Company in Denmark

Denmark is not on the list of typical offshore zones. However, the country refers to objects of priority investment with the developed economy. Foreign companies registered within the territory of the Scandinavian state may rely on the reduction of tax rate and receive tax benefits.

Filing Procedure

For just one day, the specialists of the Private Financial Services will render assistance to purchase the registered company or to open a new company. To proceed with the procedure of registration, the client is enough to provide full personal data about the future owner, the rest of work for us.
Attention! Special offer for our clients. We do not require full prepayment for services that have not been performed. Pay thirty percent of the cost of services, get your documents for the company. Only after you verify authenticity of the complete package and validity of data specified, you are required to pay the remaining seventy percent.

Legal Forms of Companies

The Danish legislation allows the following forms of company functioning:

  • Joint-Stock Company of open-type. At least three founders should participate;
  • Closed-type Joint-Stock Company. The founders can be both natural persons and legal entities. Restriction on membership – at least one member;
  • Limited liability Partnership. Main requirement is at least one director general who has authorities with unlimited liability, one partner has the limited liability;
  • Limited liability Company;
  • subdivisions, affiliates, branches of foreign companies.
  • Offshore companies and corporations.

The Danish legislation allows the following forms of company functioning:

Companies that register and operate in Denmark most likely choose among the following business legal forms – Limited Liability Partnership and Closed-type Joint-Stock Company.

Anpartsselskab: peculiarities of registration and operation process 

The main advantage of the joint stock company in the absence of the requirement to specify the purpose of the company. As a rule, this provision is required to be included in the Constituent Agreement. However, all members in incorporation process will be listed in the registration documents.

There are no accounting records in the tax haven countries since Denmark does not refer to typical offshore zones, and companies need to report to relevant authorities once a year. The obligatory forms of reports include the Annual Return and Financial Statements.

The amount of the authorized stock capital should be paid by the owners in full. The size of the authorized stock capital can not be less than the specified amount which is One Hundred Twenty Eight Thousand Danish kroons.

At least one shareholder should be there in the JSC, without restriction of status – a legal entity or a natural person and a director (natural person).
The earned profit is taxed at the rate of twenty five percent. In order to obtain benefits and advantages, the company needs to transform and function as a holding.

The main benefits are as follow:

  1. Zero tax rate on the income of a legal entity, which is received from a subsidiary. The only requirement is that the holding company should have an affiliate for at least three last years.
  2. Dividends at the source of payment are taxed at the rate of zero percent. Restriction – A company on the territory of Denmark should own at least fifteen percent of shares and more in a foreign subsidiary.

Despite significant advantages of the Memorandum of Association, if activities of the holding company performed solely for the sake of tax benefits are proven as established, all of them will be annulled.

For the rest of companies, the value added tax shall be twenty-five percent, the license fee as royalty– twenty-five percent. A tax of twenty eight percent is levied on the dividend at the source of payment.

The zero tax rate on royalties is allowed for an enterprise if one of the parties, the copyright owner, is a resident of the country with which Denmark has signed the double taxation agreement. Another requirement is that the company should own shares of the company (from ten percent) for the last twelve months.

Upon registration of the company the owner will be submitted the following documents:

— registration certificate;
— Memorandum of Association (Charter);
— statement signed by the founder;
— a sheet apostilled.

If the business owners use the service of hiring a nominee director or shareholder, the following documents will be required:

  1. For the nominee Director (a resolution on issue of a power of attorney), power of attorney with the apostille, waive to act as the Nominee director (with blank “Date” box), a letter of consent from the Nominee director on provision of nominal services; a letter of consent from the Nominee director for assuming office, declaration of the Nominee director.
  2. For nominal shareholder (Tax Trust Declaration and document of transfer of ownership rights to shares).

Kommanditselskab: procedure of liabilities formation and taxation

Participation of at least one director and two founders is required to register the Danish limited partnership. A binding requirement for one of the directors is to have the status of a Danish resident. Personal data of partners and directors are shown in the open registry database. Personal information and information about the real owner of K/S are not published.

The amount of the authorized stock capital is defined as one thousand Euro; it should be paid in full until the end of the budget year.

Denmark does not refer to offshore countries, so partnerships in Denmark are required to submit annual reports to relevant authorities.
Involvement of auditors for verification is a must if the total monetary assets exceed Five Hundred Thousand or if the I/C turnover amounted to more than One Hundred Thousand Eight Euro.

The amount of the value added tax is twenty-five percent. Partnerships may be exempted from tax returns to fiscal authorities if the company’s profits are from activities outside Denmark with partners without resident status.

Package of documents for the limited partnership:

— extract from the registry database with full information about the company;
— Charter (Memorandum of Understanding);
— sheet with the translation of the database extract and the Charter into English;
— minutes ofmeeting of authorized persons;
— nominal general power of attorney;
— shares certificates (certifying the right of ownership);
— nominee service agreement;
— seal of partnership.

Main benefits of Danish jurisdiction

There is a number of reasons to register and do business on the territory of Denmark:

  1. Agreements signed with many countries on double taxation.
  2. Anonymity and protection of personal data through hiring of nominee shareholders and directors.
  3. Prestige of the state.
  4. State program to support non-residents, transparency of legislative base.
  5. Reduced tax rates.
  6. Investment attractiveness and social and economic development of infrastructure.

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