Company formation in Denmark is usually a procedure that is mainly differentiated by the type of company that is established. Many foreign investors come to set up a company in Denmark, but their first concern is to choose the type of business that suits his objectives and then register it with the Danish Commerce and Companies Agency.
We invite you to watch a video on the pricipal business entities in Denmark:
A private limited company can be set up in Denmark by at least one shareholder regardless of his residency. The minimum share capital for setting up a private limited company in Denmark is 80,000 DKK and this amount is divided into shares. These shares are not negotiable, nor transferrable. The shareholders of this company are liable only to the extent of their own contribution.
At least one founder is required for setting up a public limited company with the condition to provide a minimum share capital of 500,000 DKK. Shareholders are not liable for the company’s obligations. This type of company also provides shares for its members, but they can be offered to the general public as opposed to the private limited company in Denmark.
It is necessary for at least two members to agree upon setting up a partnership. They can be either individuals or legal entities, with full liability for the company’s obligations. As a matter of fact, this is the main characteristic of a general partnership. It is mandatory for a general partnership in Denmark to be registered with the Danish trade register.
A limited partnership in Denmark has its similarities and its differences with a general partnership. At least two partners need to sign an agreement in order to set up a limited partnership and they can be individuals or legal entities. The characteristic of this type of business is that at least one partner is general and at least one is limited, with limited liability to the extent of his own contribution. Registration with the Danish trade register is also compulsory.
An individual who wants to set up a company in Denmark on his own is called a sole proprietor. The single member has full liability on the company’s obligations and has the obligation to register with the tax authorities if the activity performed deals with trading or if the proprietorship has employees.