Activities covered by the Investment Screening Act

Danish Business Authority

Particularly sensitive sectors and activities

The Investment Screening Act designates a number of particularly sensitive sectors and activities in relation to national security or public order.

Foreign investors must apply for authorisation if their investment or special financial ageement falls within the particularly sensitive sectors and activities, and fulfils more detailed conditions. If an investment or agreement does not relate to one of the particularly sensitive sectors and activities, you should be aware of whether it must be notified instead, under the notification scheme.

Defense Sector

Companies or entities in the defence sector include the following:

  • Companies and entities developing or producing weapons, ammunition or other technology for military use on the EU Common Military List.

  • Companies and entities not covered by no. 1 and that provide services to Danish Defence that are of particular importance to the operations of Danish Defence.

The Investment Screening Act does not apply to foreign direct investments covered by the War Material Act. In this instance, you will have to apply for authorisation for the investment from the Ministry of Justice. The exception only applies to investments. The rules of the Investment Screening Act on special financial agreements thus also apply to companies that are covered by the War Material Act.

IT security functions

Companies and entities in the field of IT security functions or the processing of classified information include the following:

  • Companies and entities that either themselves or as a subcontractor develop or produce IT products and components used to protect classified systems or information, or

  • Companies providing products or services for the processing of classified information.

Other critical technology

Companies and entities within the category of 'other critical technology' include companies and entities that develop or manufacture the following technologies:

1. Artificial intelligence and machine learning for autonomous vessels, human imitation, analysis of positioning data and biometric identification. 2. Advanced industrial robot technology, including for production robots or for use in the healthcare sector, as well as advanced drone technology. 3. Semiconductors for use in integrated circuits, including technologies that support their production. 4. Technologies for the protection of cyber and information security with regard to accessibility, integrity or confidentiality in IT systems, as well as defence against IT attacks. 5. Space technology for launching satellites, personnel and communication technology that supports the same. 6. Technologies for industrial energy storage, energy conversion and energy transport. 7. Quantum technology in connection with quantum computers, quantum sensors, quantum cryptography and quantum communication. 8. Nuclear technology, excluding products for use in the healthcare sector. 9. Nanotechnology, including advanced graphene materials. 10. Biotechnology in synthetic biology. 11. 3D printing for the manufacture of components for industrial use.

For the technologies under 1-11, general exceptions apply, which means that companies that develop or manufacture technologies are not covered by the particularly sensitive sectors and activities. The exceptions apply if the technology is developed or manufactured for the purpose of incorporation into consumer products or relating to actual consumer products and such products are widely available. For example: toys and consumer products for use in the home.

'Other technology' is defined as critical technology other than the technology covered by the particularly sensitive sectors and activities and which relates to 1) the defence sector, 2) IT security features or classified information processing, and 3) dual-use products. What is involved is, for example, newly developed technology critical in relation to national security or public order, and which is not currently covered by the arms and dual-use export control regulations.

Critical infrastructure

Foreign investors must apply in advance to the Danish Business Authority if they intend to make a foreign direct investment or enter into a special financial agreement with a company or entity that belongs to critical infrastructure in Denmark, i.e. if that company or entity:

  • directly or indirectly owns critical infrastructure,

  • operates critical infrastructure under contract (outsourcing),

  • has regulatory responsibility for critical infrastructure or

  • develops or manufactures technology that constitutes critical infrastructure.

'Critical infrastructure' is defined as "infrastructure including facilities, systems, processes, networks, technologies, assets and services that are necessary to maintain or restore socially important functions".

Specific assessment of what can be considered critical infrastructure is determined on the basis of a division of society into socially important sectors, which further includes a number of underlying socially important functions. Critical infrastructure includes companies and entities needed to maintain or restore the following socially important functions in the following socially important sectors:

It is important to emphasise that the 11 critical sectors do not constitute a list of critical infrastructure, but that within the 11 sectors there is infrastructure that will be critical infrastructure covered by the authorisation requirement.

Updated 24.08.2023