Danish Limited Partnership
KS Company
Suitable Activities

The best entity for International Trade

The Danish Limited Partnership (K/S) combines the tax transparency and flexibility typical of a partnership with the distinct legal identity advantages of a company. It allows for the complete avoidance of Danish corporate tax if the partners are non-residents and the K/S, registered in Denmark, exclusively conducts its trade outside of Denmark.

This type of limited partnership operates based on a partnership agreement and can be established by two or more members, who may be individuals or legal entities.
The Danish Limited Partnership comprises two types of partners:

General Partner: This partner possesses managerial control, shares the profits of the firm according to predefined proportions, and carries liability for the partnership’s debts.

Limited Partners: Similar to shareholders in a corporation, these partners enjoy limited liability. This means they are only responsible for the debts incurred by the firm up to the extent of their registered investment and do not have any management authority.

Strategic Partnerships and Joint Ventures
Cross-border collaborations – Franchising or Licensing

KS companies can form strategic partnerships or joint ventures with foreign firms. These partnerships allow for shared resources, expertise, and local knowledge. This can be a good way to mitigate the risks associated with expanding into new markets while also gaining market access.

If the company has a strong brand or product, franchising or licensing its intellectual property abroad can generate income while limiting exposure to market-specific risks.

International Investment and Expansion
Establishing Subsidiaries or Branches
Mergers and Acquisitions

Depending on the size and structure of the company, setting up subsidiaries or branches in foreign markets can help reduce operational costs and offer direct access to local markets. Denmark has a favorable tax regime for international businesses, which can make this a strategic move.

KS companies can explore acquiring or merging with foreign firms to gain market share quickly. This route can be capital-intensive but offers immediate access to established customer bases, distribution networks, and resources.

E-Commerce and Digital Sales
Online Retail or B2B Sales
Digital Products/Software

If the KS company offers consumer goods or services, expanding into international e-commerce markets is a cost-effective way to access global customers. E-commerce platforms like Amazon, eBay, and Alibaba, or niche online platforms for specific industries, can facilitate international expansion.

If the company develops digital products, such as software, mobile apps, or online platforms, offering these services globally through digital channels can be an efficient way to scale.

International Consulting or Advisory Services
Sector-Specific Expertise
Business Development

If the company operates in specialized sectors, such as engineering, law, or finance, it could explore offering consulting or advisory services abroad. Denmark has a strong reputation in areas like renewable energy, maritime industries, and sustainable development, so international consulting in these fields can be a profitable route.

Offering market entry services to foreign businesses looking to enter the Danish market or Scandinavia could also be an interesting business model.

Importing and Distributing Foreign Products
Global Supply Chain Management
Brand Representation

Another strategy is to import products from other countries and distribute them within Denmark or other Scandinavian countries. This can be an effective way to create a diverse product portfolio and meet local demand for foreign goods.

The company can serve as a distributor or representative of international brands looking to enter the Danish or Scandinavian market.

Amongst others.