Denmark - K/S/Other jurisdictions

Denmark is a highly developed member state of the EU, and a jurisdiction with a standard level of taxation (the rate of corporate tax in Denmark is 25%), which can in no way be described as a “tax haven”. At the same time, Danish legislation provides the opportunity of registering and using Danish enterprises with a zero rate of tax. These advantages are enjoyed by enterprises of the K/S type, whose popularity with entrepreneurs increases from year to year.
The K/S is a limited partnership, having no less than two partners. One of the partners is a general partner, while the other partner(s) has/have the status of limited partners.

Usually, the legislation by default provides that operating body of company K/S is the General Partner. At the same time, there are no restrictions to appoint additional persons to position of directors or managers of K/S company, however General Partner bears the basic responsibility for commercial activity and for financial obligations of K/S company.

The registration of a K/S is carried out by the DCCA, the Danish Commerce and Companies Agency;

Taxation. A Danish K/S with foreign partners and which does not carry on business in Denmark is not liable for tax in Denmark. Under Danish tax law, a K/S is not regarded as a taxable entity in its own right (and accordingly, is not required to obtain a taxpayer registration number in Denmark), but the profits derived by a K/S are taxable in the hands of its partners (i.e. the general partner and the limited partner(s)) on a pro rata basis, in accordance with their interest in the K/S, at the place of their residence.