To get a bank to open a business bank account in Denmark is not easy. It is much harder to achieve it than many other countries, especially other countries from Europe. And it is especially hard to open a business bank account in Denmark if you are a foreigner with no Danish passport or live outside of Denmark.
But why is it so hard to open a business bank account in Denmark? Why is it not as easy as in other countries?
There are two main reasons why and we will get into those in this article. Furthermore, I will give you an opportunity to get a business bank account in Denmark in the end of the article. But first let us find out why it is important that you get Danish bank account numbers if you are going to open a business in Denmark and deal with Danish businesses.
Relatert: Doing business in Denmark
The importance of getting Danish bank account numbers
The Danish bank system has, as many countries have, its own bank account number and internal wire transfer system. A bank account can be identified by two sets of numbers: A registration number and account number. A registration number tells the system which bank the account number owner has and the account number is the account number in the bank. If we compare it to the SWIFT system, the IBAN number is the account number and the SWIFT or BIC number is the registration number.
The Danish banks prefer that Danish SME’s which are their clients use the Danish system and not the international SWIFT system. The reason lies in the same reasons why it is hard for you to get a business bank account in Denmark. Which you can read more about below.
You can see that it is important for you if you are going to deal with Danish businesses that you also need Danish bank account numbers. Otherwise, they will not be able to make wire transfers to your business if they owe you money. You need to be able to receive money from them if you do not have those.
Not only that the Danish businesses cannot transfer money to you, some of you suppliers from many industries will not be able to transfer to your business either. Take payment solution providers for instance. Many of the Danish providers do not make international wire transfers. They want to use the Danish bank system.
So you can see now that it is important that you acquire Danish bank account numbers so your business is able to work within the Danish bank system.
The reasons why it is hard to get a business bank account in Denmark
A couple of years ago it was really simple to get a business bank account in Denmark. For Danish citizens and others as well. But now it is harder thank ever.
As mentioned above there are two main reasons why it is hard to get a business bank account in Denmark. Let us look at them now.
The Danish Money Laundry Law
The Danish Money Laundry Law (Hvidvaskloven) got a substantial update a couple of years ago after the Danske Bank scandal in the late 2010s. The change in the law affected many SME’s in Denmark, especially new companies that want to get started with their businesses.
The reason is that the change had a substantial requirement to the Danish banks, accountants and lawyers that are now forced to keep an extra eye on their clients. And hence are forced to use more manpower and money on each client.
Much of that responsibility is put on the Danish banks. This meant that the banks got a lot picky about who and which companies they let in in their systems. They started to demand a lot of documents like a business plan, budgets and lots of personal documents to even consider a new client.
It is, as with anything else, all about money. They do not want to lose money on any clients, as all companies normally operate as such. They only want to take new clients in that they can trust will become so successful that they can make money on them in the long run. Taking a new client in has become a long term investment for the Danish banks.
This is the main reason why it is hard to get a business bank account in Denmark.
Covid had a lot of impact on the World economy. It had also a huge impact on Denmark and on Danish companies. It showed how fragile many industries are.
As mentioned above it is a long term investment for the Danish banks to take in a new client. And potential clients from fragile industries are not preferable for them. So it has become harder for companies that operate in industries that were hit hard by the Covid crisis to get a business bank account in Denmark. The risk of taking them in and see them as a long investment was not worth the effort for the banks.
And many industries were suffered under the crisis.
For that reason Covid is one of the two main reasons why it is hard to get a business bank account in Denmark.
Then why is it harder for foreigners to get a business bank account in Denmark?
There are two kinds of foreigners: Those who live in Denmark and those who do not.
Both kinds of foreigners can open a company in Danmark without a problem. Registering a company is not the hard part. It is of course getting a bank to open a business bank account for you.
It is harder for foreigners to get a business bank account in Denmark than Danish citizens. That is a fact. And there are two kinds of reasons, one for each kind of foreigners in Denmark.
Foreigners living in Denmark
Foreigners who live and work in Denmark do not always stay in Denmark. They tend to move back to their own countries after a couple of years. Sometimes without a trace.
The Danish banks do not like that outlook. If you a an investment for them and there is a big chance that you will disappear within a couple of years then you are a bad investment.
Even worse, if you disappear without a trace and without telling the bank about it you leave a huge task for the bank to try and find you. It will take many man hours and a lot of money to find you which means that you would be an even worse investment.
This is why it is hard for even those who have lived in Denmark for many years to get a business bank account in Denmark.
Foreigners from outside of Denmark
The reason why it is hard for you to get a business bank account in Denmark is quite different if you live abroad away from Denmark.
The main reason is that the banks will have a hard time to comply to the Money Laundry Law and keep a good eye on you. And it will be hard for the banks to comply to the task of KYC. And of course you are a high chance of being a disappear-without-a-trace client since you have no ties to Denmark except for your company.
The Danish banks will have a hard time trusting and believing you. Except if you have a large company, of course.
Trust has become a really important factor in the Danish bank industry. They have to trust that you are a good investment. They have to trust that you do everything by the book. And they have to trust that you will not disappear without a trace from them.
Do you need help getting Danish bank account number?
Startup Consulting can help you get a bank account with Danish bank account numbers. It is not a Danish bank but the bank has gotten a Danish bank as a partner and is offering Danish bank account numbers to its clients. No matter where they come from and where they live.
This will mean that you can go around getting a business bank account in Denmark and get a business bank account with Danish bank account numbers in stead. This will give you easy access to the Danish bank system without having to live up to the harsh demands and requirements from the Danish banks.
Interested? Contact us today and get started with your process immediately.