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Open a Danish Business for Selling Food and Beverages

Updated on Sunday 20th October 2019

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Open-a-Danish-Business-for-Selling-Food-and-Beverages.jpgInvestors who wish to open a Danish business for selling food and beverages need to comply with the requirements for this business sectors as well as obtain the relevant permits, license or authorizations, whichever apply in their case (based on whether they open a restaurant, a shop or a food truck).
 
Company formation in Denmark is one of the most straightforward in Europe. Starting a food business is relatively simple and foreign entrepreneurs can reach out to our team of agents whenever they require specialized investment aid. 
 

Conditions for a business that sells food and beverages in Denmark

 
Investors who wish to start a food business, as well as a combined food and beverages business, will need to meet the requirements for the manufacturing of the food products (whenever applicable), the storage of products, the import requirements (if needed) as well as the conditions for selling beverages and especially alcoholic beverages. 
 
A Danish company that sells foods, imports food from European or non-EU countries needs to be registered with the Danish Veterinary and Food Administration. The registration form will include the following:
 
  • company details: the CVR number, when applicable, the name of the company, address and contact details.
  • the contact person: the name and contact details for the company representative (and address if it is different from that of the company).
  • details for an EU-approved food business: when applicable, the name of the competent authority that has already approved a movable food business that is brought to Denmark.
  • application reason: the appropriate box will be filled in: starting a new business, taking over an existing one, changing a business, etc.
  • type of business: retail, wholesale (when the customers are mostly other food businesses) or others.
 
The filled-in form is sent via e-mail to the Veterinary and Food Administration. A representative usually contacts the applicant if they require any additional details. 
 
Some entrepreneurs may wish to open a food truck or, as it is referred to by the authorities, a mobile street vending establishment. A special permit also needs to be obtained in this case and it is limited to the public roads and areas in the City of Copenhagen. Different conditions apply according to the size of the card. A permit is valid for one calendar year and the Danish authorities usually answer the application within four weeks. 
 
Individuals who open a mobile food vending establishment will need to pay market rent in order to be able to sell in parks. The price is 3000 DKK (approximately 280 euros), excluding VAT. A mobile food vending business must be registered for VAT if the annual turnover is more than 50,000 DKK.
 
It is important to note that food and beverages can be sold in a mobile food vending establishment, however, entrepreneurs cannot sell alcohol, tobacco, chocolates and sweet or over-the-counter medicine. 
 
Entrepreneurs who prefer to handle this step with the help of our Danish company formation agents can reach out to our experts. 
 

How to open a Danish food and beverages business

 
As seen above, the licensing process is a very important step when starting a business for selling food and beverages in Denmark. However, before they can apply for the permit, business owners are required to open a company in Denmark. The main steps are listed below:
 
  1. Choose a business form: investors may choose from several different business forms, from partnerships to private limited liability companies; we recommend the Aps – the private limited liability company. 
  2. Prepare the registration documents: not all business forms have incorporation documents, however, the Aps does require the Articles of Association. 
  3. Register the business: every new company is registered with the Danish Business Authority and it receives a Central Company Register Number (CVR).
  4. Register with the tax authorities: the company must register separately for VAT purposes; one of our Danish company formation agents can assist.
 
Once these steps are complete, investors can start hiring employees and apply for the needed permits and licenses.
 
Foreign investments have been growing steadily in Denmark, as highlighted by the following statistics:
 
  • - the foreign direct investments value in 2017 was 735.40 DKK billion;
  • - in 2016, the value was 689.5 DKK billion;
  • - in 2015, the foreign direct investments value was 632.8 DKK billion.
 
Entrepreneurs who wish to start a business for selling food and beverages in the country can contact our team of agents who specialize in company registration in Denmark.

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