For foreign companies who are planning to post workers to Denmark to provide services, understanding and complying with local regulations is crucial to avoid unnecessary penalties. One key requirement is registration with the Register for Foreign Service Providers (RUT).

Foreign businesses providing services in Denmark are required by law to register in the RUT Register.

In this article we have therefore compiled an overview of the purpose of the RUT register, who is required to be registered in the RUT register, what needs to be registered, when the information needs to be registered, and the consequences of non-compliance.

1 What is the purpose of the RUT register?

The RUT register aims to supervise foreign companies and workers who perform services in Denmark. The purpose of the registration is to ensure that foreign companies are complying with the Danish legislation, including working environment, safety and tax.

2 Who is required to be registered in the RUT register?

The registration obligation applies to foreign companies providing services in Denmark. This obligation applies to companies from the EU/EEA and third countries if they will temporarily deliver services in Denmark. The registration obligation will apply in several situations, including:

• When foreign companies post workers to Denmark to perform temporary work.
• When self-employed persons shall provide temporary services in Denmark within the industries of building and construction work or installation and repair of machinery and equipment.
• When temp agencies or other companies post workers to Denmark to perform temporary work.

There are some exceptions to the registration obligation. These exceptions are designed to reduce administrative burdens for minor or short-term activities that do not necessitate regulatory oversight. However, it is important for foreign companies to verify their specific situation to determine if they qualify for an exemption as misinterpreting these rules can result in unintended non-compliance.

3 What needs to be registered in the RUT register?

Foreign companies must among others submit the following information to the RUT register in order to comply with the rules:

• Company name, company’s address and contact details.
• Company’s sector code, company’s registration number in the home country, and information about any VAT registration in the home country.
• Date of commencement and completion of the service.
• Place of delivery of the service.
• Information about the employees, including identification number, and social security conditions in the home country.
• Information about the Danish costumer in connection with the service.

The information shall be registered at virk.dk, and the form is available in Danish, English, German and Polish.

4 When must the information be registered?

The RUT registration must be submitted at the latest at the same time as the work in Denmark commences.

If there are changes to an already submitted registration, these changes must be reported in RUT no later than the next working day.

5 What are the consequences of non-compliance?

Failure to register in RUT, submit incorrect or incomplete information in RUT or exceeding the deadline for submitting the information, can be sanctioned with a fine.

The fine for breach of the RUT registration is typically DKK 10.000, however the fine may be increased to DKK 20.000 for violations of a more serious nature, for example in the case of repeated offenses.

Recommendation

To avoid the fines, we advise that foreign companies who are planning to work temporarily in Denmark shall assess whether there is an obligation to register in RUT. Furthermore, we advise our clients to complete the RUT registration in advance and to ensure accuracy of the information submitted. If you have further questions about the RUT registration, please contact us.

Your labor law team

Jana Behlendorf
Attorney-at-Law
jana.behlendorf@lead-roedl.dk
T. +45 23 24 60 22

Karina Helena Svensson
Attorney-at-Law
karina.svensson@lead-roedl.dk
T: +45 23 84 06 28

Navina Jegarubanathan
Assistant Attorney
navina.jegarubanathan@lead-roedl.dk
T. +45 60 52 43 04

Julie Støttrup Nielsen
Legal student
julie.nielsen@lead-roedl.dk
T: +45 20 67 67 21