Country Analysis and new business proposal to set up a business in Denmark based on the likes and did likes of their citizens.

1. DENMARK BUSINESS PLAN
BICYCLE MANUFACTURER
GLOBAL BUSINESS ENVIRONMENT
Submitted to:
Dr. J. Shettigar
Dr. Monika Jain
Submitted by: WILSON V SHAJI
20DM249

2. CONTENTS
S.no TOPIC PAGE
1 Introduction 4
2 Bicycle Culture Of Denmark 5
3 Bicycle Industry 6
4 Business Proposal 7
5 Swot Analysis 8
6 Setting Up A Company In Denmark 8
7 Conclusion 8
8 References 9

3. INTRODUCTION
Denmark is a beautiful country in northern Europe. Denmark’s strong social welfare
network is popular across the whole world, the country is a good place for doing
business.
The country is known as home to world-leading companies in various industries, with
a strong focus on renewable energy. Greater than 40 years of ambitious energy
policies helped put the country in the foreground of “cleantech”, and the country aims
to be completely independent of fossil fuels by 2050.
The economy of the country is heavily dependent on exports. There are various
small and medium scale companies situated in Denmark with world-class firms in
pharmaceuticals, processed foods, and maritime shipping. Denmark is known for
being ranked amongst the world’s top countries for its production of various range of
products and services.
Businesses investing in Denmark profit not only from the attractive macroeconomic
climate, but also through competitive conditions in relation to labour costs and
taxation. In Denmark the Investors are given lots of important tax advantages,
companies also benefit via favourable rules on depreciation
Denmark is also a very liberal and modern nation, It is a place where those indulging
in business are treated equally. A prosperous nation for business and it is one of the
least corrupt nation in the world, ranked very highly on World Bank’s scale for ease
of doing business and the 2018 Index of Economic Freedom, and one of the most
productive economies in the world, despite also having some of the highest tax
rates.
Denmark has highly educated workforce, flexible labour market regulations and low
employer social security contributions which makes Denmark an attractive base for
exploring business opportunities in Europe or the Nordic region. Denmark is one of
the best performing economies in the EU boasting low inflation, strong growth and
an unemployment rate of just 4.8%.

4. BICYCLE CULTURE OF DENMARK
In Denmark, bicycling is one of the primary forms of transportation. Sunshine, rain,
hail, snow - you will see bicyclists on their way to work, shop or social event.
Bicycles are used for pleasure, commuting, transport of goods, and family travel, and
extensive networks of bike lanes and bike highways make it easy. The Danes ride
many different types of bike, from racing cycles to the large box-like cargo bikes
used to transport goods and often children. Danish cycling culture is as old as the
bicycle itself. Bikes were first introduced to the country in the 1880s, and during the
1920s and 1930s, the bicycle became a widespread symbol of equality and freedom.
People of all social classes began biking side by side - in the cities on their way to
work, and in the countryside on their days off.
In the early 1970s, however, the Mideast oil crisis put an end to that development.
‘Car Free Sundays’ were introduced in Copenhagen, and there were protests
demanding that all of Copenhagen became car-free. Over time, concerns about air
pollution, climate change, and the need for desk-bound people to get enough
exercise, have helped bicycles make a big comeback. Denmark's heavy taxes on
petrol and automobiles are a factor too. From the 1970s to the 1980s, several
conflicts arose between bicycle and car interests in Danish cities. One example was
the wave of popular protests which followed in the wake of a proposal from the
Copenhagen authorities to establish a motorway across the lakes which separate the
inner city of olden times from the more recent suburban districts. There was an
enormous outcry because, then as now, the lakes were some of the city’s loveliest
open spaces.
Gradually it became clear to most people that the solution to the problems had to be
city planning that gave space to cars, bicycles, pedestrians and public transport. Out
of this realisation grew the Danish model with its extended network of cycle lanes
along the roads.
In Denmark, as in other countries, there is a desire to improve public health and
combat climate change. In Copenhagen and several other Danish cities it has led to
an intensified effort to maintain and strengthen cycling culture.

5. Another alternative for families with children is the cargo bike - a sort of oversize
tricycle with a large wooden box on the front invented in the 1980s at the Freetown
of Christiania in Copenhagen. It's estimated that a quarter of all Copenhagen families
with two or more children own one of these cargo bikes for transporting kids,
groceries, and other necessities. Danish cargo bikes have has also won design
awards and become an export success.
In order to serve the large number of cyclists, contemporary urban planners in
Denmark are working to develop the physical cycling infrastructure all over the
country. Wide cycle paths and cycle bridges increase safety, and ‘cycle
superhighways’ are being expanded in the greater urban areas to increase access
and reach.
The Cycling Embassy of Denmark (CED) is a comprehensive network of cycling professionals from
private companies, local authorities, and non-governmental organizations working together since
2009 to promote cycling and communicate cycling solutions and know-how. The members of CED
represents the latest knowledge of all areas related to cycling be it planning bicycle and people-
friendly cities, creating synergy between cycling and public transport, building safe infrastructure for
cyclists like cycle tracks and bicycle bridges, developing successful campaigns and municipal policies

6. that motivate people of all age groups to cycle, designing urban furniture like bicycle pumps, bike
counters, and bicycle parking facilities, and much more.
Denmark has a long tradition for cycling and alternative transportation modes in the cities. In order
to meet the challenges of an increased urbanisation, sustainable transportation must be an
integrated part of city planning. A flexible and smart approach to commuting and transportation of
goods is necessary to meet the ambitions of Denmark becoming independent of fossil fuels by 2050.

7. BICYCLE INDUSTRY
The Danish traditional dealers and wholesalers are facing increased competition as well as price
erosion. Also, the market for traditional types of bicycles is stagnant. Despite these trends there’s
a relatively high demand for more individualized bicycles. This is stimulating new initiatives for
small-scaled production focused on special bicycles like cargo bikes, folding bikes, wooden bikes
and bikes for disabled people.
Denmark: Market Share by Category
• Classic (Dutch) Bicycle: 22%
• City Bikes: 31%
• MTB: 20 %
• Racing Bikes: 7 %
• Trekking Bikes: 2.5%
• Kid Bikes: 8 %
• E-bikes: 9 %
• Other: 0.5 %
This market development might be the result of the growing popularity of external
gear systems, although the internal gear hub is still the most popular gear system for
the total market. Besides MTB, the road bike also enjoys a growing popularity among
consumers although the volumes were not so big as with MTB. The road race
market expanded from 63,766 in 2016 to 85,475 in 2019.
A positive aspect of Denmark’s cycling culture is the rising trend for bicycles made
on demand. People not only want to ride a bike to get from A to B, they want to
express themselves. As a cyclist they want to show themselves off in the streets.
This results in a rising market for individual bikes with all types of distinctive
accessories and colours.
In 2009 the Danish bicycle market shifted an estimated 520, 489 units, down slightly
from a boom in 2008 of 543,533 and 2007 of 554,300. Overall though, the unit total
is far up on the 452k and 484k in 2002 and 2003 respectively, proving bike sales are
generally enjoying a positive trend.
City bikes (with internal gear hubs) have reigned supreme as the biggest bike sector
in Denmark for the past three years, making up 35 per cent of sales in the territory.
Closely following is the classic Dutch bike style of bike, taking a significant 25 per
cent of the market.

8. BUSINESS PROPOSAL
Setting up a manufacturing hub for producing low-cost high-quality bicycles that are
already proven their mettle in India and now are ready for global launches by slight
modifications that suits the country and its people.
The Denmark is an excellent market for selling bicycles as majority of transportation
is done through bicycles and high leisure travel also takes place with prominent
growth in the market with Bicycle tourism on the rise in Europe and people becoming
environmentally conscious and be a part of green techs.
Monthly retail sales index of bicycles and mopeds in Denmark from October
2018 to October 2020
Major competitors in Denmark bicycle market
* Giant Bicycles
* Hero Cycles
* TI Cycles
* Trek
* Shanghai Phonex
* Atlas

9. SWOT ANALYSIS
Strength
• High Income group
• Environmentally friendliness
• Cycling culture
• Language skills
• Competitive Machinery
• Quality- Price ratio
Weakness
• Remote location
• Lack of resources
• High production and labour cost
• Lack of exporting experience
Opportunities
• High purchasing power
• High consumerism
• Increasing environmental awareness
• Green & modern lifestyle
• Demand for quality
• Good cycling population
• Cycling tourism
Threats
• Economic downturn
• Change in buying behaviour
• Acceptance of product
• High completion
• Partner and distribution channels

10. SETTING UP A COMPANY IN DENMARK
Denmark does not impose any specific requirements on foreigners wishing to
establish a business presence in the country. There are no residency requirements
for management, including members of the Executive Board (CEO), Board of
Directors or Supervisory Board. Separate cities and regions have different rules,
costs and availability. There are three types of business forms available to foreign
companies in Denmark. Corporation (A/S or ApS), Branch Office, Representative
Office.
In Denmark, there are two types of corporations that can be set up:
• Aktieselskab (A/S) [equivalent to a public limited liability company]
• Anpartsselskab (ApS) [equivalent to a private limited liability company]
o Incorporation of companies can be done online and are often ready for
business within a few hours
o No residency requirements for management, including members of the
Executive Board (CEO), Board of Directors or Supervisory Board
o Shareholder’s and board meetings can be held electronically
o No notarial deeds
o Flexible language requirements – registration of corporate documents of
limited liability companies (A/S and ApS) in Swedish, Norwegian or Danish.
Note that some documents may be registered in English
o Dividends can be distributed on an interim basis
o Danish company law is in conformity with current EU legislation
1. Aktieselskab (A/S)
A/S are usually chosen for middle-sized and large companies. Only A/S companies
may be listed on the Copenhagen Stock Exchange.
A/S Investment Capital Requirements: Minimum of DKK 500,000.
It is optional if the investor chooses not to fully pay up the registered share capital.
However, the paid-up capital must be at least 25% of the registered share capital.
The investors’ liability will then be restricted to the value of the shares subscribed.
Management
A/S companies are required to have a two-tier supervisory system: a Board of
Directors (minimum 3 persons) and an Executive Board (minimum 1 person, the
CEO). The BoD may be substituted with a Supervisory Board.
No residency requirements are imposed on any of the directors.
2. Anpartsselskab (ApS)
A/S are usually chosen for small and middle-sized companies. Typically used as
subsidiaries for multinational enterprises due to lower compliance requirements.
ApS Investment Capital Requirements: Minimum of DKK 50,000.

11. It is optional if the investor chooses not to fully pay up the registered share capital.
However, the paid-up capital must be at least 25% of the registered share capital.
The investors’ liability will then be restricted to the value of the shares subscribed.
Only a single shareholder is required and no restrictions apply on the nationality of
the shareholder.
Management
ApS companies can choose to have a one or two-tier supervisory system. An
Executive Board (minimum 1 person, the CEO) must be in place, however a Board
of Directors or Supervisory Board may also be appointed.
No residency requirements are imposed on any of the directors.
Accounting requirements: Both A/S and ApS are required to submit annual financial
statements.
Things to do upon Incorporation
Preliminary procedure. Before proceeding with incorporation, it is required that
foreigners first verify the uniqueness of their name at the Danish Registrar by
providing three unique names. The founders also have to provide the articles of
association. The articles of association must contain certain information such as the
company’s name, the location of the registered office, the objective of the company,
the share capital and also the names and addresses of the managing members.
Note that documents for incorporation must be notarised before use.
1. Obtaining a NemID signature
A particularity of the company registration in Denmark is that each business must
receive a digital signature known as NemID. A NemID signature allows business
employees to register themselves electronically. A company may request up to 3
NemID signatures free of charge for its employees, and but any additional NemID
signatures will be subject to a charge of DKK 79 per additional employee.
While a comprehensive list of documents is not available online, typical documents
that are required for registration include copies of the shareholders and directors’
passports, utility bills to prove the address as well as a bank reference letter.
Agency: Danish Agency for Digitisation National IT and Telecom Agency
Time: Less than one day
Cost: Free
2. Registration of the company
Agency: Danish Business Authority (DBA) (formerly the Danish Commerce and
Companies Agency)
There are three ways in which registration may be done:

12. a. Online registration through the DBA’s WebReg system – only certain service
providers such as law firms with a NemID may undertake the online registration
b. Paper registration
c. Acquisition of a shelf company
However, given the speed and efficiency of the online registration process, this
option remains as the most popular choice.
Time: Online registration usually completed within a day, however paper registration
usually takes 2-3 weeks.
Cost: DKK 670 (online registration) or DKK 2,150 (paper registration)
3. Deposit start-up capital in a bank
After the minimum start-up capital is deposited, the bank will issue a certificate of
deposit.
4. Registration of employees for workmen’s insurance with
Agency: Private insurance company
Time: 1 day
Cost: No charge
CONCLUSION
Denmark is a good business environment and overall a low-risk target country. Also,
as considering company’s industry, many positive attributes were found. The Danish
culture signifies heavy consumerism, green and modern lifestyle. Also, an increasing
trend in Denmark is consumers placing more and more demands on products being
environmentally friendly. Based on these findings, Denmark would be an attractive
target market for the case company to consider. Efficient marketing seems
unquestionably to be one important prerequisite for success in the Danish market
which we will have to do to succeed in the highly competitive market.

13. REFERENCE
o https://investindk.com/our-services/how-to-set-up-a-business-in-denmark
o https://denmark.dk/people-and-culture/biking
o https://cyclingsolutions.info/
o https://cyclingsolutions.info/wp-content/uploads//2020/12/Copenhagens-Bicycle-Strategy-
2011-2025.pdf
o https://www.bike-eu.com/market/nieuws/2016/12/danish-e-bikes-continue-to-grow-in-
declining-market-10128349