What is a Denmark K/S?
A Kommanditselskab (K/S) is a Danish limited partnership structure that combines elements of a general partnership and limited company. It requires at least two partners: one general partner with unlimited liability and one limited partner with liability limited to their capital contribution.
The K/S is particularly popular among professional service providers, consultants, and businesses seeking tax transparency where profits are taxed at the partner level rather than at the company level.
Key Features
Minimal capital requirement (only €2)
Tax-transparent structure - profits taxed at partner level
Suitable for professional services and consultancies
Requires minimum two partners
Flexible profit-sharing arrangements
Limited partner has limited liability
Important Considerations
Liability Structure
In a K/S, the general partner (komplementar) has unlimited personal liability for all business debts and obligations. Only the limited partner (kommanditist) enjoys limited liability protection.
Tax Transparency
The K/S itself is not subject to corporate tax (0% rate). Instead, profits and losses flow through to partners who pay tax at their individual rates. This can be advantageous or disadvantageous depending on your tax situation.
Requirements & Key Facts
Minimum Capital
€2
Corporate Tax Rate
0% (tax transparent)
VAT Rate
25%
Setup Time
5 weeks
Annual Audit
Required
Minimum Partners
2 (1 general, 1 limited)
Best Use Cases for K/S
Professional Services
Consulting, legal, accounting, and advisory firms where partners actively manage the business
Family Businesses
Where one member manages operations while others are passive investors
Joint Ventures
Temporary partnerships for specific projects with defined profit-sharing
Investment Vehicles
When tax transparency is desired for investment returns
Partner Structure Explained
General Partner (Komplementar)
- • Manages the business operations
- • Has unlimited personal liability
- • Can be an individual or company
- • Makes business decisions
- • Binds the partnership in contracts
Limited Partner (Kommanditist)
- • Provides capital investment
- • Liability limited to capital contribution
- • Cannot participate in management
- • Receives profit share as agreed
- • Can be individual or corporate entity
Registration Process
Partnership Agreement
Draft comprehensive partnership agreement defining roles and profit-sharing
1 week
Partner Identification
Prepare documentation for all general and limited partners
3-5 days
Register with Authorities
Submit registration to Danish Business Authority
2 weeks
Tax & VAT Registration
Register for VAT and partner tax obligations
1 week
Banking Setup
Open partnership bank account
1 week
Ready to Register Your Denmark K/S?
KGN Services provides expert guidance on K/S formation including partnership agreements, registration, and tax optimization.