Denmark by Partner, Attorney at law Niels Christian Døcker

Denmark
by Partner, Attorney at law
Niels Christian Døcker
Today’s
You willmenu
learn
• General overview about Denmark
• Business opportunities in Denmark
• How to set up your business in Denmark
• Legal framework
• Taxation
• Migration
• A few DOs and DON’Ts
• Best kept secret…
About Denmark
Size:
43,098 km²
Population:
5,584,758 (126.4 per km²)
Political system:
• Constitutional monarchy
• Government: Coalition of The Social
Democrats, The Social Liberals and The
Socialist People’s Party. First female Prime
Minister, Helle Thorning-Schmidt (since
October 2011)
About Denmark
GDP
Euro 47,000 per capita (IMF) (rank 7)
Economy
• Denmark is characterized by political,
economic and regulatory stability. Denmark
has an open economy largely relied on foreign
trade and international cooperation. The
investment policy of Denmark is very liberal
and encourages foreign investment
About Denmark
Strong in
• Wind energy – Vestas;
about 20% of
the world’s wind turbines supplied by Danish
based companies. 22% of the electricity used in
Denmark is generated by Danish wind power. The
aim is 50%
• Shipping world’s biggest within
container shipping.
• Pharmaceutical products and medical equipment
–
world’s biggest within insulin
About Denmark
Strong in
• Enzymes for food production • Hearing aids and
• Design and art (fashion, furniture, porcelain
and jewelry) –
and
• Expanding market in the farming sector –
Polen Invest, affiliated with Axzon
• Clusters
Mobile
ITC
Textile
Machinery
Equipment
Cleantech
Fishing
Oil
Gardening
Pharma
Biotech
Medtech
SHQ
IT
Cleantech
Entertainment
About Denmark
Labour market
• The Danish “flexicurity” model offers a high
flexibility in hiring and firing practices.
• 75% of Danish workers belong to a union
• “Minimum wage” app. Euro 14
• Reasonable working hours
• High productivity
About Denmark
Highly qualified and motivated talent pool
• 96 percent of young people complete a
secondary education program and 47 percent
a tertiary one.
• English proficiency is in the world’s top three.
4 out of 5 speak English and half the Danes
speak German.
About Denmark
The perfect hub
• Copenhagen Airport is the main hub in the Nordic
and Baltic region with 57 operating airlines
serving altogether 132 destinations and handling
approximately 380,000 tons of airfreight each
• Besides Copenhagen, Denmark has three other
international airports in Aalborg, Aarhus and
Billund, all located on the peninsula of Jutland
About Denmark
• Surrounded by water. Makes for easy
transportation of heavy goods
• Often day-to-day delivery in the whole of
Scandinavia, which benefits the Danish
infrastructure
Business opportunities
Word in Town:
• "Denmark, the most business friendly climate
in Europe"
- World Bank, Doing Business Report 2013
• "Denmark is no.1 for commercial success"
- Goldman Sachs, 2012
• "The Nordic countries are probably the best
governed in the world"
- The Economist, 2013
Business opportunities
• Foreign-owned subsidiaries or branches have
the same access to finance as Danish
companies
• Foreign investors (including non-EU nationals)
do not need an investment permit to establish
a branch
• Import/export - In general little restrictions
Business opportunities – Where to invest?
The Shipping Industry
• Home to the world’s largest shipping company, A.P. Møller-Mærsk Group,
and other major players like Torm, DFDS, J. Lauritzen, Svitzer and Norden,
Denmark is a world-renowned and highly international hub for all types of
shipping activities
• Set up your shipping business in Denmark and get immediate access to:
– World class shipping know-how and a vital business network
– Universities and R&D institutions with maritime competences and a strong
tradition of transferring and applying academic, technical knowledge to
businesses
– An attractive tonnage tax regime in DIS, the Danish International Ship Register
– Stable and competitive framework conditions
Business opportunities – Where to invest?
The Offshore Sector
• The sector deals with oil and gas exploration, offshore wind
power generation, wave energy development and various
offshore support functions like engineering, material
development, logistics, safety, facility management and
training
• Towards 2020 the construction of the Fehmern Belt
Connection will result in investments of around 5 billion EUR
Business opportunities – Where to invest?
Wind Power
• Wind power companies looking to conduct production,
research and development, project management, sales and
testing in Denmark, will benefit from a unique industry that
comprises world leading players like Vestas, Siemens Wind
Power, Suzlon and Envision in one sector.
• Some good reasons for investing in the sector:
– Access to a complete value chain of sub-suppliers and professional
services
– A combined turnover of EUR 6.6 billion in the industry ensures a high
degree of market knowledge
Business opportunities – Where to invest?
The Financial Sector
• Financial crisis to put financial sector in a tight spot (13 bankruptcies since
2008)
• The ”bank packages” along with other government actions to secure
depositors
• Still substantial need for financing through out the sector
– Potentially a good portion of money to be made in this area
– However, the rules for investing and acquiring shares in the financial sector has been
greatly tighten due to the latest recession and new rules about money laundering
How to set up your business
• Legal framework
• Taxation
• Migration
Legal Framework
• No need for boards in private limited companies
• Easement of audit demands
• Electronic general meetings
Legal Framework
• Instant online registration of limited companies
• Low minimum capital:
• Private limited companies Euro 10,700 (soon to be
lowered to Euro 6,700)
• Public limited companies Euro 67,100
• No notary required
Legal Framework
• Restrictions regarding acquisition of real
estate
• Persons who are not resident in Denmark and have not
previously lived in Denmark for a period of 5 years can
only acquire title to real estate with permission from
the Ministry of Justice
– The same applies to corporations, associations, public or
private institutions, foundations and endowments that are not
domiciled in Denmark, as well as foreign government agencies
Legal Framework
Court Handling
• Easy accessible – first instance app. 10-14
months
• Highest possible court fee Euro 10,000 (same
amount if appeal)
• Low damages – calculated according to loss
Case law regarding tort stipulates low
amounts
• Awarded low cost recovery
Taxation
• Corporate tax is 25%, (22% in 2016?)
• No tax on dividends to most foreign
companies provided more than 10%
ownership  below 10% the tax is 28%
• Tax on dividends to foreign natural persons
(27/42%)
• No capital gains tax on sale of shares made by
foreign natural persons and companies
Migration
• Permission to work and stay in Denmark depends on
nationality and qualifications
Special rules for EU-citizens and those related to them
• Permission to work and stay is based on a commercial
and employment consideration
The need for the skills offered in contrast to whether a
person already staying in Denmark could manage the job in
question
Migration
•
Special rules makes it easier for highly qualified and
educated people to receive a working and residence
permit:
•
Scientists and researchers
•
People with special educations which is on demand in
Denmark
•
People with a certain ”higher than average” sallery
•
People coming to work via affiliated companies
•
People who wish to establish an independent commercial
enterprise
Migration
•
Family and children can migrate along with the residence
seeker under certain conditions, e.g.:
•
•
•
•
Marriage
Self-dependence, both financially and/or educational
Own residence
–
Depends on which grounds permission to work and stay was given and on the
duration of the stay
Benificial taxes
•
App. 32% compared to app. 55.5% on personal taxes for up to 5
years
•
Requires annual salary of app. Euro 111,750 and employment with
Danish registered company
To sum up – investing in Denmark
•
•
•
•
•
•
•
•
Easy access to the entire European Union
Flexible labour market
Highly qualified and motivated talent pool
Bribery and corruption is practically unknown
Dialogue between business and law makers
Highest worker motivation in Europe
Easy plug 'n play business set-up
A world leader in cleantech (25% of total energy
compared to US with less than 3%) and life sciences
• 25% corporate tax (22%?) and advantageous taxes for
foreign employees
A few DOs and DON’Ts
• Work - DOs
•
•
•
•
•
Participate/share opinions
Work independently
Admit mistakes
Look up social activities yourself
Motivate if you are a manager (challenges and
professional development)
• Informal and direct
A few DOs and DON’Ts
• Work - DON’Ts
•
•
•
•
•
Eat lunch alone
Question the religion of colleagues
Be late
Give orders, but provide explanations
Work too late if you have family
Learn more
• Copenhagen Capacity (www.copcap.com)
• Invest in Denmark (www.investindk.com)
THANK YOU!
Niels Christian Døcker
Partner, Attorney at law (L)
Dir.: + 45 33 300 241
Cell: 27 10 04 02
[email protected]