Limited liability company in denmark - ApS

Anpartsselskab (ApS) is a Danish limited liability company that must be registered with Erhvervsstyrelsen (the Business Activity Authority) via the website eogs.dk.

What is worth knowing about ApS?

1. Limited Liability Company in Denmark (ApS) is governed by the Law on Private Limited Liability Companies and the Tax Law.
2. The owner of ApS is not liable for the company's debts and liabilities, if any.
3. The minimum share capital needed to establish ApS is DKK 20,000 (the paid-up capital will be owned by the company, not by the owner, who may, however, use it to pay company expenses, dividends, distributions).
4. Instead of cash, you can deposit assets in the company, such as a car, but this is more time-consuming and costly, as it requires hiring a chartered accountant (cost with VAT of DKK 5,000 to 15,000), who will estimate the value of the items and do a total valuation of the value of the non-cash deposit, so it is better to deposit cash, and then you can deposit assets for which the company owner will pay himself out of his own capital.
5. The company has a legal personality and is an ideal form for running a family business, as the owner can have absolute custody of the company.
6. Danish LLC (ApS) requires incorporation documents (stiftelsesdokument) and articles of incorporation (vedtægter).
7. The owner of the company should not borrow money from the company, as this can be highly taxed.

In the case of Anpartsselskab, there can be both only one and multiple owners, who may or may not be Danish residents. Importantly, an owner can also be a director of the company and vice versa - a director of the company can be an owner and may or may not be a Danish resident.