Registration of ApS
To enroll in the creation of an ApS (limited liability company in Denmark), it is necessary to access Virk.dk. It is obligatory to finalize the enrollment process within two weeks of signing the establishment document. Furthermore, the company’s capital must be remitted before proceeding with the registration.
To register an ApS, certain documents such as the foundation document, articles of association, and owner's book must be submitted. It is important that these documents are in compliance with the Companies Act as the registration cannot be completed without them being in accordance with the law. The company's capital must also be paid before registration can be completed and the registration must be done no later than two weeks after the foundation document has been signed.
ApS as holding company
A holding company is a company structure designed to possess capital shares in another company. It is not an autonomous legal entity but rather a designation given to a company with the sole purpose of owning shares in another company. This structure typically comprises a holding company and an operating company.
Founding two companies at the same time can have the advantage of "rolling the capital", which means that the same DKK 20,000 can be used for deposits in both companies instead of having to pay 2 x DKK 20,000 for two separate companies.
To protect the assets of the operating company, a company structure consisting of a holding company and an operating company can be used. In this structure, the holding company owns capital shares in the operating company, and the assets of the operating company can be protected by preventing creditors from making claims against the holding company's assets in case the operating company goes bankrupt.
Cost of converting IVS into ApS
Converting an IVS (entrepreneurial company) to an ApS (Danish private limited company) requires several steps and the cost may vary depending on individual circumstances. As of 15 April 2021, all IVSs must either be re-registered as an ApS or be dissolved.
To convert an IVS to an ApS, you need to have a minimum capital requirement of DKK 20,000 and get an assessment report from a state-authorized accountant to confirm that your company meets the requirement. The cost of getting this report from the accountant needs to be considered as well and may vary based on your situation.
The cost of converting an IVS to an ApS depends on various factors, such as the amount of capital contributed, legal and accounting services required, and fees for professional advisers like lawyers. Therefore, the cost of re-registering an IVS as an ApS can vary significantly.