Denmark

Types of companies used for international business and investments:

Anpartsselskab (ApS) – a Closed Joint Stock Company

Kommanditselskab (K/s) – a Limited Liability Partnership

Permitted Types of Activity

Any activity permitted by law.

Mandatory Requirements

A company’s registered office must be in Denmark.

Does the law ensure that information about the real owner and bank operations is not disclosed? Information is unavailable to third parties and may be disclosed only upon a decision of a local court.

Conducting the meetings of shareholders/directors

The meetings of shareholders and directors may be conducted anywhere in the world.

Should accounting records be maintained?

Yes, they should be.

Should annual accounts be drawn up?

Yes, they should be.

Third party access to the information about shareholders and directors

In Denmark, the register of shareholders and directors is public.

Keeping of a company’s documents

A company’s documents may be kept anywhere.

Signed treaties for the avoidance of double taxation

Denmark signed treaties for the avoidance of double taxation with many countries.

Foreign exchange control

None.

The period of company incorporation from the moment the documents have been submitted

Approximately 5-6 weeks.

Anpartsselskab (ApS) – a Closed Joint Stock Company

Authorised Capital

The minimum authorised capital of a company is 50,000 Danish Krones (DKK, approx. EUR 7,000). It must be completely paid up by the moment of incorporation.

Bearer Shares

Not allowed.

No-par Value Shares

Not allowed.

Shareholders and Directors

There should be at least one shareholder (a natural person or a legal entity).

There should be at least one director * (a natural person)

* – the majority of the directors must be residents of the European Union.

Nominee Shareholders and Directors

Are allowed.

Taxation

The standard corporate tax rate is 25 %. Depending on the selected business scheme, in a number of cases the tax rate can be reduced to 0%.

Company Name

The name of a company must finish with ApS.

Kommanditselskab (K/s) – a Limited Liability Partnership

Danish Limited Partnership (K/S)

Denmark is not among offshores in the classical understanding of this word, and in general taxes are levied on the global earnings of local companies. But, as it is known, in partnerships partners are the ones paying the dues. Respectively, a Danish Limited Liability Partnership K/S (Kommanditselskab) the activity of which is conducted outside the Kingdom is not a tax resident.

It means the absence of taxes for a K/S and obviously a direct benefit for its leaders. Moreover, Denmark seems prestigious in the eyes of potential business partners and even tax authorities, and incorporation of a company in this jurisdiction may help improve business reputation.

The key outstanding features of a Danish company of such type are as follows:

• There are two partners. K/S is a legal entity with two partners. These are nominee non-residents companies in Denmark. Companies in England and Seychelles.
• The amount of the authorised capital is not stipulated. There are no minimum amounts and limitations for firms.
• The address must be registered in Denmark. The same address is considered the location of the registered office. Physical presence (working telephone, an officer present in the office) in it is not compulsory.
• In Denmark, the income tax is not levied on the proceeds transferred to offshore partners.
• No tax is levied on the partner capital.
• A Danish director is required.

Taxation and Reporting:

A Limited Liability Partnership is subject to the exemption from taxes when partners are not residents of Denmark but are residents of the countries with which Denmark has agreements on the exchange of information.

K/S is a non-taxable entity.

It means that a partnership does not have to file tax returns.

As far as financial accounts are concerned, two nuances should be kept in mind:

– every year financial accounts signed by the Danish specialists, i.e. an auditor and an accountant, are to be filed with the local company register as well as the tax department.

– the accounting period is 12 months, and there can be any interval (traditionally, partnerships choose a calendar year).

Company Name

The name of a company must finish with K/S.