Company forms

Are you considering starting a company or business?

Before you, as an entrepreneur, start a business, you must make some initial considerations about choosing a company or company form.

It is, of course, essential that the company’s or business’ organization, management, capital, etc., are carefully weighed with the specific purpose that the company or business has.

You can find basic information about the most common company forms on this page.

Choice of company form:

Sole proprietorships are simple in construction and require no capital contribution. There are tax disadvantages as well as advantages. But the tremendous significance probably lies in the personal liability that comes with a sole proprietorship.

Partnerships, or I/S, are easy and quick to set up. They are not subject to company law. The taxation lies with the individual stakeholders, who are jointly liable, personally, and directly. This makes it a risky form of company, which still has some advantages. There are similar company forms, namely partner companies. They cost more to set up, but in return, they give you many other benefits. You will also be able to get rid of personal liability.

Private limited companies, or ApS, are established with a capital contribution of DKK 40,000.00. This is the most widely used form of company in Denmark. Among other things, there are many advantages to liability and responsibility that make it attractive as a company form.

Limited companies, or A/S, require a more considerable initial capital. It is also a requirement that an A/S must have a board of directors and an executive board. Like with an ApS, in a limited company, you are also protected against personal liability. Due to the large deposit of DKK 400,000.00, you often get a share of the benefits that large companies enjoy, with trust from the outside world. There are many advantages in an A/S – such as the easy access to capital via the sale of shares. But some legal resources must be used in the founding phase.

Do you need help?

At Advokatgruppen, we have several skilled lawyers specialized in company law. We have many years of experience advising on starting a business and choosing company forms. Contact us today – we are happy to assess your company structure.