Denmark is always rated among the most favorable countries to do business in the world, with a clear regulatory environment, a highly skilled labour force and an innovative culture. To the ambitious businessman or long-term investor who has an eye on growth, it is a prime land to plant. Nevertheless, to enter such a vibrant market, it is necessary to withstand a particular and strict immigration procedure. Denmark does not just sell visas but invites business talent in a strategic manner that can add to its economy and provide jobs to its citizens. The first step to a successful application is to understand this philosophy.
The process to take by a non-EU/EEA entrepreneur is mainly based on two schemes: the Startup Denmark scheme, and the Establishment Card, which usually leads to the Self-Employment scheme. They are all useful to different kinds of businesspeople and have their own challenges and opportunities.
The two ways: Innovator or Entrepreneur.
The business immigration system
The business immigration system of Denmark is made to distinguish between the groundbreaking innovator and the one who wants to set up a more traditional small business. It is important to make the right choice.
The Startup Denmark scheme: To the Innovators
The scheme would suit foreign entrepreneurs who have a revolutionary business idea that can generate employment and growth in Denmark. It does not aim to open a local restaurant or a local retail store; it is aimed at scalable and innovative enterprises.
The Core requirement: The biggest challenge lies in getting a recognition letter with a Danish-approved facilitator. These facilitators are a select list of private incubators, accelerators, venture funds and university science parks that the Danish government believes to be able to evaluate business potential. One of these entities needs to be convinced that your idea is new, practical and has a growth plan in Denmark. This is the validation of the application obtained externally.
Financial means: You need to demonstrate that you have enough money to take care of yourself and any relatives you bring with you. The sum is revised every year, but it is calculated to meet the living costs without having to get benefits in the form of the state.
The Permit: A Startup Denmark permit is normally given for a term of two years and is renewable. It will enable you to live in Denmark to build your business. It should be mentioned that this is not a permanent guarantee but a residence permit to set up the business. You will be required to show improvement.
The establishment card & self-employment: For proven professionals
It is a more conventional path for those who desire to start or own business in Denmark, or be freelancers serving the Danish market.
The Establishment Card ( Opholdstilladelse til at etablere virksomhed): It is an annual residence permit which serves as a scouting visa. It allows you the right of residency in Denmark to prepare to begin business. During this time, you cannot actively operate the business or earn a salary from it. It is aimed at enabling you to do market research, raise funds, acquire premises, and create an entire business plan.
Switching to Self-Employment: Before your Establishment Card expires, you have to apply for a new permit in the Self-Employment scheme. This is the point at which your application is put to the test. Danish Agency on International Recruitment and Integration (SIRI) will perform a comprehensive testing of your business plan according to a particular, positive-point criteria referred to as the terms of approval.
The terms of approval
Your business plan needs to achieve a minimum number of points on a variety of criteria to be awarded a self-employment permit. This system is meant to assess in an objective manner the potential good to Denmark of the venture. Examples of major areas of assessment are:
- Business Plan: How well, realistic and clear your plan is.
- Your qualifications: Your work experience and education.
- Financial capital: The capital you are putting into the business. The more money one invests, the more points.
- The business model: Does the business scale? Is it export potential?
- Creation of jobs: An important element. In your business plan, there must be a clear indication of how many jobs may be created for the residents of Denmark or EU citizens.
Life after the approval and application process
All business permits are applied for online to SIRI. It includes a full package of documentation, your passport, educational diplomas, evidence of funds, and, above all, your business plan. And, in this case, the facilitator recognition letter is in the case of the Startup scheme. Upon approval, you will be given a residence and work permit which is linked to your own business. You are supposed to be an active manager and developer of this business. You can check or report regularly on your progress. After some years of legal and uninterrupted residence, one is able to apply to be granted permanent residence.
Conclusion
Business immigration to Denmark cannot be seen as a transaction, but rather as a proposed partnership. The Danish government is presenting you with access to its steady, progressive economy, with the condition that you will indeed contribute to it.
To be successful, one needs not only a great idea or capital but careful preparation, the knowledge of the local market and a business idea which will fit the national interests of Denmark. To the creative genius capable of winning the support of a facilitator, or the experienced executive with a solid business plan and lots of points. The payoff is enormous. It is the opportunity to create a future in one of the most prosperous and balanced societies in the world, making the entrepreneurial ambition become a real Danish business.
You can also view these posts:
Things to know before immigrating to Denmark
Getting Denmark’s passport
Property prices in Denmark
