Closing down a Danish ApS company in Denmark

A Danish entrepreneur who decides to close a Danish limited liability company (ApS) should first choose the appropriate procedure depending mainly on the company’s material condition. In Denmark, there are five important types of proceedings and closures, such as:

  1. Restructuring - to prevent bankruptcy proceedings from commencing, the company has the option of filing a restructuring petition with the court if it can restructure both its finances and operations, and the court will appoint a restructuring administrator to oversee the entire proceedings.
  2. Liquidation on the basis of a statement of shareholders - if the company is solvent, i.e. has fewer debts and more assets, it can be liquidated voluntarily, in which case it is required to publicly announce its decision, after which creditors have three months to file their claims. A liquidator, such as a lawyer, is appointed to handle the liquidation proceedings, and once the company is liquidated, its shareholders are protected from future claims.
  3. Bankruptcy - if the company is not solvent, bankruptcy proceedings will be initiated, which will lead to its closure.
  4. Voluntary liquidation - all debts of the company should be paid in order for the company to be voluntarily liquidated. The company's partners are required to sign a special declaration to pay the debts at the time of the company's closing, and thus will be held fully liable if, however, any debts remain or new debts arise. There should also be no claims or lawsuits at the time of the company's liquidation.
  1. Forced dissolution - in Denmark, the court has the right to order forced dissolution if the company has not filed its annual report by the deadline,the managing director resigns,the company is due for an audit and the auditor resigns without appointing a new one.In this case, the court will appoint a liquidator to review the company's financial situation. If the company is insolvent, it will be put into bankruptcy proceedings, and if it is solvent, it will be dissolved.
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