Types of Danish companies

Danish companies are registered with the Danish Commerce and Companies Agency, in a process that requires minimum administrative procedures. Entrepreneurs may chose from various types of business types, suitable for their needs. As in most European countries, the most common types used are the limited companies.

Incorporation of Danish Private Limited Company (Anpartsselskab – ApS)
One or more members may found a Private Limited Company in Denmark, without a defined maximum limit and there is no restriction concerning the founders’ residence. Also the director does not have to be Danish. A private limited company must provide a minimum capital fund of 80,000 DKK (Danish Krones, the currency of Denmark). The partners of the company contribute to the capital with shares that are issued a nominal value. The shares are not negotiable, and cannot be transferred. The private limited company must hold full accounting and its members are held liable to the company’s debts, only to the extent of their contribution.

Incorporation of Danish Public Limited Company or stock corporation (Aktieselskab – A/S)
A Public Limited Liability Company in Denmark can be established by one or more founders that may, or may not be Danish. The members of this company are not liable for he company’s debts. Unlike the private limited company, the public limited company must provide a minimum capital of DKK 500.000, and its shares can be offered to the general public. The company has a legal status and must be registered to the Danish Commerce and Companies Agency.

Incorporation of Danish General Partnership (Interessentskab – I/S)
The general partnership is set by at least two members, individuals, or companies, who are the general partners. They are fully liable to the company’s obligations to the extent of their own personal assets. The partnership functions on the basis of an agreement which regulates the structure, roles, and rights of the partners. A Danish general partnership must be registered with the Danish Commerce and Companies Agency.

Incorporation of Danish Limited Partnership (Kommanditselskab – K/S)
The limited partnership functions also on the basis of a partnership agreement, and can be founded by two ore more members who can be individuals or legal entities. The main difference between the two types of partnerships is that in a limited partnership at least one member has to be a general partner, who has full liability, and at least one member has to be a limited partner, having a liability limited to the extent of his or her contribution to the partnership’s capital. As well as the general partnership, a limited partnership must be registered with the Danish Commerce and Companies Agency.

Incorporation of Danish Sole Proprietor
Every person can engage in business activity in Denmark, and a sole proprietor is an individual who performs business on his own account. In this case the single member of the business entity is fully liable to the company’s debts and has to register with tax authorities if he, or she, has employees, or is involved in trade activities.