Danish society.

After three years, an entrepreneur can apply for permanent residence, and seven years after receiving it, for full citizenship.

Dual citizenship is prohibited in the country, therefore, after receiving a Danish passport, you will have to refuse a Russian one.

Buying a ready-made business and starting from scratch

Danish law does not distinguish between a migrant who starts a business from scratch or who has bought a business from a local entrepreneur.

All that matters:

• Minimum investment threshold 50,000 euros;
• Personal participation in maintenance;
• Job creation for Danes.

The most common business options among Russian emigrants

Private traders should pay attention to animal husbandry - according to statistics, this is the most extensive field of activity in the country. Russians in large cities often invest in the service sector or open a small cafe: the costs will be small, and the return on investment will be high.

IT businessmen often move to the country - despite high taxes, Denmark has an excellent standard of living combined with the climate that Russians are used to. Most of the visiting specialists open individual entrepreneurship and work in their specialty.

Business ideas with minimal investment

As in any country in the world, a quality restaurant, auto repair shop or atelier will be popular in Denmark. Danish cities are small, so without a specific business idea it is worth attracting as large a group of people as possible.

Online delivery services are becoming more and more popular every year. Danes have relatively a lot of free money, so they are willing to pay extra for quality service. Unusual services will not only increase the company's revenue, but also attract the attention of potential buyers.

Legal nuances

When registering, it is worth considering the peculiarities of Danish legislation. Despite the simplicity of registering a startup in the country, any failure to comply with formal conditions will lead to a refusal. The working documentation of the country can be drawn up in both Danish and English, which simplifies interaction for the first time after the launch of the company.

Business registration

Three types of company ownership are open to migrants:

1. Limited Liability Company, ApS. Liability is limited to the authorized capital, the minimum requirements are 125 thousand CZK... Managed by a director;
2. Joint Stock Company, A / S. Authorized capital not less than 500 thousand kroons, managed by a board of directors of 3 or more people. The company's reporting is publicly available;
3. Self-employed, Enkeltmandsvirksomhed. The most widespread form of activity in the country. The owner personally manages the business and is responsible for his own property.

Bureaucratic procedures in Denmark are kept to a minimum. You can register a corporation literally in one working day, without leaving your home.

Registration is carried out in four stages:

1. Obtaining a digital signature, NemID. Issued separately for each founder and employee through the official website https://www.nemid.nu. The first three signatures are free, the next ones will cost 10.5 euros each one. The procedure takes no more than a day;
2. Registration of an account with a bank in Denmark and deposit of the authorized capital. The special account is credited at least 50 thousand kroons, registration is carried out free of charge during the working day;
3. Registration of the company in the DBA register. Also performed through an online service https://indberet.virk.dk/, VAT registration takes place in the same service. The cost of registration is 90 euros, the duration is one day. Upon completion of registration, the company receives a unique CVR code confirming the completion of registration;
4. Insurance of employees against accidents and occupational injuries.

There is an extensive list of areas for which a special permit is required in Denmark. A list of such works can be found on the websitehttps://danishbusinessauthority.dk

Taxation

Denmark has progressive taxation - the higher the company's income, the heavier the tax burden will be. There are benefits for new companies and foreign employees, but in general it cannot be said that the country has low taxes.

The main rates in 2021 are as follows:

• Income tax - up to 58.5%, one of the tallest in the world;
• VAT - 25%;
• Corporate tax - 22%;
• Dividends - 25%.

Tips for Danish Business Immigrants

The main advice for all migrants to the Schengen area will be to comply with the law to the letter. Often, emigrants from the former CIS cannot legally confirm the origin of capital - you should not draw up fictitious documents or issue a loan to yourself. Such fraud can lead to the loss of a visa and the closure of borders for the applicant.

You should not save on the service - if in the first days after the opening of an interesting establishment the client can understand and forgive some shortcomings, then in a couple of months this can become a critical problem. It is important to understand that the native people of Denmark learn more about new places through word of mouth, and a bad impression of a company can lead to its failure.