This text refers to the Danish definition of the word “anpartsselskab”.
A limited liability company is a business type that can be established by one or more persons and / or companies. The founders of the company are called shareholders, their financial contributions to the company most often define the company’s division of shares. Therefore, be sure to draw up an ownership agreement.
Limited liability
If you want to establish a limited liability company, you must be aware that there is a capital requirement of at least DKK 40,000. However, the shareholder’s liability is limited to the DKK 40,000 that is a start-up capital requirement. In this way, if your company goes bankrupt, you ensure that your personal wealth is not affected. The capital requirement of the DKK 40,000 can be set as money, as values or a combination of these. If they are set as values or as a combination, the value must be assessed by an accountant.
Establishment and capital requirements
To set up an ApS there are some basic steps to follow. You must draw up articles of association that describe the company’s rules and framework, including the ownership structure and decision-making processes.
In addition, there is a requirement to have an executive board and that the company must be notified to the Danish Business Authority, which publishes the company’s accounts.
Ownership structure and management
In an ApS, the ownership structure can vary, and the shareholders can have different ownership shares depending on their investment. The ApS must have an executive board that takes care of day-to-day operations, and a board of directors that is responsible for overall strategic decisions.
Taxation and administration
The taxation of an ApS depends on the country’s tax legislation. Profits in the ApS are usually taxed at company level first, and when dividends are paid out to shareholders, they are taxed again as personal income. Therefore, it is important to understand the tax conditions in your area.
