The methods of distribution in Denmark are varied and depend heavily on the type of product. The market is well-developed, with established channels for both industrial and consumer goods.

While traditional importing agents and distributors are still used, major retail and department stores are increasingly opting for direct importation. The non-food retail sector is heavily dominated by large chain stores.  

The Danish food retail sector has undergone significant consolidation and remains dominated by two large retail chains: Salling Group and Coop Danmark. These two groups, along with the growing presence of discount chains like Rema 1000 and Lidl, collectively account for the vast majority of the food market. It’s important to note that Salling Group has recently acquired 33 supermarkets from Coop Danmark, a move approved by the Danish Competition Council in early 2025, which further solidifies Salling’s market position. Both Salling Group and Coop Danmark operate substantial in-house wholesale and import divisions. Despite the dominance of these major players, there are still a number of significant independent food product importers in Denmark.

Using an Agent or Distributor

• Using an agent or distributor is a common and effective strategy for foreign companies entering the Danish market, but it is not legally required. Because an agent does not assume the commercial risk, their relationship is governed by the Danish Commercial Agency Act. This law, based on an EU directive, provides certain mandatory protections for the agent, particularly regarding notice periods and termination compensation. In contrast, distributors operate on their own account and risk. They buy products from the foreign company and then resell them in their own name, setting their own prices and managing their own inventory. This relationship is not subject to the specific rules of the Commercial Agency Act but is instead governed by general contract law.
   
• To find a suitable partner, foreign companies can utilize various resources, in addition to support provided by the U.S. & Foreign Commercial Service. Industry-specific trade associations, such as the Danish Chamber of Commerce, often provide directories of commercial agents. Additionally, attending trade fairs and using professional business directories can help identify and vet potential agents or distributors who have a strong presence and network in the desired sector.

Establishing an Office 

• To establish a local office in Denmark, foreign companies can opt for either a private limited company (ApS) or a branch office, with the ApS being the more common choice due to its limited liability. The process is known for being efficient, highly digitalized, and business-friendly, making Denmark a top-ranked country for ease of doing business. The steps generally involve selecting the legal entity, registering it with the Danish Business Authority to obtain a Central Company Register Number, and then registering for tax and VAT with the Danish Customs and Tax Administration.
   
• Once the core registrations are complete, the company will need to set up a business bank account, acquire a digital ID like MitID, and establish a NemKonto for seamless communication and transactions with public authorities. If hiring local staff, the company must also register as an employer and ensure its payroll system complies with Danish labor laws. While the process is straightforward, many foreign investors choose to work with local legal or accounting firms to navigate the details and ensure full compliance. For the latest Investment Climate Statement (ICS) which includes information on investment and business environments in foreign economies pertinent to establishing and operating an office and to hiring employees, visit the U.S. Department of State’s Investment Climate Statements website. 

Franchising

• Franchising is a well-established and popular model for market expansion in Denmark, particularly in sectors like retail, fast-food, and services. The Danish legal framework is generally considered favorable for foreign franchisors, as it is characterized by a lack of heavy pre-contractual disclosure or specific registration requirements. Instead, the relationship is primarily governed by general contract law, which upholds the principle of “freedom of contract.” This means that the terms of a franchise agreement can be largely determined by the parties themselves.
   
• While the Danish legal system grants significant contractual freedom, it is important to note that Danish courts can intervene and adjust or invalidate clauses that are deemed unreasonable or one-sided, especially if there is a significant imbalance of bargaining power between the franchisor and the franchisee. This legal principle ensures a degree of protection for the franchisee. 

Direct Marketing

• The Danish direct marketing landscape is primarily governed by the Danish Marketing Practices Act and is notably strict, especially concerning unsolicited communication. Companies are generally prohibited from sending unsolicited electronic marketing, such as emails or text messages, unless they have obtained explicit, prior consent from the recipient. This “opt-in” model contrasts with the “opt-out” approach found in some other countries. An exception exists for existing customer relationships, where a company can market its own goods or services similar to those previously purchased, but only if the customer was given a clear and easy way to opt out at the time of data collection and in every subsequent message. For addressed mail or telemarketing, companies must check against the “Robinson list,” a national opt-out registry, before contacting consumers. The Danish Consumer Ombudsman is the authority responsible for supervising compliance with these regulations.

Joint Ventures and Licensing

• Joint ventures and licensing in Denmark are not governed by a single, specific set of laws but are instead regulated by general contract law and, importantly, Danish and EU competition law. There are no formal requirements for the formation of a contract, and while oral agreements are legally binding, a written contract is highly recommended to clearly outline terms and intellectual property rights. For joint ventures, agreements must comply with competition law, and if a venture’s combined annual turnover in Denmark exceeds certain thresholds, it may require prior notification and approval from the Danish Competition and Consumer Authority. Licensing intellectual property - such as patents, trademarks, or copyrights - is a common practice, and while there are no specific licensing laws, the process is facilitated by Denmark being a signatory to most international intellectual property conventions. For a U.S. company, it is crucial to understand that the transfer of contracts and other rights often requires third-party consent under Danish law.

Express Delivery

• Denmark has a well-developed and reliable express delivery infrastructure, with major international firms like FedEx and DHL operating alongside domestic companies. The time for express delivery from large U.S. cities is typically between 1 to 3 business days, depending on the service level chosen. When it comes to customs, Denmark, as part of the European Union, has specific procedures and de minimis values. For imports from outside the EU, VAT is always charged regardless of the value of the goods. Customs duty, however, is only applied to shipments with a value exceeding 150 EUR (approximately $160). It is common for the express carrier to handle the customs declaration and payment of VAT and duties on behalf of the recipient, who is then billed for these charges along with a handling fee. While it is possible for the recipient to handle the customs declaration themselves, this must be arranged in advance with the carrier.

Due Diligence

• Legal and Financial Standing: Verify the company’s registration status and financial health. The Central Business Register (CVR), managed by the Danish Business Authority, is a crucial public database that provides information on a company’s registration, ownership structure (including beneficial ownership), and financial reports.
• Compliance: Conduct a thorough check for compliance with Danish law, particularly in areas like marketing practices and data protection (GDPR), which are strictly regulated.
• Reputation and History: Perform a check for any negative media reports or a history of legal disputes or regulatory violations.
• Intellectual Property: Confirm that the business partner has the legal rights to use and exploit any trademarks, patents, or other intellectual property necessary for the business relationship.