Company formation

In Denmark, the formation of both private companies (ApS type companies) and public companies (A/S type companies) is primarily regulated by the Danish Private Companies Act (lov om anpartsselskaber) and the Danish Public Companies Act (lov om aktieselskaber), respectively.

These acts outline the formation requirements, the rights, and the obligations of the company (be it a public or private company).

Denmark has, however, adopted a companies act. The new act entered into force on 1 March 2010, but the process will be stepwise. Certain parts of the act require trimming and the development of the Danish Commerce and Companies Agency's IT systems. So if you are planning to set up a business in Denmark, we strongly advise that you contact us.

Foreign companies domiciled in any EU member state may conduct business in Denmarkthrough a branch. Non-EU companies may also utilise the branch form where an international agreement provides for this, or where a permit is granted by the Ministry of Economic and Business Affairs.

The choice as to which company form to utilise (be it an ApS or an A/S or, alternatively, a European Company (SE) or branch) lies entirely with the promoters of the company.

The increased need for stakeholder protection in public companies means that the requirements for public companies are generally more stringent than those for privatecompanies.

Company formation
1. Governance structure in a Danish limited company
2. Formation of a Danish company
3. Company documents
4. Financial obligations
5. Management

The basic rules and requirements imposed on Danish A/S and ApS companies are summarised here.

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