Company formation in Denmark
The Danish Limited Partnership (K/S) incorporates the tax transparency and flexibility of a partnership, as well as separate legal identity benefits of a company. Danish corporate tax is avoided completely if there are non-resident partners and if the trading company works solely outside Denmark.
The Danish Limited Company (ApS) is most advantageously used as a holding company, thanks to Denmark's extensive network of double-taxation treaties with more than 80 countries. Using the ApS as a shareholder of a foreign company, the standard Danish corporate tax rate of 25% can be reduced or eliminated entirely for dividends, royalties and withholding taxes.
Denmark shelf Companies with VAT available. Ask now.
DANISH LIMITED PARTNERSHIPS (K/S) FOR TRADING
The Danish Limited Partnership (K/S) may be used for trading, especially when a “white” entity is needed. Danish corporate tax is avoided completely if there are non-resident partners (at least 1 that is from the EU), and if the Limited Partnership trades solely outside Denmark.
The Danish Limited Partenrship consists of 2 partners:
- The General Partner, which has management control, shares the profits of the firm in predefined proportions and carries liability for the debts of the partnership.
- Like shareholders in a corporation, the Limited Partners have limited liability, meaning they are only liable on debts incurred by the firm to the extent of their registered investment and have no management authority.
- VAT registration in Denmark with non-resident partners is unlikely successful. In case VAT is required for a non-resident K/S, please contact us for Shelf Company with VAT.
- 0% Danish corporate tax if profits are passed to the offshore partners.
- Minimum two partners; one General, one Limited Partner (offshore entities can be used, but at least 50% is to held by an EU company or offshore company with DTT in Denmark).
- Limited Partnerships do not have share capital, rather “capital” that is contributed by the partners (the amount is determined by the partners).
- No need for director, Limited Partnership can be managed by General Partner. If there is planned that Limited Partnership shall be managed by director, Danish director required for successful registration.
DANISH APS AS HOLDING COMPANY
Danish limited company (ApS) is most advantageously used as:
Holding company. Denmark has extensive network of double-taxation treaties with more than 80 countries. Using the ApS as a shareholder of a foreign company, the standard Danish corporate tax rate of 25% can be reduced or eliminated entirely for dividends, royalties and withholding taxes.
Owner of foreign real estate. Danish company taxation law states that an ApS is not taxable of income that comes from a permanent establishment or real estate located outside of Denmark.
- Shelf Companies available. Ask now.
- Danish Bank account can be opened through our office. No personal visit required!
- VAT registration service available if required.
- Minimum share capital is: €17,000
- Minimum 1 director is required. No restrictions on foreign shareholders and directors.
- CORPORATE INCOME TAX (CIT): The standard rate is 25%.
The Danish Limited Liability Partnerships (K/S) can be exempt from corporate tax, provided that the company is operated outside of Denmark and does not trade in Denmark.
- INCOMING DIVIDENDS: 0% on subsidiary shares if (i) the shareholder owns at least 10% of the Company; (ii) the subsidiary is a resident tax payer in EU or treaty jurisdiction.
- CAPITAL GAINS TAX (CGT): 0% if gains are received from subsidiary shares if (i) the shareholder owns at least 10% of the Company; (ii) the subsidiary is a resident tax payer in EU or treaty jurisdiction.
- WITHHOLDING TAX:
ROYALTIES: 25%, which can be reduced under tax treaty or EU Directive on Royalties.
DIVIDENDS: 0% on dividends paid to a foreign company if distributing shares are subsidiary shares, i.e. the shareholder owns at least 10% and recipient is a resident tax payer in EU or treaty jurisdiction. Otherwise, tax rate is 27%.
INTERESTS: generally 0% to a foreign unrelated entity.
- BILATERAL TAX TREATIES with 60 countries including Cyprus, Singapore and South Africa.
- VALUE ADDED TAX (VAT). EU VAT regime. The standard rate for inland sales is 25%.