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Employ Candidates Compliantly in Denmark

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  1. Overview: Denmark
  2. Global PEO and Payroll
  3. Global HR Compliance
  4. Work Permit for Hiring Expats via Global EOR
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
  7. Global Payroll Calculator
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“The Global Expansion Guide: How To Grow Fast and Limit Risks Without Setting Up A Company In Denmark”

Become An International Business And Gain Presence in Denmark Without The Risk Or Expense Of Setting Up a Company.

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to understand the key global expansion factors that make the difference between success and failure

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In this guide you’ll learn how to:

  • Attract and compliantly pay commission-based sales reps
  • Develop international sales and extra revenue opportunities, without setting up own companies overseas
  • Enter more markets, test the markets before getting established there, and easily withdraw from the unattractive countries
  • Avoid legal and compliance risks
  • Design an efficient system of international sales with a strong team of global salesforces

The key to expanding seamlessly into Denmark is finding and effectively managing local people. Just a single pair of boots on the ground is a game-changer. Immediate revenue increases with a skilled globally distributed salesforce, or expedited growth with foreign local IT pros; all benefits of a strong international team and presence in the global marketplace.

However, if your company is trying to go global, or is already in those early stages, chances are that you’re starting to understand how complicated global operations can be.

Learn How You Can Expand Your Business Globally Through Employment Fast, Easily, And Risk-Free!

Why Local Entity Establishment Isn't the Best Way to Expand Globally

Cost, Time, and Capital-Consuming

Establishing a local entity involves a significant financial investment and time commitment. The process can be cumbersome and capital-intensive, from navigating regulatory approvals to setting up compliant business practices. Not to mention the additional costs that can accrue from legal advice, accounting services, and human resources management. All these commitments can strain your financial resources and divert attention from your core business operations.

Challenging to Divest

If you're merely testing the waters in a new market, a local entity can quickly become a liability rather than an asset. Winding down a legal entity can be as complex and time-consuming as setting one up, involving bureaucratic hurdles, asset liquidation, and potential severance pay. Plus, there are costs associated with dissolving the business, including legal fees and financial penalties for early termination of contracts or leases. The process can be draining and disruptive, with lingering financial and reputational risks.

Regulatory & Compliance Burden

Operating a local entity means continuously adhering to local laws and regulations, which can vary significantly from one jurisdiction to another. Non-compliance could result in substantial fines, legal repercussions, or irreparable damage to your brand's reputation. Moreover, the need to continuously monitor legal changes adds a layer of complexity and risk. Keeping abreast of all these regulations often requires specialised knowledge and can consume valuable time and resources that could be better invested in growth activities.

Why Partnering with a Global EOR is a Risk-free and Lightweight Alternative to Entity Establismnent

Partnering with a Global Employer of Record (EOR) like Express Global Employment offers a streamlined, cost-effective alternative to establishing a local entity. A Global EOR absorbs the complexities of employment, from compliance to payroll, freeing you to focus on your core business activities.

Leveraging Global EOR's established infrastructure can considerably expedite your time-to-market, allowing for agile responses to market dynamics without the risks tied to long-term investment.

The ability to rapidly scale up or down offers flexibility, which is especially valuable when testing new markets. It eliminates the need to invest heavily in an unproven market, mitigating financial risks and potential losses.

Permanent Establishment Risk

What Is Permanent Establishment?

Permanent Establishment (PE) is a crucial concept in international taxation, which may obligate a foreign business to pay taxes in a country with significant business activities but not a legal entity. The term denotes a fixed place of business, often triggering local taxation and compliance requirements.

What Triggers Permanent Establishment Risk?

Permanent Establishment risk can be triggered by activities such as having a physical office, storing inventory, or employing staff in a foreign country for an extended period. Even certain contractual agreements and decision-making processes locally can result in a PE designation.

How to Achieve Compliance - What to Watch?

Awareness of local laws and international tax agreements is essential to mitigate PE risk. Monitoring the duration and nature of activities in a foreign jurisdiction is critical. Also, proper documentation and structure of contracts can play a pivotal role in avoiding a PE status.

How a Global EOR Can Help You Avoid Permanent Establishment Risk

Partnering with a Global Employer of Record (EOR) like Express Global Employment can significantly reduce your PE risk. A Global EOR takes on the employer's responsibilities, thus eliminating the need for your company to establish a legal entity in foreign jurisdictions. You can leverage the established employment infrastructure of a Global EOR, ensuring compliance without the administrative burden of setting up and operating a separate legal entity abroad.

Next Step

Recruitment and Employee Onboarding in Denmark

  • Navigating Legal Requirements: Employee onboarding and payroll in Denmark necessitate adherence to specific legal protocols and norms for employers. It's important to understand that setting up a company in Denmark typically takes around three months.
  • Considering Liquidation: It's crucial to plan for the potential need for liquidation should you decide to withdraw from the Danish market. This process can vary in complexity depending on the country.

Express Global Employment Services

  • Employment Delegation: Delegate the employment of your Danish salesforce to Acumen International, which acts as a local legal employer.
  • Payroll and HR Management: Acumen International will handle local payroll and HR responsibilities and process business expenses, including disbursing allowances and benefits to your employees in Denmark.

Support for Expatriate Personnel

  • Facilitating Work Permits and Visas: We assist in obtaining work permits and visas for your expatriate staff who need to be employed in Denmark.

Maintaining Control as the Original Employer

  • Decision-Making Authority: As the original employer, you maintain control over compensation, role responsibilities, project assignments, and termination.
  • Legal Employer of Record Role: We act as the employer of record for your workforce, freeing you from direct legal obligations and allowing you to focus on business development.

Simplified Candidate Recruitment

  • Identifying Suitable Candidates: Your role is to identify candidates (or convert current freelancers or independents into employees), and we handle all ensuing procedures.
  • Additional Recruitment Support: Besides Professional Employer Organisation (PEO) and Global Employer of Record (EOR) employment services, we also offer assistance in the recruitment process, ensuring a comprehensive solution for your expansion into Denmark.
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