ABOUT DENMARK

Amongst all the countries in Europe, Denmark, officially the Kingdom of Denmark, is a Nordic country located in Northern Europe. It comprises the Jutland Peninsula and numerous islands, connecting to the Baltic and North Seas. Denmark is renowned for its high quality of life, strong welfare state, commitment to sustainability, and advanced technology. The capital of Denmark is Copenhagen, which is its largest and most populous city, serving as the country’s primary economic, cultural, and administrative hub. According to the World Bank, Denmark is classified as a High-Income Economy, consistently ranking among the top countries globally for competitiveness, innovation, and ease of doing business. The currency of Denmark is the Danish Krone (DKK), which is pegged to the Euro. The value of 1 Indian Rupee is approximately 0.0827 Danish Krones (or 1 DKK is approximately 12.09 INR) as of today’s exchange rates (June 2025). The population of Denmark is estimated to be around 5.95 million in 2024. Its neighbouring country is Germany to the south, and it is connected to Sweden via the Øresund Bridge. The official language of the country is Danish, with English widely spoken and understood across the population, especially in business circles. The majority of the Danish population identifies as Evangelical Lutheran, with smaller communities of other faiths. Currently, Denmark has several international airports, with Copenhagen Airport (CPH) being the largest and main international gateway, alongside Billund Airport and Aarhus Airport, facilitating excellent global connectivity. As Denmark is surrounded by water, it has numerous key commercial seaports, including Copenhagen, Aarhus, Fredericia, and Esbjerg, which are crucial for facilitating international trade, particularly with the Nordic region, the UK, and Germany.

The corporate income tax rate in Denmark is a flat 22%, which is competitive among Western European nations. Denmark offers a transparent and stable tax environment with few hidden charges. While direct tax holidays are not common due to EU regulations, various incentives are available for research and development (R&D) activities, green investments, and attracting highly specialized foreign labor. As an EU member, Denmark also benefits from EU funding opportunities for specific projects. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a rental property for your office.

Establishing a business in Denmark is highly streamlined and transparent, consistently ranking among the easiest places globally for business setup. Its EU membership ensures a harmonized legal framework and ease of operations within the single market. Invest in Denmark is the primary government agency assisting foreign investors. A foreign investor who is planning to start his business in Denmark can form various company types, such as a Private Limited Company (Anpartsselskab – ApS), a Public Limited Company (Aktieselskab – A/S), or a Branch Office. A Private Limited Company (ApS) is the most common and flexible form, allowing 100% foreign ownership and requiring a relatively low minimum share capital (DKK 40,000, approx. EUR 5,300).

In case an investor is planning to establish an ApS in Denmark or a corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Denmark and we will also guide you about how to follow the procedure while formulating your company in Denmark.

Types of Business which can be started in Denmark:

• Renewable Energy & Cleantech: Denmark is a global leader in wind energy, sustainable solutions, and green technologies. Opportunities are immense in offshore wind power, energy efficiency, smart grids, bioenergy, water management, and circular economy solutions.
• Life Sciences: A robust sector encompassing pharmaceuticals, biotechnology, and MedTech. Opportunities lie in R&D, clinical trials, manufacturing of innovative drugs and medical devices, and digital health solutions, leveraging Denmark’s strong research infrastructure and healthcare system.
• Information & Communication Technologies (ICT): Denmark boasts a highly digitized society and a strong tech ecosystem. Opportunities exist in software development, cybersecurity, AI, fintech, IoT, Big Data, and IT services, particularly for smart city solutions and digital transformation.
• Maritime & Logistics: With its strategic location and efficient ports, Denmark is a key maritime hub. Opportunities are vast in shipping, logistics optimization, port development, maritime technology, and green shipping solutions.
• Food & Agriculture (High-Tech): Known for its high-quality food production, opportunities are in advanced agricultural technology (AgriTech), sustainable food production, food processing, ingredients, and innovative food solutions.
• Advanced Manufacturing: Focus on high-tech manufacturing, automation, robotics, and Industry 4.0 solutions, particularly for specialized machinery and components.
• Design & Architecture: Opportunities in sustainable design, urban planning, and architecture, leveraging Denmark’s global reputation for design excellence.

Advantages of Starting Business in Denmark:

• Highly Skilled & English-Speaking Workforce: Access to a well-educated, flexible, and highly productive workforce with excellent English proficiency.
• Innovation & R&D Ecosystem: A strong culture of innovation, significant R&D investments, and world-class research institutions.
• Transparent & Stable Business Environment: Low levels of corruption, efficient public administration, and a highly predictable legal and regulatory framework.
• Strategic Location: Gateway to the Nordics, Baltic Sea region, and Continental Europe.
• High Quality of Life & Social Stability: Attracts and retains top international talent.
• Strong Welfare State: Provides excellent public services and a flexible labor market (“flexicurity”).
• EU Membership: Ensures seamless access to the EU single market.

Business Opportunities for Indians in Denmark:

There are excellent business opportunities in Denmark for new investors who are planning to start their business abroad. Denmark, with its advanced economy and focus on high-value sectors, is a prime destination for Indian companies looking to innovate, access premium markets, and collaborate on cutting-Danish investors, with their strengths in IT services, pharmaceuticals, biotechnology, renewable energy, and sustainable solutions, can find significant avenues for investment and partnership. Indian IT companies, in particular, have a strong track record of success in Denmark.

Imports & Exports:

Many goods are imported and exported from Denmark. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Denmark to India:

• Medicinal and pharmaceutical products
• Machinery and mechanical appliances
• Electrical machinery and equipment
• Optical, photographic, cinematographic, measuring instruments
• Plastics and articles thereof
• Dairy products
• Wind power components and technology

Major items which are imported in Denmark from India:

• Articles of apparel and clothing accessories
• Organic chemicals
• Textile yarns and fabrics
• Footwear
• Machinery and mechanical appliances
• Iron and steel products
• Vehicles and parts

Manufacturing:

Opportunities in manufacturing are primarily in advanced and specialized areas, focusing on high-tech solutions, automation, and sustainable production. This includes medical devices, pharmaceutical products, wind turbine components, and specialized machinery, leveraging Denmark’s R&D capabilities and access to high-value supply chains.

Mining:

Denmark has very limited mining activities due to its geological composition. Its natural resources focus more on oil and natural gas in the North Sea (though declining) and geothermal energy. Opportunities in traditional mining are negligible.

Major Indian companies which are currently working in Denmark:

Several prominent Indian companies have established a presence in Denmark, particularly in the IT and pharmaceutical sectors:

• Tata Consultancy Services (TCS): Has a significant presence, providing IT services and solutions.

• Wipro: Another major Indian IT services company with operations in Denmark.

• Infosys: Also operates in the Danish IT consulting and services market.

• Lupin: An Indian pharmaceutical company with a market presence.

• Torrent Pharmaceuticals: Has expanded its presence in the Nordic region, including Denmark.

• Other IT and R&D focused Indian firms: Many smaller to medium-sized Indian IT, engineering, and R&D service providers have operations or partnerships in Denmark.

• GDP = $400.0 billion (2024 est.)

• GDP Growth = 1.6% (2024 est.)

• Ease of doing business rank = 4 (2020 – Note: The World Bank discontinued this report, but this is the last available ranking.)

• GDP per Capita = $67,230 (2024 est.)

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