Denmark - ApS/Other jurisdictions
Denmark is a member of the EU and one of the leading countries in terms of the number of double tax treaties concluded with other countries (currently with more than 70). Denmark is generally known as a jurisdiction with a standard level of taxation (income tax in Denmark is 25%), therefore it does not carry any signs of a “tax haven”.
At the same time, the amendments to the legislation adopted in 1998 enable Danish holding companies (Danish Holding Companies, hereinafter referred to as DHC) to transfer dividends received without taxation to their parent companies in partner countries on tax agreements. As for the transfer of dividends to Denmark from many countries, the privileges of double tax treaties concluded by Denmark are in force, the Danish holding company becomes a profitable tool for using as a founder of resident companies in other countries (for example, in Russia, Ukraine, etc.).
The Danish company is treated as a DHC (and, accordingly, has a preferential treatment) under the following conditions:
– it owns at least 25% of the shares in its subsidiary abroad;
– in turn, at least 25% of the shares of DHC itself belong to its "parent" foreign company (it is important that the restrictions on the location of the "parent" company in tax-free zones are not established - however, the benefits will be valid only if the "parent" company is registered in a country that has a double tax treaty with Denmark).
For example, being the owner of at least 25% of shares in a Russian enterprise, DHC can receive dividends from Russia, using the benefits under the Russian-Danish agreement on the avoidance of double taxation, and then transfer dividends received from Russia without withholding any taxes to their "parent" "company in, say, Cyprus.
The only restriction is that preferential treatment does not apply if DHC receives dividends from a “low-tax” financial institution (bank, investment, financial company) whose taxation in the country of its registration is less than 20%.
Company registration is carried out by the Danish Register of Enterprises – DCCA (Danish Commerce andCompanies Agency).
about jurisdictionArea – 43.075 sq. кm
Population – 5.450.000
Government – Monarch
Capital – Copenhagen
Official language – danish
Official currency – danish krone (DKK)
Time zone – GMT+1
Company typeAnpartsselskab (ApS)
Directors of the companyQuantity: at least one
Status: only individuals
Residents: one of the directors must be a resident of Denmark, the rest may be residents of any country
Information on directors: only in the Danish Enterprise Register
Nominee directors: allowed
Shareholders of the companyQuantity: at least one
Status: natural or legal persons
Residents: may be residents of any country
Shareholder Information: only in the Danish Enterprise Register
Nominee shareholders: allowed
Company secretaryThere are no requirements for the position of secretary.
Authorized capital of the companyStandard declared capital – 125.000 DKK;
Must be paid in full before registering a company.
Company nameMust end in abbreviation ''ApS''. Registration of titles containing words ''Bank'', ''Insurance'', ''Trust'' and others, allowed only upon receipt of the appropriate license.
Information about the real owner of the companyInformation about the real owner is submitted only to the registered agent and is confidential.
Annual ReturnAnnual Return is submitted every 12 months after registration.
Financial StatementThe submission of an audited financial statement is carried out annually.
TaxationStandard income tax in Denmark - 25%. Holding operations may be exempted from taxation.
Double tax treatiesAgreements have been concluded with more than 70 countries, including Russia, Latvia, and others.
The term of registration of a new company15-18 business days; The term of receipt of the full package of documents is 6-7 weeks.
Acceptance of third-party companies for service FIVECONSULTOnly in consultation with the previous serving agent in Denmark.
A set of constituent documents of the company1) registration certificate - extract from the database of the Register of Enterprises of Denmark (Transcript) - in Danish - with full information about the company - name, address, information about nominee directors and shareholders, the value of the authorized capital, activities);2) Articles of Association - in Danish, signed by the initial founder of the company;3) translation of both documents referred to in paragraphs 1 and 2 into English;4) Power of Attorney, signed by the nominee director - ordered on a specific person after the company's purchase;5) confirmation of the nominee director of the transfer of the company to its real owner (Nominee Director & Shareholder Declaration);6) stamp of the company.
"Ready-made" companiesWe are ready to register a company for your order in this jurisdiction.
FIVECONSULT comments:Due to its image of standard taxable jurisdiction, Denmark is undoubtedly a very solid and prestigious place to register a company focused on international commercial transactions.When carrying out business activities within the framework of the Danish company ApS, an entrepreneur must reckon with the fact that he uses a full-fledged taxable instrument, which in the “low-tax” mode can be activated only taking into account preferential taxation of specific commercial transactions.