The Danish private limited company (ApS) is one of the most popular legal forms in Denmark. To register it, a minimum share capital of DKK 40,000 is required. The rest of the formalities in the registration process are very easy to comply with, which certainly contributes to making it one of the most popular Danish forms of doing business. However, if you need any help with setting up an ApS company in Denmark, please contact us - we will be happy to assist you.
LLC in Denmark can have one or more owners. The position of director in a Danish ApS company can be held by either the owner or an elected outsider. The Danish governing body Anpartsselskab also imposes no restrictions on the number of directors in an ApS company - such a position should be held by at least one person, but nothing prevents more. Importantly, there is also no requirement that directors must be Danish tax residents. In addition, a Danish Ltd company should also have a Supervisory Board, consisting of a minimum of three members, and management.
It is definitely faster, easier and less expensive to register an ApS company than other Danish companies. The total cost of registration, not including share capital, is only DKK 670. However, if the company's owners decide to establish the company through a law firm, one should expect a cost oscillating between DKK 3,000 and 5,000. Once you have prepared all the required documents, i.e. Articles of Incorporation, Articles of Association and also share capital, you can register the company with Erhvervsstyrelsen, the Danish Enterprise Authority. Once your ApS company is registered, it's important to establish a professional business presence. Our virtual office service in Denmark provides a prestigious business address, making it easier to manage operations without the need for a physical office. This is an excellent option for foreign owners or those who do not require a permanent office space.
What is needed to register a private limited company in Denmark?
I. Share capital of min. DKK 40,000.
II. Articles of association of the ApS company.
III. Articles of incorporation of the ApS company.
IV. Registration with the Agency for Enterprise and Trade.
The share capital must be a minimum of DKK 40,000 and can later be used by the company, for example, to cover company expenses, dividends or salaries. The most common form of share capital payment chosen by entrepreneurs is cash, as the process is relatively quick and simple. It is also possible to make a non-cash contribution by depositing selected assets, such as goods or inventory. In this case, there are inevitably higher costs associated with the deposit of capital and the lengthening of the entire process of registering an ApS company, since the deposition of assets involves the need to provide documentation confirming the actual value of the assets.
The Danish company ApS is subject to the Private Limited Liability Company Act and has legal personality. This means that the company's capital is separate from that of its owners, and they are not liable with their own assets for obligations that have been incurred by the company. Therefore, the share capital that is paid during the registration process of an ApS company cannot later be transferred to the private account of the owners, as it constitutes the company's assets.
Once a Danish LLC has been successfully established, it must also be registered with the Trade and Enterprise Agency within 3 months of signing the incorporation agreement.
For a Danish ApS company, tax representation in Denmark is not mandatory, but it is a highly beneficial option that is certainly worth considering. It ensures proper VAT compliance in accordance with local regulations, which can significantly simplify company management. With our tax representation in Denmark, you can be confident that your ApS company meets all legal requirements, minimizing the risk of errors and associated penalties. We also offer services related to ensuring compliance and submitting Intrastat declarations in Denmark. Contact us to learn how we can support your ApS company with VAT matters and other accounting and tax services.
Both registering and running a company are extremely easy and favorable to entrepreneurs in Denmark. This makes many foreign investors choose not to open their businesses in this country. The process of setting up a business is instant and involves minimal costs, which is very favorable for those who want to run a business on their own and/or have limited financial resources. Denmark stands out as having one of the lowest corporate income taxes among European countries, at just 28%. What's more, in case an already existing company abroad wants to expand its operations specifically to Denmark, it can count on the same rights and privileges as Danish companies. In addition, the social burden is also extremely low, as social and health insurance amount to just 1% of the wage fund. The Danish market is also conducive to business development, as there are no top-down restrictions on doing business. There are many reasons to open a business in Denmark. If you are considering this decision or need help with ApS company registration, contact us - our experts will provide you with professional assistance.