ApS stands for limited liability company. A limited liability company is a capital company and has the advantage that, among other things, you as the owner are only liable up to the amount of the company’s share capital. This is known as limited liability, which protects ApS owners from excessive business risk.
What is ApS?
In practice, limited liability means that in the event of financial problems, potential creditors can only seize the company’s capital (a minimum of DKK 40,000 when setting up ApS), and not your personal assets.
This is safer than a sole proprietorship, where the owner is fully liable for the company’s obligations with their personal assets.
The process of registering a company with Radner is as follows:

a. Customer application
b. Filling out the form and sending it back to us with the necessary documents
c. Payment of share capital by the customer into a temporary bank account
d. Preparation of documents for registration by Radner
e. Signing of the documents by the client
f. Registration of the company
g. Return of share capital to the company’s account

Registration time ranges from 1-4 weeks, usually it takes about 2 weeks.

When setting up a company in Denmark, you will receive all the necessary documentation from Radner. This will include:

Company agreement (Stiftelsesdokument)
This document contains general information about the formation of the company. It shows who the owners are and how the company’s capital (shares in the company) is divided among the owners, if there are several. It also states who will be on the company’s board of directors (directors and possible board of directors) and from what date the company will operate.

Articles of Incorporation (Vedtægter)
This document describes the company’s framework and its operation. It includes a description of the object of the business, the fiscal year and information on how the company’s owners can make decisions regarding the company.

Register of owners (Ejerbog)
This is a legal record of the shares held in a company, who owns them and when they were taken and possibly transferred.

Advantages of an ApS company

There are several important advantages why at a certain level of business development it is worth setting up an ApS. Initially, we always recommend running the company as a sole proprietorship to test the market. We recommend setting up a partnership for companies that have already been in the market for a while and are confident about the further path of their development.

Limited liability

The most important advantage of ApS is that it provides owners with limited liability to the company’s obligations. This means that, as an owner, you only risk the money you have decided to contribute to the company in the form of share capital.

Advantages of multiple ownership

If you are planning to expand further and are thinking of having your company with a new investor or co-owner in the future, the shares can be easily transferred to other individuals or entities. Likewise, it is also simpler to sell the entire company, which is impossible with a sole proprietorship.

Independent legal entity

A limited liability company becomes an independent legal entity, which can also be an advantage in terms of paying lower corporate income tax.

Flexibility in structure

There are many opportunities to create different structures through holding companies, subsidiaries, branches, etc. Real estate and other investments can also be purchased for the company.

A well-known company form

ApS is the most commonly used company form in Denmark, so it is more trusted by customers, suppliers and partners. In some situations, it is even required to compete in tenders or apply for funding from public money.

Easier to raise capital

When capital needs to be raised for a business – in the form of a loan or investment – it is usually easier with an ApS company. This is because the business owner’s assets are not connected to the company, and the bank only evaluates how the company is performing in the market.

Establish a limited liability company quickly and easily with Radner. We’ll complete the paperwork and you’ll receive the company’s CVR number, so you can legally operate your business in Denmark.