Establishing A Business Entity In Denmark (Updated)

International Lawyers Network


There are several forms of business entities in Denmark and there are a wide range of possibilities for establishing a business entity in Denmark. The most suitable entity depends on a variety of factors, such as nature of the business, the expected activity level, the extent of liability and tax matters. The following will review different possibilities of establishing business entities in Denmark.

1.1 Limited Companies -

The limited companies are characterised by the shareholders liability is limited to the capital invested in the company. The shareholders will not be liable for the obligations of the limited company. The shares in the Public Limited Company (Aktieselskab – A/S) may be offered to the public. It is only the Public Limited Company which can be listed on a regular or alternative market. The Public Limited Company is also the most regulated entity in Denmark. The nominally share capital in the Public Limited Company must be at least 400,000 DKK and the nominally share capital in the Private Limited Company (Anpartsselskab - ApS) must be at least 40,000 DKK. The Private Limited Company is quite similar to the Public Limited Company, but the Private Limited Company is less regulated, and the company cannot be listed on a regular or alternative market. The limited companies are the most common entities for foreign investors.

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