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Set Up a Danish Business for Selling Coffee, Tea and Spices

Updated on Wednesday 24th April 2019

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Set-Up-a-Danish-Business-for-Selling-Coffee-Tea-and-Spices.jpgCoffee and tea are the two main categories of hot drinks preferred in Denmark, with coffee being the undisputed first place occupant. In light of a growing health trend, consumers seemingly prefer more organic and natural options and hot drinks are one of the categories where organic products are sought after. An emphasis on superior product quality is also observable among consumers, with brands actively engaging in the process of highlighting a product’s premium qualities. 
 
Investors who set up a Danish business for selling coffee, tea, and spices, can pay attention to the market trends, particularities, and offer products that comply with the general health and wellness trends but also with the consumption of quality sources coffee.
 
Once they select their target client base and decide on the types of products that they will sell, entrepreneurs who open a company in Denmark will need to follow the basic steps for opening a private limited liability company or another chosen type of legal entity.
 

Market opportunities for coffee, tea and spices shops in Denmark

 
Coffee and tea are both popular beverages in Denmark, with no clear tendency to prefer only one of these products. Coffee consumption can be higher among certain age groups, however, a trend that is observable throughout the population is an inclination towards health, which in turn can have an influence on the sales of green tea and herb tea.
 
Investors who start a business that sells these types of products can focus on:
 
  • Specialty coffee: roasted or green coffee, organically sourced and from certified producers.
  • Tea varieties: green tea, rooibos, and black tea as well as Scandinavian herbs popular for their properties.
  • Spices: Indian, Chinese, Mexican, Vietnamese or Thai spices, can be attractive to locals and expats in Scandinavia. 
  • Others: some shops can also offer accessories for making tea and coffee and services such as a local coffee roaster. 
 
With the per capita coffee consumption in Denmark being a relatively large one, the market is expected to continue to grow. Likewise, the health trend allows for favorable market growth for teas, green teas, and herbal ones.
 
When opening this type of business, sourcing quality brands can be important for entrepreneurs and the success of the business.
 

How to open a company in Denmark

 
The country is known for its easiness of doing business and investors, foreign and locals alike can easily register a limited liability company. There are no mandatory requirements for the company owners and directors to be Danish residents and the general incorporation process is largely simplified. The Danish corporate law is a modern one, in compliance with current EU regulations. 
 
The short guide below contains the major steps needed to open a business for selling coffee, tea, and spices and for any type of business in general. Company registration in Denmark starts with choosing a suitable business form, followed by a simple process of actually registering the new legal entity with the Danish trade register and the tax authorities. The main steps for company formation are the following:
 
  1. Choose a business form: there are a number of types of companies, however, the private limited liability company, the ApS, is the commonly used one.
  2. Come up with a company name: this should be a unique one and investors can check if the name is already in use.
  3. Deposit the capital: the minimum capital for the new Danish company needs to be deposited into a bank account.
  4. Provide the documents: the identification documents and personal information of the company founders
  5. Draw up the company documents: the Articles of Association are the constitutive documents for a company.
  6. Register the business: every company in Denmark is registered with the Danish Business Authority.
  7. Register with the tax authorities: after registration, the Business Authority sends the company information to the Customs and Tax Administration. 
 
This is only a general description of the steps needed for company formation in Denmark. Investors who open a business that sells special types of products will also need to obtain the needed permits and licenses, for the sale of the said goods and for their import, as needed. This is an issue that needs to be addressed from the start; this is why we recommend that investors reach out to one of our agents for more details.
 
Contact us for complete information about how to open a company in Denmark, how to start a business for selling coffee, tea, and spices as well as any other type of business.
 

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