How to Collect a Debt from a Danish Company

When the debtor is Danish

Many foreign businesses sell to Danish customers. When a Danish customer does not pay, it is as a rule Danish rules that govern the recovery itself in Denmark: how reminders must be sent, which fees may be charged, and which courts and authorities can help. Which country's law governs the contract itself depends on what you agreed.

Step 1: Check the company

Look the customer up in the Danish CVR register (Denmark's central business register) on virk.dk. Free of charge, you can see the company's name, address, legal form, management and status, for example whether it is in bankruptcy, restructuring or compulsory dissolution. Read more in our guide on how to check a Danish company in the CVR register.

If the company has gone bankrupt, you cannot recover the claim directly, but must lodge it with the trustee.

Step 2: Reminders and a debt collection notice under Danish rules

A reminder fee of at most DKK 100 per reminder, no more than 3 reminders at least 10 days apart (section 9 b of the Danish Interest Act)
Fixed compensation of DKK 310 for late payment between businesses (section 9 a)
Late-payment interest: the reference rate plus 8 percentage points per year (section 5), if Danish law governs the contract
A debt collection notice with a deadline of at least 10 days before the case is sent to debt collection (section 10 of the Danish Debt Collection Act)

Write in Danish or English: a letter in a language the customer does not understand gives the customer an argument that the claim was unclear.

Expert tip: Use a Danish partner

Debt collection in Denmark requires authorisation from the Danish National Police (Rigspolitiet). A Danish debt collection agency or Danish lawyer knows the rules, the language and the courts, and can often recover the claim faster and more cheaply than if you have to navigate the system from abroad yourself.

Step 3: If the customer does not pay

Payment order

If the claim is undisputed and no more than DKK 100,000 (excluding interest and costs), a payment order (betalingspåkrav) can be filed at the bailiff's court via minretssag.dk. The court fee is DKK 750. If the debtor does not object within 14 days of service, the payment order takes effect as a judgment. A Danish partner can typically file it for you.

A lawsuit in Denmark

If the claim is disputed or larger, the case can be brought before a Danish court. Claims up to DKK 50,000 are as a rule handled as small claims.

A judgment from your own country

If you already have a judgment from a court in another EU country, it can as a rule be recognised and enforced in Denmark under the Brussels I rules, which Denmark is bound by through a parallel agreement with the EU. Judgments from Norway, Iceland and Switzerland are covered by the Lugano Convention. For judgments from other countries, whether they can be enforced in Denmark must be checked case by case.

Note that the EU procedures for the European order for payment and small claims do not apply to Denmark. Read more about the European order for payment and Denmark.

Expert tip: Watch the limitation period

Claims under Danish law typically become time-barred after 3 years, and reminders do not interrupt the limitation period. So do not wait too long before taking legal steps.

If the customer disputes the claim

If the customer objects, for example about defects, the dispute must be resolved by agreement, a lawsuit or arbitration before enforcement can take place. Read about what to do when the customer disputes the debt.

Prevent it next time

Credit check Danish customers via the CVR register and published annual reports
Agree governing law and jurisdiction in your terms of sale
Consider prepayment, a guarantee or credit insurance on large orders

Getting started

Through InkassoHurtig you can get no-obligation quotes from police-authorised Danish debt collection agencies and lawyers who can recover your claim in Denmark. This content is general information and not legal advice.