Creating a New Limited Liability Company in Denmark (APS)

INCORPORATION OF A NEW APS COMPANY

To start a new company in Denmark called an ApS, you must register with the Danish Enterprise Authority (Erhvervsstyrelsen) and provide a share capital of at least DKK 40,000 to finalize the registration process.

YOU CAN USE THE DEPOSITED SHARE CAPITAL FOR COMPANY EXPENSES

When the share capital is deposited in the new ApS company, it becomes the property of the company and not the owners. However, the owners are allowed to utilize this equity for company expenses, employee salaries, and dividends.

DO NOT BORROW MONEY FROM THE COMPANY IF YOU ARE THE OWNER

Although borrowing money from a company that you own is not technically prohibited, it is generally not recommended as the associated tax implications can be very unfavorable.

MANAGEMENT

An ApS company is permitted to have one or more directors, and there is no restriction on the owners also serving as directors. It is also possible for the directors of the company to be either residents or non-residents of Denmark.

OWNERS

DEPOSITING SHARE CAPITAL

When starting a new ApS company, the required minimum capital of DKK 40,000 can be deposited in cash, or non-cash assets such as a car, inventory, etc. can be deposited with the company. Cash deposits are the quickest and easiest method. However, if non-cash assets are deposited, an auditor is required to verify their value, and the cost of this audit can be quite high (usually around DKK 5,000 - 15,000 + VAT). It may also be challenging to find an auditor willing to perform this type of audit. It is generally recommended to invest the required equity in cash, and if you have assets later that you want to deposit, you can simply sell them to the company and pay yourself from the equity, which is a simpler and more cost-effective solution.