Differences between ApS and other legal forms

There are several different legal and organisational forms for companies in Denmark, one of the more popular of which is the ApS limited liability company (Anpartsselskab). In addition to the ApS company, other common forms include the stock corporation (A/S), the limited liability company (IVS), the limited liability partnership (K/S) and the single-member limited liability company (E/ApS).

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Differences between ApS and other legal and organisational forms in Denmark:
– Minimum share capital: For an ApS company, the minimum share capital is DKK 40,000, while for a public limited company (A/S) it is DKK 400,000.
– Number of partners: An ApS company may have at least one partner, whereas an A/S company must have at least three partners. A one-person E/ApS company, as the name suggests, can only have one owner.
– Registration process and associated costs: The registration process and formalities vary according to the legal form. The registration of an E/ApS company is less complicated and less expensive compared to a public limited company.
– Means of control and management: In a joint-stock company, shareholders’ shares are usually more easily transferable than shares in an ApS company, which may affect the ownership structure.
– Financial and capital resources: In a joint-stock company, it is usually possible to raise more capital by issuing shares on the stock exchange, which may be more difficult for an ApS company.

The choice of the appropriate legal and organizational form depends on the individual needs, business plans and preferences of the entrepreneur. It is always advisable to consult a professional or lawyer before making a decision. However, it is worth noting that the ApS company is a popular choice for entrepreneurs opening their companies in Denmark.

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