ApS as an independent legal entity

A Danish limited liability company, known as anpartsselskab (ApS), is treated as an independent legal entity. This means that an ApS company has the legal capacity to act on its own behalf, which includes the ability to acquire rights and incur obligations, similar to that of an individual.

One of the key advantages of this legal form is that it allows the company to conduct transactions, enter into contracts and own assets independently of its owners. This separates the personal finances of shareholders from those of the company, which in turn limits their personal liability for the company's debts and obligations to the amount of capital contributed.

In addition, doing business through a structure such as ApS can offer significant tax advantages. One example is the potential for savings due to the lower taxation of company income compared to the taxation of individual income. In practice, this means that purchases made by a company, investments or other financial operations can be more tax advantageous than the same activities carried out as an individual.

By treating ApS as an independent legal entity, more efficient tax planning and optimization of business costs is also possible. Companies can use different accounting and tax strategies to maximize their profits while minimizing their tax burden.