(This blog was updated: 13.8.2021)
Incorporating a new limited liability company in Denmark (ApS)
The ApS is a specific type of limited liability company in Denmark.
As the owner of an ApS, you are not personally liable for the debts and obligations of the company.
Watch our video here and learn more:
Incorporating a new ApS
A new ApS is incorporated at the Danish Business Authority (“Erhvervsstyrelsen”).
In order to incorporate a new ApS, you need to deposit a minimum of 40.000 DKK in share capital.
We can assist you with the incorporation of your new ApS.
You can spend the deposited share capital for company costs
The share capital deposited into the new ApS belongs to the ApS and not the owners.
The owners can spend the equity capital to pay for company costs, salaries and dividends.
Do not borrow money from the company if you are the owner
It is not advisable to borrow money from the company if you are the owner.
Even though it is technically not illegal, you will be taxed very aggressively.
An ApS can have one or multiple directors.
Owners can be directors.
Directors can be residents or non-residents of Denmark.
An ApS can have one or multiple owners.
Directors can be owners.
Owners can be residents or non-residents of Denmark.
Depositing the initial share capital
When incorporating a new ApS, you can either deposit the minimum required capital of 40.000 DKK in cash, or you can make a non-cash deposit by depositing assets into the company. Depositing cash is by far the easiest and quickest method of deposit, but you can also deposit assets like a car, goods, inventory, etc.
The non-cash deposit process is more complicated and expensive. First, you’ll need an auditor to audit the value of all the items, you’d like to deposit into the company as equity capital. The auditor then makes a valuation of the total value of the non-cash deposit. The auditor fee for this work is an additional cost when incorporating the business, and it can be quite expensive. Often the auditor’s fee for this work is 5.000 – 15.000 DKK + VAT. Also, it can be hard to find an auditor, who is willing to make this type of audit. Depending on the type of assets you have. Therefore we always recommend depositing the required equity capital in cash. Then if you have some assets later, that you want to deposit in the company, then you simply sell these to the company and pay yourself from the equity capital. This is the easiest and cheapest. Not to mention the fastest way.
Are you still not sure what company structure is best for you?
In this video, we will give you some inspiration to choose the right company structure.
Typically, the decision stands between either a limited liability company in the form of an ApS or a sole proprietorship: