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flag Denmark Denmark: Operating a Business

Setting Up a Company | Working Conditions | Cost of Labor | Social Partners

Setting Up a Company

Legal Business Entities

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability
Anpartselskab (ApS) is a Private Limited Company
 
Minimum DKK 80,000 totally subscribed and released.
One or more
 
Liability is limited to the amount contributed.
Aktieselskab ( A/S) is a public limited company.
 
Minimum DKK 500,000 totally subscribed and released.
One or more
 
Liability is limited to the amount contributed.
Interessentskab ( I/S) is a general partnership.
 
No minimum capital.
Minimum 2 partners.
 
Partners' liability is indefinite and several.
Kommanditselskab ( K/S) is a limited partnership.
 
No minimum capital.
Two types of partners: active partners and sleeping partners
 
Liability of active partners is unlimited. Liability of sleeping partners is limited to the amount contributed.
 
The Competent Organization
The Danish Commerce and Companies Agency (DCCA) handles the registration of the company and issues a CVR-number.
Search a Company or a Financial Report
Danish Exporters, Company and Product Research
Central Business Register
 
Setting Up a Company Denmark OECD
Procedures (number) 4.0 5.6
Time (days) 6.0 13.8

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Denmark.
Central Business Register (CVR)

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Working Conditions

Legal Weekly Duration
37 hours
Retirement Age
65
Working Contracts
Permanent contract, fixed-term contract, training contracts.

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Cost of Labor

Minimum Wage
No legally mandated national minimum wage. Collective agreements are the main mechanism used for regulating low pay.
Average Wage
USD 24,000 a year.

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Social Partners

Social Dialogue and Involvement of Social Partners
Many employers are members of the Danish Employers’ Confederation (Dansk Arbejdsgiverforening/DA) or one of the special employers’ associations (e.g. the Financial Sector or Agriculture). Employees are often members of the relevant trade union (Metal Workers, Commerce and Office etc), although most of these unions are also members of the ”umbrella” employee confederation, The Danish Federation of Trade Unions (Landsorganisationen/LO), a service organisation that undertakes to negotiate or co-ordinate various matters common to all trade unions. The labor market is thus to a very large degree regulated by collective agreements.
Unions
Unionization Rate
80%
Labor Regulation Bodies
Danish Employers' Confederation (DA)
National Labor Market Authority

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Learn more about Operating a Business in Denmark on Globaltrade.net, the Directory for International Trade Services.
 

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Last Updates: January 2012