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As a leader in wind power, Denmark offers lucrative opportunities in renewable energy, besides information technology and pharmaceutical space

No country other than Denmark could have been a more natural choice for wind turbine maker Suzlon.

It set up its international business headquarters at Aarhus, the country's second largest city, four years ago. Denmark today is a powerhouse of wind energy with over 5,000 turbines dotting the landscape to provide for around 20 percent of the country's energy needs.

Suzlon, which now has 100 people working in its Denmark office, is not the only Indian firm to have identified huge opportunities in the Scandinavian nation. Tata Consultancy Services has an office there that covers Denmark and Iceland. Satyam Computers and ITC Infotech have their Nordic headquarters in Copenhagen. In the pharmaceutical space, Indian firm Hikal holds a majority stake in Danish firm Marsing. This has helped Hikal to reach out to the lucrative European market.

Trade is a two-way street and Denmark too is taking keen interest in India. Infrastructure, building and construction, metal and machinery and ICT are among the sectors that are seeing interest from Danish companies. Main Danish exports to India include chemicals and minerals, machinery, medical products and other means of transportation. Denmark imports garments and apparels, iron, steel and metal products, oil related products and vehicles, among other things.

Why Denmark?
Even though a small market in itself, Denmark is an excellent gateway to Northern Europe and the Baltic states. From here one can cover markets in Sweden, Norway, Finland and Germany. The country’s knowledge economy makes it an excellent hub for research and development. Clean technologies and biotech are some of the major thrust areas.

Denmark’s economy is one of the strongest in Europe. The recession has led the government to announce stimulus packages for financial sector. Denmark’s well-educated labor force is a big asset for Indian businesses. The country has 12 international schools offer course in English, German, French and Japanese educational systems. Its eleven universities and colleges offer degree-level education in English language. Around 96% of young people attain secondary education while 35% complete higher education. A variety of study programs are offered and all institutions have intensive international cooperation and welcome international students. It has reasonably flexible labor laws, which makes it easier for companies to hire and lay off employees.

Henrik Brandt Jensen Regional Director, Invest in Denmark Agency Given the global economic turmoil, how do you think is Denmark reassuring investors? At the start of the global recession, Denmark was one of the strongest economies in Europe. We had witnessed very strong growth over a number of years. Our unemployment was at a record low, below 1.5 percent. So we were in a very strong position when recession broke out, and we haven’t been hurt as hard as many other countries. We have been able to react very fast. We have launched a number of initiatives countrywide. Being a small country, it is faster to react, develop new policies. Also, our government has implemented a number of stimulus packages, the two biggest are focused on financial and banking sector. Yes, we are feeling the global recession like everyone else, but the extent of it is lesser compared to other European countries. What is the approach of Asian businesses towards investing in Denmark? I have been speaking to a lot of investors in China and India over the last couple of weeks. Their reactions have been very positive. People in India are seeing it as something of an advantage because European companies now have to find cheaper ways of producing, etc., and then they would look to India for outsourcing to a greater degree than what they have so far. Also, many companies now see that access to European technology and companies is much cheaper now than it used to be. We are expecting quite a few acquisitions from Asian companies. If you look at the Asian region, which country do you think is more active in terms of investments in Denmark? So far, if we talk of Southeast Asia, it has mainly been India, dominated by the ICT sector. We are now seeing more Chinese companies coming up. That does not mean fewer Indian companies. You being based in Shanghai. Is it an indication that you are focusing on Chinese investors? We have decided to have our regional headquarters in Shanghai. At that time it was to put more resources in China, where we did not have much. As of now we are six people operating in China and Hong Kong. Renewable energy, life sciences and ICT seem to be major areas when it comes to Indian entrepreneurs. Are there any special incentives aimed at investors putting money into these areas? Overall, our government is very open to foreign direct investments. We have been supporting the outsourcing of Danish jobs for a number of years, trying to create a knowledge society. For that reason, the government has over many years implemented a favorable society for investors as a whole. The environment is very favorable for anyone to do business. As such, we don’t give direct incentives to foreign investors setting up businesses in Denmark. However, there are a number of opportunities for research and development driven set-ups to get access to funding from the Danish government. In renewable energy and life sciences, there are a number of such opportunities. Does the focus of Chinese investors differ from those from India when it comes to investing in Denmark? We are very focused in our approach because we are a small country. We are only proactively approaching companies where Denmark has proved its stronghold. Those areas fit in well with India’s stronghold. So we focus on life sciences, ICT and renewable energy. We don’t go out and approach countries in other sectors. From our point of view, China doesn’t differ much from India because we only contact companies in these areas. However, I can of course see that China is strong in other areas, but we don’t work in those. We look at investments with two angles – the number and the kind of jobs being created, and the kind of know-how and technology that foreign companies are bringing. How difficult is it to hire and fire the Danish workforce? One of the things that would attract foreign companies into Denmark is its labor laws. The Danish labor market policy is the most flexible in Europe. One of the reasons why American companies choose Denmark is because we have a very similar labor market policy. It can be very easy to hire and fire people in Denmark. How easy or difficult is it to start or close a business in Denmark? It is quite easy to start a business in Denmark. The capital requirements vary from company to company, but we generally allow Indian concerns to set up a limited company, for which the minimum capital requirement would be equivalent to US$ 20,000. The registration is free of cost.

The government treats foreign investors at par with domestic companies; thus, there are no special incentives for foreign companies. “The Danish government believes that it is important to provide a long-term, favorable business environment for foreign investors, and spends considerable time and resources ensuring this. This presents a long-term competitive advantage for any company that chooses to locate to Denmark. The focus is on ensuring that Denmark remains competitive in terms of business framework and resources,” says Shanker Subramaniam, Investment Manager, Invest in Denmark Agency.

Among other things that are palatable to foreign investors wanting to set up business in Denmark are quick, informal and cost-efficient establishment procedures; online incorporation of new companies within a few hours; no resident requirements for members of the Executive Board (CEO) and Supervisory Board; shareholders’ and board meetings can be held electronically; dividends can be distributed on an interim basis; no notarial deeds; and Danish company law that is in conformity with current European Union legislation. According to Invest in Denmark Agency, manufacturing may be carried out in various ways. “A foreign company may establish separate production facilities, either by building, acquiring or leasing such facilities, or having products manufactured by establishing contacts to existing producers of similar products in Denmark,” it says. Establishing production facilities in Denmark is most often done by establishing a Danish company (A/S or ApS) and letting the company acquire or lease such facilities. In the services sector a distribution center, a regional headquarter, or a shared service center can be established.

Denmark also offers superb research and development facilities. “R&D funding is available from the government for knowledge intensive projects involving Danish research institutions and foreign investors,” says Subramanian, and adds that current themes that are attracting a lot of funding is Clean Technologies and Biotech.

Doing Business 2009
The World Bank’s Doing Business Report 2009 ranks Denmark at 5th place on the overall ease of doing business. According to the report, Denmark improved its position on two parameters – getting credit and paying taxes. It rank remained unchanged on the following parameters – starting a business, dealing in construction permits, employing workers, enforcing contracts and closing a business. The country, however, slipped on some – registering property, protecting investors, and trading across borders.

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written by danushka, May 18, 2009

Jana Pradeepa Organization Sithawaka RajaSinghe mawatha,
Walawwata,Nattandiya
Sri Lanka

Dear Sir / Madam

We are a registered N.G.O. of Sri Lanka for a period of 04 years and presently being engaged in the activities mentioned below.
We wish to expand the activities mentioned in the following web site and in addition to that, intend to start new projects which are categorized as "Objectives".
We wish to find fund providers from foreign countries such as yours to improve the services that we provide to our needy people for the improvement of their living standards.

Please help us
Sri Lanka refugees

Registration
Certificate of Registration of Voluntary Social Services/ Non Governmental Organization
under Voluntary Social Services Organization (Registration & Supervision) Act, No. 31 of
1980 as amended by Act,No.8 of 1998.
Sri lanka
Voluntary Social Services Organization at this Secretariat under Registration No L - 132413

Postal address: Web : www.janapradeepa.net
Jana Pradeepa Organization Email : info@janapradeepa.net
Sithawaka Rjasinghe Mawatha Telephone : +94 - 32 5677658
Walawwatta +94 - 77 3042408
Nattandiya Fax: : +94 - 11 2838211
Sri Lanka
Thank you,
Yours Truly
President
Danushka Damith

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