What is ApS?

ApS (Danish private limited company) refers to a type of company that is widely used in Denmark and is known as a limited liability company. This popularity can be attributed to the fact that the owners of an ApS are not personally responsible for any debts incurred by the company due to their limited liability status.

Chapter 3 of the Companies Act outlines regulations regarding the establishment of an ApS (Danish Ltd), including requirements for contributions to the company and necessary documentation. This Act is a legal framework that applies to all capital companies in Denmark, encompassing both private limited companies (ApS) and public limited companies (A/S). Failure to comply with this legislation can have significant repercussions for a company’s future.

What does ApS stand for?
ApS stands for "anpartsselskab" - a type of limited liability company. A limited liability company is a general term for companies that receive financial contributions, in the form of cash or assets, at the time of incorporation. This means that capital is invested in the company when it is founded.

One crucial aspect of capital companies is that their owners are not held personally responsible for any debts that the company incurs.

What is the cost associated with starting an ApS?
As previously stated, a minimum contribution of DKK 20,000 is required to establish the company. Additionally, there is a mandatory registration fee of DKK 670 for registering the private limited company with the Danish Business Authority. These expenses must be paid to commence an ApS. However, the total cost of starting a private limited company can vary and may depend on several other factors.

Assistance from a legal professional:
If you require assistance from a lawyer for the preparation of legal documents related to an ApS, you will need to factor in the lawyer's fee for their services. A lawyer can aid in the creation of legal documents and provide guidance on the process.

Use of document generators:
Online document generators are available for creating legal documents, and the associated costs may differ from those charged by a lawyer. However, it's important to note that using online document generators typically does not provide the benefit of receiving professional advice. Additionally, most generators produce standard documents that may not cater to specific individual circumstances. Therefore, it's essential to understand the features and limitations of a document generator before utilizing it.

DIY approach:
Alternatively, you may opt to prepare these documents independently, without the aid of a lawyer or online document generator. If you possess knowledge regarding the necessary legal documents required for establishing a private limited company, you can forgo the fees charged by lawyers or online document generators and create the documents yourself.

Once again, it's crucial to determine whether you require professional guidance regarding the legal documents as this option doesn't provide advice in the event of any queries regarding one or more of the documents. If you opt to prepare the documents yourself and they prove to be incomplete or incorrect, you'll be held accountable for any financial consequences that may arise.

Capital approval requirement:
It's important to note that the capital contribution must be approved before establishing a private limited company. Only accountants or lawyers are authorized to approve the capital, and this implies that the cost of capital approval must be considered as part of the expenses associated with setting up a private limited company. Typically, the cost of capital approval can amount up to €4,000.

Thorough consideration of options:
Due to the numerous possibilities for establishing a Danish Anpartsselskab (ApS), it is recommended to carefully examine all available options and choose the one that best aligns with your circumstances.

Requirements for establishing an ApS:
The conditions for setting up an ApS vary depending on whether the founder is a natural person or a legal entity. A natural person is someone who has not structured themselves as a company and is considered the opposite of a legal entity. In contrast, a legal entity is a legal construct that can assume various forms such as a company, association, or institution.

Establishing a company as a legal person:
A company undergoing voluntary liquidation may be qualified to establish a new company as a legal entity. However, it is important to note that a sole proprietorship cannot create a company since it is not considered a legal entity.