On this page, you will find information about the area of corporate law. As a business owner, entrepreneur or business leader, there are several different considerations that you should make when you want to set up a company.
Are you considering setting up a company or business? Then you must make some initial considerations about your choice of company and business form before you start.
What is a sole proprietorship?
A sole proprietorship has many names and abbreviations, but two unique features of this type of business are that it has only one owner and that it is “transparent”. As such, as the company’s sole owner, you will be personally liable for the company, but in the event of a loss, you may be able to deduct the said loss from your taxes.
What is an ApS?
An ApS can have one or more owners and is a limited liability company. As such, the owners are not liable for the company, with the exception of losses incurred through gross negligence. To establish an ApS, at least DKK 40,000.00 must be deposited with the company.
What is an A / S?
Like an ApS, an A/S is a limited liability company and can have one or more owners. When establishing an A/S, a minimum capital of DKK 400,000.00 is required. Of these, DKK 100,000.00 must be deposited with the company immediately and the remaining DKK 300,000.00 shall then be payable on demand by the company’s central management with a notice of no more than 4 weeks.
What is a partnership?
A partnership is also abbreviated I/S and is very reminiscent of a sole proprietorship in that it is “transparent” and thus, that the owners are liable for the partnership. However, by its nature, a partnership must have more than one owner. A significant advantage of choosing this form of company is, among other things, that no deposit is required.
What is a holding company?
A holding company is a limited liability company that owns other companies but has no business operations of its own. A holding company can be used to secure the values in your operating company, i.e. by paying dividends from the operating company to the holding company, so that you do not lose everything, should your operating company go bankrupt.
It is essential that you carefully consider the company’s or companies’ organization, management, capital ratios, etc. It is imperative to get these things in place and carefully weighed with the specific purpose of your company or business. You can find more information about this in the green box on the left.
Shareholders’ agreement/partnership agreement
One of the most important things when setting up a company is a shareholders’ agreement. A shareholders’ agreement will set the framework for joint ownership of the company. If, on the other hand, you have a partnership, then you should consider a partnership agreement. There are many things you should consider in an agreement governing the joint ownership of any business. As examples, we we can mention the following:
- The capital base of the company
- Mandatory marital separate property provisions
- Dispute resolution
Competent legal advice
At Advokatgruppen, we have several skilled lawyers who specialize in company law. We are ready to advise you when you need to set up your company, hold your shareholders’ meeting or divide your company. Contact us today – we are prepared to help you.