Doing business in Denmark can be very interesting for Dutch entrepreneurs. Denmark focuses strongly on sustainable products in various sectors, such as energy, the building sector and even meat substitutes for a healthy and environmentally-conscious lifestyle.

Doing business in and with Denmark is extremely pleasant and people are very open to international business. Moreover, the Danes are extremely friendly and helpful.

However, make sure that you do business with a financially healthy company!

That is always important, of course, but for Denmark there is another aspect to it. The EU insolvency regulation applies to all EU countries – with the exception of Denmark.

What does that mean for the Dutch entrepreneur?

To give a recent example:

The public agreement procedure outside bankruptcy is a procedure that has been included in the Bankruptcy Act since 1 January 2021 and was introduced as part of the Private Arrangement Homologation Act (Whoa). This procedure offers companies with financial difficulties the opportunity to avoid bankruptcy by offering an agreement to their creditors and/or shareholders. If a sufficient number of creditors and shareholders agree to the arrangement, the court can declare it binding. This means that the agreement also applies to creditors and shareholders who have not agreed to it. This is very useful and can help the entrepreneur to get his affairs in order after all. In the other EU countries this prevents creditors from avoiding the effect of the agreement by asking a judge in another EU country to enforce their claim.

The decision of a Dutch judge to declare a settlement binding is therefore automatically recognised in other European Member States – but not in or for Denmark.

And that can be tricky.

If there is a bankruptcy in a business relationship with Denmark, this means that the International Private Law must be looked at – and in the case of the bankruptcy of a Danish company, the Danish bankruptcy law.

ACG International, together with its excellent partner office in Denmark, can help you with the legal support of your affairs in Denmark, both in the preparation and in the handling. 

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Do you have a question? Please feel free to contact us. You can email to
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