Company registration in Denmark

Denmark

The Kingdom of Denmark is a country in Northern Europe bordering on the Baltic Sea and North Sea. The monarch is a head of state.

Denmark is one of the founding countries of OECD. This country is a member of many international communities: OSCE, EU, WTO, Council of Europe and Nordic Council.

If you want to register a company in Denmark, please ask for advice from competent YB Case experts.

Business advantages

If you are planning to set up a company in Denmark, then we recommend you to consider the following:

  • Highly developed country;
  • Low inflation and unemployment;
  • Skilled workforce;
  • Powerful and profitable hi-tech production;
  • The state is not listed on the offshore black lists;
  • No currency exchange controls;
  • The bank secrecy is controlled at the government level;
  • Denmark has signed over 70 double tax treaties.

Denmark is one of the richest states with high taxes. However, the state offers many advantages and ways to save on taxes for non-residents.

Legal forms

There 3 business entity types which you can choose in order to register a Danish company:

  1. Kommanditselskab (K/S) LP. If the founders are non-residents, the partnership does not pay taxes and does not have a tax number;
  2. Aktieselskab (A/S) JSC. The standard income tax rate is 25%. In some cases, the corporate tax rate may be reduced to 0%;
  3. Danish Holding Company. One of the most common organizational forms of a company. Provided that certain requirements are met, the holding may receive zero tax status.

How to register a K/S in Denmark?

Please, note that:

  • You will need to obtain a license in Denmark for registering a name of the company with words insurance, bank, etc.;
  • The minimum number of founders – 2. They can be individuals and legal entities of any nationality. Information about the founders is available to third parties;
  • The minimum number of partners – 2 (for registering of a general LP in Denmark or limited LP). An offshore company, which will be responsible for the partnership, can act as a general partner. The general partner holds the majority of shares (51%);
  • Annual meetings of shareholders are required;
  • Director is required (individuals and legal entities may also hold this position). The post of director may be held by the founder or general partner;
  • A financial report signed by the local accountant and auditor is filed once a year;
  • The partnership must have a registered office in Denmark;
  • There are no minimum share capital requirements for registering a partnership in Denmark;
  • DTAA does not apply to K/S.

How to register an A/S in Denmark?

You have an opportunity to set up a Public Joint Stock Company in Denmark or a Private Joint Stock Company.

We recommend you to choose the Public JSC with the following requirements:

  • The suffix A/S in the name of the company;
  • The two-level board: a board of directors and a supervisory board;
  • The minimum number of shareholders is 1. It can be an individual or legal entity of any nationality;
  • The minimum share capital is 17,000 EUR;
  • The registered office within the country.
  • No-par shares are permitted;
  • An annual audit and financial statements (in Danish).

How to open a Danish Holding Company?

If you are intended to register a holding company in Denmark, please consider the following:

  • There are no capital tax, stamp duties and transfer taxes;
  • Holding companies can be used to own foreign property;
  • Accounting submission is possible online;
  • There is an ability to maintain accounting in any currency.
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