The most commonly registered form of Danish company is «Kommanditselskab» or «K / S», which is a limited liability partnership with the activities conducted outside Denmark. This company is not a tax resident of Denmark.
There are no specific requirements how to name Danish K/S company, however it is important to use the abbreviation “K/S” at the end.
All the partnerships are usually established with a 5 000 euro share capital. There is no requirement for paid-in capital.
At least one general partner (natural or legal person of any residency), with unlimited liability and one or more partners with limited liability (residents of any country), form the Danish K/S. If the General Partner is a natural person, such partnership shall be registered only with the tax authorities in Denmark.
At least one director of the company must be a resident of Denmark. Information about directors, managers and the General Partner is stored in Danish Register of Companies, but names of company owners and partnerships are not publicly available. The names of the Shareholders must be shown in the annual tax report.
An incorporation of the Danish K/S takes approximately 6 to 8 weeks.
Danish ApS (Anpartsselskab) is a company with a limited liability. One natural or legal person can establish ApS, both resident and non-resident of Denmark. The minimum paid-in capital of the company is 17 000 euro. To manage a company at least one director is needed, who is natural person-resident of Denmark. If authorized capital of ApS exceeds 670 000 euro, the company is obliged to form the Board of Directors.
K/S is not subject to the taxation in Denmark, because partners are assessed with taxes in a place of their residency (in proportion to their participation). If partners are non-residents and source of their income is outside Denmark, partnership is not obliged to submit any declaration to the local tax authorities.
Taxation of Danish ApS
According to the Law of Denmark holdings, dividends received by a Danish holding company from foreign subsidiaries of non-financial companies will be exempt from tax in Denmark, regardless of taxation in the country of the branch. It is necessary, that the holding had owned at least 20% of the share capital of the subsidiary for one year. If these conditions are not met, then 66% of the dividends received will be charged on the taxable profit of the holding.
Accounting and audit of Danish companies
All limited liability companies incorporated in Denmark must file an Annual Report, including Financial Statements, notes with the Danish Commerce and Companies Agency. The Annual Report must be prepared in accordance with the Danish GAAP or IFRS. The law of “The Danish Financial Statements Act” defines the Danish GAAP. The Annual Report must be filed no later than 5 months after the year-end.
An audit in Denmark is carried out in accordance with the Danish Standards on auditing, which fully comply with the International Standards on Auditing. Smaller companies can decide not to have the Annual Report audited by an independent auditor if certain conditions are met.
In Denmark it is allowed to appoint nominee directors for both K/S and ApS companies.
Opening a bank account for Danish companies
For a Danish company you can open a bank account in any of our partner banks.
It is important to keep in mind that every bank account opening procedure is individual and depends on the accuracy and timeliness of information and documents provided by the client.