Company Formation in Denmark
Danish Limited Partnerships (K/S)
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.
Key Tax Advantages:
VAT registration in Denmark is not generally necessary for non-resident partners. In cases where VAT is required for a non-resident K/S, please contact us to explore options, including Shelf Company with VAT.
The K/S enjoys a 0% Danish corporate tax rate if its profits are distributed to offshore partners.
A minimum of two partners is required: one General Partner and one Limited Partner. Offshore entities can be utilized, but at least 50% of the partnership should be held by an EU company or an offshore company with a Double Taxation Treaty (DTT) in Denmark.
Unlike other business structures, Limited Partnerships do not have share capital; instead, they have “capital” contributed by the partners, with the specific amount determined by the partners.
There is no need for a director, as the Limited Partnership can be managed by the General Partner. However, if the plan is to have the Limited Partnership managed by a director, a Danish director is required for successful registration.
Services
Our comprehensive administrative services encompass:
- Registration of your business name.
- Maintenance of statutory registers and other formal documentation.
- Provision of a registered office address, domiciliation, and the safekeeping of mandatory company files.
- Assistance with opening bank accounts.
- Expertise in bookkeeping services.
- Preparation, attendance, and/or drafting of minutes for annual general meetings, board meetings, and other corporate gatherings.
- Support in preparing and executing resolutions.
- Assistance with the preparation and filing of forms for any changes in your company.
- Handling all incoming and outgoing correspondence.
- Offering general corporate and legal assistance.
- Tackling any ad hoc tasks or requirements as needed.
Our company licensing services
— What we do and do not do
Our company is EXCLUSIVELY engaged in assisting worldwide clients, either individuals or corporate entities, to get duly and properly licensed with local Regulators and Financial Authorities to get respective official licenses to legally carry out their cryptocurrency or financial related business activities.
TBA & Associates Tax Business Advisors does not provide or carry out any sort of Cryptocurrency or Financial services!
Disclaimer: While TBA & Associates strives to make the information on this website as timely and accurate as possible, the information itself is for reference purposes only. You should not substitute the information provided in this article for competent legal advice. Feel free to contact TBA Customer Services for advice on your specific cases.