Company Registration: Denmark. Ready-Made Company ApS

Danish holding companies are used to own subsidiaries and participate in European groups. The possibility of relief for dividends and capital gains depends on current participation rules, the tax status of the subsidiary and the applicable EU or DTT provisions.

A Danish K/S can be considered for joint projects and investment structures where a partnership form is suitable for the participants. The tax result of a K/S is normally considered at partner level, taking into account their status, the nature of the activity and applicable international rules. Before registration, we separately review the tax classification of the partners and the place of effective management.

For a standard operating business in Denmark, ApS is usually selected. If the project involves a holding structure, trade through several countries or international financing, we can also compare a Danish company with the United Kingdom, Switzerland and other European options by tax, accounting and account-opening possibilities.

A public limited company (Aktieselskab — A/S) may be established by one or more founders. The minimum capital of an A/S is DKK 400,000. Capital may be denominated in Danish kroner or euros; the amount that must actually be paid in is determined by the current registration rules.

The company is managed by a board of directors, with at least one member appointed as the managing director of the A/S. If the managing director is not resident in the European Union, the majority of board members must be EU residents. Shareholders may also be directors of an A/S and vice versa.

For an ApS, the management structure is determined by the articles and the current Danish Companies Act. Whether a separate board is required depends on the management model selected and the requirements applicable to the company.

Limited partnership (Kommanditselskab - K/S)– is formed by at least one general partner with unlimited liability and one or more limited partners.

The general partner of a K/S may be an individual or a legal entity, resident or non-resident in Denmark.

A K/S is managed by a director, who may be the general partner or a person or legal entity appointed by the general partner. In practice, the director is often resident in Denmark, although the law does not impose this as a general restriction.

For I/S and K/S, the law does not set the same fixed minimum capital as for ApS or A/S. Contributions and partner liability are defined by the partnership agreement and the form selected.

Danish companies maintain and file information on legal owners and beneficial owners under the current CVR/Erhvervsstyrelsen rules.

Danish A/S and ApS companies apply the current 22% corporation tax rate. Taxation of a K/S depends on its tax classification and the composition of its partners.

A K/S is normally treated as a tax-transparent form where the tax result is attributed to the partners. For an international structure, anti-hybrid rules, partner composition and their tax residence are reviewed separately.

The standard VAT rate in Denmark is 25%. For ordinary taxable goods and services, VAT registration becomes mandatory when turnover exceeds DKK 50,000 within the prescribed period; voluntary registration may be possible below this level.

Taxes on dividends, interest, royalties, capital gains and real estate depend on double taxation agreements signed by Denmark with countries including:

Denmark has a broad network of double taxation agreements and applies EU rules to qualifying intra-group payments. For dividends, interest and royalties, we review the recipient country, participation percentage, beneficial ownership and the terms of the relevant agreement before a payment is made.

Denmark is located in Northern Europe and is a constitutional monarchy. The official currency is the Danish krone (DKK), and the capital is Copenhagen. International business most often uses ApS or A/S, with the specific form selected according to capital, ownership structure and planned operations.

Danish companies from a corporate-law perspective.

The two main Danish company forms are:ApS, that is, a private limited company, and A/S — a public limited company, as well as partnership forms of businessK/S— historically compared with a US LLC or a UK LLP, although its tax treatment depends on the structure and partner classification.

Applicable to both company forms:

• Limited liability companies with share capital that issue shares and may distribute dividends.
• At least one shareholder is required.
• A shareholder may have any nationality and residence.
• The companies may benefit from applicable double taxation agreements and EU directives.
• They are required to file reports with the relevant state authority.

Applicable only to ApS companies (private limited companies):

• In practice, many companies with foreign shareholders use this form of incorporation.
• They must have at least one director.
• They may have a supervisory board (optional).
• The minimum paid-up capital of an ApS is DKK 20,000.
• New bearer shares cannot be issued in Denmark. Ownership rights are documented through registered interests or shares and recorded in corporate registers under the current rules.

Applicable only to A/S companies (public limited companies):

• They must have at least one director.
• They must have a supervisory board of three persons; one may be a director of the company but may not be the chairman of the board.
• The minimum paid-up capital of an A/S is DKK 400,000.
• New bearer shares cannot be issued in Denmark. Ownership rights are documented through registered interests or shares and recorded in corporate registers under the current rules.

Tax update: taxation of K/S partnerships in Denmark.

Explanation of legislative changes.

A K/S in Denmark is considered separately from ApS and A/S. Its tax classification depends on partner composition, management and the specific structure. Before registration, we therefore check whether the partnership will be tax transparent and where tax arises for the partners. This analysis should be completed before the formation documents are signed.

We consider registration and administration of a Danish company for a specific business purpose. Before work starts, we compare ApS, A/S or a partnership, calculate capital, accounting, VAT and first-year maintenance, and then propose a bank account or a European payment institution / EMI.

If the project requires another European jurisdiction, we can compare Denmark with Switzerland, the Netherlands, Estonia or another country by registration cost, taxes, accounting and banking.

We will be pleased to answer your additional questions.

Get a free consultation and commercial proposal for a company in Denmark

Choose a jurisdiction for company registration

Compare jurisdictions by registration options, taxes and reporting, annual maintenance and options for bank payments without currency control.

AustriaBelizeBVICanadaChinaCyprusDenmarkDominicaEstoniaGermanyGibraltarGuernseyHong KongHungaryJerseySt Kitts and NevisLabuanLiechtensteinLuxembourgMacaoMaltaIsle of ManMarshall IslandsMongoliaNetherlandsPanamaSeychellesSpainSt Vincent and the GrenadinesSwedenSwitzerlandUnited KingdomUruguayUnited States