Conducting and setting up a Business in Greenland

Conducting business
Conducting business in Greenland is regulated by different acts depending
on the type of company and the business sector. In the following the most basic advice is presented. For more in-depth information regarding setting up a business and conducting operations, it is recommended that legal advice is sought. For in-depth
information, please contact Deloitte at nuuk@deloitte.dk

Setting up a business
Greenland has interesting business opportunities for international enterprises – whether dealing in food products, minerals, oil, tourism or biotechnology. 

The opportunities are increasing all the time and taking part in this development could prove very beneficial to both the international and Greenlandic business communities.  Gaining easier access to Greenland’s resources and the Greenlandic market necessitates setting up a company in Greenland or at least establishing solid contacts with the Greenlandic business community.
The Greenlandic business community is also open for joint venture operations with foreign companies.

For more information regarding the investment potential in Greenland, please contact Greenland Venture at Greenland@venture.gl or Greenland Tourism & Business Council at info@inussuk.gl

Types of business enterprises
Business in Greenland may be operated under any of the following legal forms: Public limited company (aktieselskab or A/S), Branch office (filial), Private limited company (anpartsselskab or ApS), General partnership (interessentselskab or I/S), Limited partnership (kommanditselskab), Limited partnership company (kommanditaktieselskab), Co-operative society (andelsforening a.m.b.a.), Foundation (fond), Sole proprietorship (personligt drevet virksomhed).

There are acts regarding certain common types of companies. The Public Limited Companies Act and the Private Limited Companies Act are two central acts, but generally there is a high degree of freedom in the choice of the legal form under which business can be conducted in Greenland. For further information regarding the specific regulations regarding the specific company forms it is recommended that legal advice is sought.

Establishment procedure
A foreign investor who intends to set up a subsidiary in Greenland may either found a new company or purchase the shares in a shelf company.
Founding of a company

A memorandum of association must be prepared and signed by the founders.The memorandum of association must contain a draft of the articles of association.

The draft of the articles of association must include information about the name of the company, the location of the registered office, the objectives of the company, the share capital, the Supervisory Board, the general meeting, auditors and the company’s financial year.

The articles can be amended subsequently if desired, but the shareholders must authorize the amendments at a general meeting.

Furthermore, the memorandum of association must contain information about the names and addresses of the founders, the subscription price of the shares and the deadline for subscription and paying in subscribed capital.

The formal decision to found the company is made at a first general meeting of the shareholders. When the foundation has been adopted, the shareholders adopt the articles of association and elect the members of the Supervisory Board and the auditor.  The Supervisory Board is obliged to register the company with the Danish Commerce and Companies Agency within six months (two months in the case of an ApS) from the date on which the memorandum of association was signed.

A company in the process of incorporation, i.e. a company that has not yet been registered, is not considered to be an independent entity, i.e. the founders are personally liable for the activities of the company. The company comes into existence legally once it is registered. Upon registration, the company will take over all liabilities and obligations related to activities carried out from its foundation until registration.

Obtaining an operational company within the space of a week by using a shelf company can also easily be arranged.

Registration requirement
Public limited companies, private limited companies and branch offices of foreign corporations must register with the Danish Commerce and Companies Agency.

All companies established in Greenland must register with the GBR Greenland Business Register (Grønlands Erhvervsregister – GER). 

Find more information about the GBR at http://www.ger.gl/ or mail to ger@gh.gl

Residency requirements
In order to trade and conduct business within Greenland a trading licence must be obtained from the Home Rule government administration.

Greenland’s Trade Act (2001) states that persons who wish to obtain a trading licence must possess Danish citizenship or have a work permit for Greenland and be resident in Greenland, unless an international agreement valid for Greenland states otherwise or Greenland’s Home Rule grants a waiver. Citizens of Denmark and other Nordic countries do not need a work and residence permit.

Companies may obtain a trading licence if they are registered in Greenland and if the management resides in Greenland. Branches of foreign companies in Greenland may obtain a trading licence if an international agreement valid for Greenland states as such, or if Greenland’s Home Rule grants a trading licence.

The management of the branch in Greenland must separately fulfil the trading licence requirements applied to persons. In the case of public and private limited companies, half of the company’s actual management must reside in Greenland.

For further information, please go to / or contact Greenland Tourism & Business Council at info@inussuk.gl or the Department of Industry at ip@gh.gl