Incorporation of Company

Onshore Jurisdictions
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Denmark

Denmark is a highly developed member state of the EU which has a standard level of taxation. The rate of corporate tax in Denmark is 25%. Whilst there is no tax relief on income earned from standard trading activities, the law exempts income from tax earned by holding companies such as dividends from subsidiaries. Considering the wide network of double taxation treaties entered into by Denmark, a Danish holding company may serve as an effective instrument when it is used as a founder of resident companies in other countries.

Danish legislation offers the opportunity of registering and using Danish enterprises with a zero rate of tax. These enterprises are known as Komanditsselskab or K/S.The K/S is a limited partnership which has no less than two partners. One of the partners is a General Partner, whilst the other partners have the status of Limited Partners.The legislation by default provides that the operating body of a K/S company is the General Partner. However, there are no restrictions on appointing additional persons to the position of a director or manager of a K/S company. Nonetheless, the General Partner bears the basic responsibility for the commercial activities and for the financial obligations of a K/S company.

Principal Corporate Legislation: Companies Act
Type of Law: Civil
Language of Legislation and Corporate Documents: Danish, Norwegian, Swedish and English
Type of Company for International Trade, Investment & Tax Planning: Anpartsselskab (ApS) – Private Limited Company

Aktieselskab (A/S) – Public Limited Company

Kommanditselskab (K/s) – Limited Liability Partnership

 

 

Anpartsselskab (ApS) - Private Limited Company

Share Capital
The minimum authorised share capital is DKK 50,000 (approx. EUR 6,700). Minimum paid up share capital is DKK 50,000 (EUR 6,700).
Classes of Share Available
Ordinary shares, preference shares, redeemable shares and shares with or without voting rights.
Bearer Shares
Not permitted.
Restrictions on Trading
Banking, insurance, assurance, reinsurance, fund management, collective investment schemes, trust management, trusteeship business provision are not permitted.
Registered Office Required
Yes, must be maintained in Denmark.
Directors
The minimum number of directors is one. Director can be of any nationality and need not be a Danish resident but the majority of directors must be EU residents. Corporate directors are not permitted. Recommended to have a local director.
Shareholders
The minimum number of shareholders is one.
Publicly Accessible Records
Yes.
Nominee Shareholders and Nominee Directors
Allowed.
Location of Meetings of Directors and Shareholders
Anywhere.
Disclosure of Beneficial Ownership to Authorities
No.
Personal Presence Required
Yes.
Taxation
0-25%.
Double Taxation Treaty Access
Argentina, Austria, Belgium, Brazil, China, Cyprus, Finland, France, Germany, Greece, Iceland, India, Ireland, Italy, Luxembourg, Malaysia, Malta, Mexico, Netherlands, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, UK.
Requirements to File Accounts
Yes.
Requirement to File Annual Return
Yes.
Audit Requirements
None.
Currency
Danish krone (DKK).
Exchange Control
None.
Language of Name
Latin alphabet.
Restricted Words
Words such as "Assurance", "Bank", "Building Society", "Royal", "Trust Company", "Trustee Company" etc. will require justification.
Name of a Company
The words "Anpartsselskab" or "ApS" must be part of the name of every company.
Time to Incorporate
2-3 days.

Anpartsselskab (A/S) - Public Limited Company

Share Capital
The minimum authorised share capital is DKK 500,000 (approx. EUR 67,000), only 25% of the share capital or DKK 125,000 (approx. EUR 67,000) must be fully paid up on formation.
Classes of Share Available
Ordinary shares, preference shares, redeemable shares and shares with or without voting rights.
Bearer Shares
Not permitted.
Restrictions on Trading
Banking, insurance, assurance, reinsurance, fund management, collective investment schemes, trust management, trusteeship business provision are not permitted.
Registered Office Required
Yes, must be maintained in Denmark.
Directors
The minimum number of directors is one. Director can be of any nationality and need not be a Danish resident but the majority of directors must be EU residents. Corporate directors are not permitted.
Shareholders
The minimum number of shareholders is one.
Publicly Accessible Records
Yes.
Nominee Shareholders and Nominee Directors
Allowed.
Location of Meetings of Directors and Shareholders
Anywhere.
Disclosure of Beneficial Ownership to Authorities
No.
Personal Presence Required
No.
Taxation
0-25%.
Double Taxation Treaty Access
Argentina, Austria, Belgium, Brazil, China, Cyprus, Finland, France, Germany, Greece, Iceland, India, Ireland, Italy, Luxembourg, Malaysia, Malta, Mexico, Netherlands, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, UK.
Requirements to File Accounts
Yes.
Requirement to File Annual Return
Yes.
Audit Requirements
Yes.
Currency
Danish krone (DKK).
Exchange Control
None.
Language of Name
Latin alphabet.
Restricted Words
Words such as "Assurance", "Bank", "Building Society", "Royal", "Trust Company", "Trustee Company" etc. will require justification.
Name of a Company
The words "Aktieselskab" or "A/S" must be part of the name of every company.
Time to Incorporate
One week.

Kommanditselskab (K/s) - Limited Liability Partnership

Share Capital
Not applicable.
Restrictions on Trading
Banking, insurance, assurance, reinsurance, fund management, collective investment schemes, trust management, trusteeship business provision are not permitted.
Registered Office Required
Yes, must be maintained in Denmark.
Members
The minimum number of members is two.
Publicly Accessible Records
Yes.
Nominee Members
Allowed.
Location of Meetings of Directors and Shareholders
Anywhere.
Disclosure of Beneficial Ownership to Authorities
No.
Personal Presence Required
No.
Taxation
Nil.
Double Taxation Treaty Access
Argentina, Austria, Belgium, Brazil, China, Cyprus, Finland, France, Germany, Greece, Iceland, India, Ireland, Italy, Luxembourg, Malaysia, Malta, Mexico, Netherlands, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, UK.
Requirements to File Accounts
Yes.
Requirement to File Annual Return
Yes.
Audit Requirements
Yes.
Currency
Danish krone (DKK).
Exchange Control
None.
Language of Name
Latin alphabet.
Restricted Words
Words such as "Assurance", "Bank", "Building Society", "Royal", "Trust Company", "Trustee Company" etc. will require justification.
Name of a Company
The words "Kommanditselskab" or "K/S" must be part of the name of every company.
Time to Incorporate
One week.

 

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