Denmark: holding companies and limited partnerships in tax planning

Company Express offers Denmark company registration. Denmark is a sovereign state, a Nordic country under a monarch. The state capital is Copenhagen. Danish is the official language. Regional languages recognised are Faroese, Greenlandic and German.

Advantages of Denmark company registration

A Danish holding company, known as an Anpartsselskab (ApS), with limited liability:
1. Is a Danish resident for tax purposes
2. Enjoys advantages derived from double taxation agreements
3. Is formed for operations in payable and receivable dividends, interest and royalties
4. May be managed by nominal directors
5. Convenes annual meetings anywhere in the world
6. Keeps company documentation in a place specified by shareholders
7. Enjoys the benefits of no currency control

Danish limited partnership Kommanditselskab (K/S)

In this type of partnership general partners are jointly liable under the partnership commitment. Limited partners are liable to the extent of their personal contribution into the partnership. Natural persons and corporations of various jurisdictions, including offshore ones, are able to be partners. A Danish limited partnership K/S should appoint a Danish resident as director.

What documents will you receive upon Denmark company registration – ApS?

1. Certificate of Incorporation
2. Memorandum and Articles of Association
3. Appointment of First Directors
4. Consent Actions of Board of Directors
5. Registers of directors, shareholders and other officials
6. Resolution on allotment of shares, documentation storage and registered address
7. Share Certificate
8. Company Seal

Taxation and statutory requirements at a glance

A Danish limited partnership K/S is free from taxation on condition that its source of income, the partners themselves and the business operations centre are not in the territory of Denmark.
The standard corporate tax rate in Denmark is 22%. Capital gain is recognised as income. Capital gain derived from affiliated company is not taxed.

Withholding tax

There is no withholding tax on dividends paid to non-resident companies derived from an affiliated company’s, or group of companies’, shares.
The withholding tax rate on royalties is 25%. The rate may be reduced as stated in the double taxation agreement.

Interest payments are not taxed.

Accounting, audit and filing requirements

For Danish limited partnership K/S:
Keeping accounting records is obligatory. An annual financial report and audit report must be filed with the ‘Danish Central Business Register’ and tax inspectorate. There is no requirement for a tax return to be filed.
For Danish company Anpartsselskab (ApS):
Keeping accounting records is obligatory. An annual financial report has to be filed with the Danish Central Business Register within 6 months of the end of the financial period.
Tax returns, together with an audit report, have to be filed within 6 months of the end of the financial period, normally December 31.

Please do not hesitate to contact us if you are interested.

Company Express is ready to help solve your problems. Consultations are free.

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