Guidance

Overseas business risk: Denmark

Updated 19 January 2021

Information on key security and political risks which UK businesses may face when operating in Denmark

Political and economic

General

Denmark is a small, open economy with a strong tradition for global trading. The attractions for companies doing business in Denmark include: widespread use of English; an informal business environment and little bureaucracy. Danish FDI to the UK has increased steadily over the years and UK/DK trading relationship is strong. Current opportunities in Denmark include infrastructure, cleantech, ICT, and professional services. See Exporting to Denmark for further information.

Politics

Denmark is a stable democracy traditionally with minority governments. It is currently a Social Democrat minority coalition government. Successive governments have been pursuing a course of economic reforms to improve competitiveness and ensuring the economy is in a good position to deal with an ageing population. The current government came into office in June 2019 and the next election will take place latest by spring 2023.

Economy

The Danish economy is doing well and is close to capacity in some sectors due to labour shortages.GDP Growth in 2019 was 2.8% against 2.2% in 2018. 2020 will be impacted by the COVID-19 pandemic, but due to a strong economy during the past 10 years with balanced budgets Denmark is expected to have a quick economic recovery from the pandemic.

The Danish currency has been pegged first to the Deutschmark (since 1987) and then the Euro. Any change to monetary policy has on numerous occasions been ruled out.

Business and human rights

Denmark has a long political tradition and wide political support for its human rights activities. There are no major business and human rights issues in Denmark. The Danes have their own national human rights institution, the Danish Institute for Human Rights, while also adopting several international conventions on human rights and supporting United Nations activities against torture and for the rights of persons with disabilities.

The law provides for the freedom to organise trade unions; all workers are free to form and join unions of their choice. The law allows unions to conduct their activities without government interference.

Bribery and corruption

Bribery is illegal. It is an offence for British nationals or someone who is ordinarily resident in the UK, a body incorporated in the UK or a Scottish partnership, to bribe anywhere in the world.

In addition, a commercial organisation carrying on a business in the UK can be liable for the conduct of a person who is neither a UK national or resident in the UK or a body incorporated or formed in the UK. In this case it does not matter whether the acts or omissions which form part of the offence take place in the UK or elsewhere.

Denmark comes out top in Transparency International’s corruption perception index (CPI) in 2020 and ranks fourth in the World Bank Ease of Doing Business index.

Read the information provided on our Bribery and corruption page

Terrorism threat

Please read the information provided on our Terrorism page

Protective security advice

Crime levels are relatively low in Denmark. Most visits to Denmark are trouble-free, but you should be aware that the tourist season attracts pickpockets and bag-snatchers in crowded areas. Please read the information provided on our safety and security advice page on the FCDO Travel Advice pages

Intellectual property

Protection of intellectual property rights in Denmark is regulated by legislation on patents, utility models, trademarks, collective marks, design, semiconductor products and copyright. For information on registering your Trademark in Denmark, you should contact the Danish Patent and Trademark Office

Please see the information provided on our Intellectual Property page

Contact

Contact the Department for Business and Trade (DBT) team in Denmark for further information.