To open a limited company – anpartsselskab (ApS) can be a quite challenge. An anpartsselskab is a Limited Company and the most used company form in Denmark. The characteristic about an ApS is the limited liability and the low share capital that shall be paid in to format a limited company. The minimum share capital for an Anpartsselskab is DKK 40,000.
In the following you will get to know all the basic of how to open a limited company (ApS)
Conditions to format a company
- Minimum share capital of DKK 40,000
- An owner which can be a personal or legal entity or both
- Danish mailing address
- Minimum 1 director
Share capital
To open a limited company in Denmark, you need to invest DKK 40,000 as share capital. The amount of DKK 40,000 belongs to the company and can be freely used by the company once it is formed to e.g. bills, lease etc.. The capital is not restricted but cannot be withdrawn directly; however, you can retrieve the money from the company by taking it out as dividends or salary after the company has been formed.
In practice, the amount must be deposited into a lawyer’s client account to demonstrate the presence of the share capital before the company is formed. Only lawyers and a few other professions have the authority to verify the existence of the share capital. Therefore, it is essential to have someone who can confirm the presence of the share capital when forming a company in Denmark.
The owner
The owner of a limited company (Anpartsselskab) can be either an individual or a company. Additionally, foreign individuals and companies are allowed to own shares in a Danish company as well. The minimum number of owners for a Limited Company (ApS) is 1, irrespective of whether it is an individual or a company. An limited company can also have multiple owners, comprising various combinations such as one person and a company, two companies, two individuals, and so on.
Danish mailing address
When operating a limited company in Denmark, having a physical mailing address is mandatory. This address is typically utilized by the authorities, as many of their communications are sent via postal mail. Some correspondence may also be directed to your digital inbox on mit.dk. It is not necessary to have a physical office in Denmark to meet this requirement. An alternative is to lease an address, such as one from an ‘office hotel.’ Our Partners will also be able to provide a mailing address for a low cost.
Director
The minimum requirement for the management of a limited company (ApS/Anpartsselskab) is one director. However, it’s up to you whether you want to appoint two or more directors or establish an executive board. The appointed director(s) will be registered in the CVR register whihold by The Danish Business Authorities. The director is responsible for both day-to-day operations and strategic decision-making.
If you want to read more about other company structures, it can be done in this article.
