Denmark is one of the most highly developed European countries. Therefore, it is attractive to foreign capital owners in terms of profitable investment opportunities. Although Denmark is not an offshore zone in the sense that we are used to, this jurisdiction offers foreign firms some privileges in terms of paying taxes.
Registration of an enterprise in Denmark is permitted in several of the following forms:
The most common company options in Denmark are VET (K/S) and ZAO (ApS).
How this type of company compares favorably with others is the flexibility of the articles of association. The legislation does not specify disclosure requirements regarding the purpose for which a company is registered. Along with this, the composition of the firm’s members is included in the memorandum of association. Each year, 2 reports must be sent to the representative offices of the authorized bodies, namely, the Annual Return and the Financial Statement. As for the authorized capital, it must be paid in full in the amount of 128 thousand Danish crowns.
Profits earned by the company are taxed at a rate of 25%. If the company operates in Denmark as a holding company, it will be granted the following tax privileges:
The standard rate for VAT is 25%, royalties are also taxed at 25%, and the rate for the source of dividends is 28%. The zero rate is quite realistic, however, only on the condition that we are talking about royalties in which copyright is used, and the recipient is one of the residents of a state with which the Danish jurisdiction has an agreement regarding the exclusion of double taxation.
The following documents are required:
If an entrepreneur intends to resort to nominee services, he will need to prepare additional official papers.
The partnership must consist of at least 2 founders and 1 director. Moreover, it is necessary that a Danish resident be appointed as one of the directors. The capital is equal to 1 thousand euros. This amount is paid before the end of the financial period.
Every year, partnerships are required to submit reports to the institutions of authorized structures, since Denmark is not a classic offshore zone. An audit is needed if the total amount of assets in material equivalent is more than 500 thousand, or the company’s assets-turnover exceeds 100 800. VAT is 25%.
Pros of Danish jurisdiction
Several good reasons make Denmark so attractive to foreign entrepreneurs:
If you need to register a company in Denmark, our specialists will help you register a company quickly and efficiently. Also, you can buy a ready-made company in Denmark. Write to us in the CRM form and we will help you register a company.
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