Denmark - K/S

Company formation

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.

Company in Denmark

Benefits of registering the company in Denmark

Companies that register in Denmark will not be exempt from the tax burden since the country is not a typical offshore. According to the applicable legislation the tax should be paid in total for the profit received in all countries of the world. However, preferential rates introduced, the possibility of tax rate reduction and the loyal system of deduction make Denmark as an attractive place for foreign businessmen to settle. Despite the fact that Denmark is not specified as the offshore zone, foreign enterprises that register in the country will be granted a variety of advantages and opportunities. Main benefits of commercial activity registration in the territory of Denmark are the following:

No hard currency regulation;

Status of prestigious and stable jurisdiction. The policy of the state has good will;

The country is not a “tax haven”, it is not on the list of regions not recommended to collaborate;

70 countries of the world signed the double taxation agreement with Denmark (including Russia and Ukraine);

Warranty of complete confidentiality and anonymity of personal data of founders and owners;

Complete package of documents to be ready for just one business day;

Possibility of document delivery to any country of the world;

Simplified and encouraging tax policy of the government.

Company in Denmark

Specificity of the registerin

To register a company, the following is necessary to register a new company or to choose one running company from the offered list. Then to submit complete personal information about the owner of the company for registration and to make a prepayment for registration. The registered company will receive the following package of documents:

Without a nominal service:

Certificate of formation;

Operating agreement;

Statement of organizer;

Page with apostille.

With a nominal service:

Resolution on registration of power of attorney;

Power of attorney with Apostille;

Resolution on the director replacement with open date;

Letter of acceptance to act as the Nominee Director;

Refusal to act as the Nominee director with open date;

Nominee Director’s declaration on the provision of nominee services;

The trust tax return from the nominee shareholder;

Transfer documents for shares, open date.

Taxation

The corporate income tax rate is 25%. If the company receives the status of holding, it will be granted a variety of benefits. The amount of tax on dividends from the foreign subsidiary company is equal to zero.

Company in Denmark

The basic requirement is that the company of Denmark is obliged to own a package of shares (at least fifteen percent) for a period of twelve months or longer. Besdies, a subsidiary should not be classified as a “low-tax” company. Under other conditions, CIT (corporate income tax derived from the subsidiary) is equal to zero if the holding owns a subsidiary for three years long. In such a case, a subsidiary should not belong to a company with the low tax burden.

For companies there is a limitation in terms of debt capitalization. The company’s total loans should not exceed its capital four-fold. If the total share of loans exceeds the size of the capital five times or more, the decision is made on the impractical payment of interest, which in turn does not contribute to reducing the tax burden.

If the main purpose of company is to get benefits to avoid double taxation (by signing the international agreement) and this will be proved adequately − the holding shall be deprived of benefits based on corporate laws. The fixed value-added tax rate is 25%. The rate on periodic form of license fee payment (royalties) is 25%. Profit as dividends is levied at the source of payment at twenty eight percent. Zero royalty rate can be obtained by the enterprise in case if the company holds transactions related to fees (payment for the use of copyright).

The beneficiary of the cash compensation shall be a resident of the European Union or another state (with which the double taxation agreement is signed). One tenth of all shares of the firm for a period of not less than twelve consecutive months must belong to the legal entity (beneficiary of remuneration).

Company in Denmark

Documentation package

Package of documents for the limited partnership:

Nominal general power of attorney;

Charter (Memorandum of Understanding);

Extract from the registry database with full information about the company;

Sheet with the translation of the database extract and the Charter into English;

Shares certificates (certifying the right of ownership);

Minutes ofmeeting of authorized persons;

Nominee service agreement;

Seal of partnership.

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 30% 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 70%.

Get a personal offer!