The choice of company form is one of the most important decisions you make as an entrepreneur or business owner. It affects liability, capital requirements, tax, governance, the ability to raise capital and how banks, partners and authorities perceive the business. At KGN Services we help you choose the right form and carry out the formation correctly from the very first step.
Below is an overview of the most common Danish company forms. For each one, you can click through to a detailed page with formalities, capital requirements, governance and practical considerations.
Private limited company (ApS)
A private limited company (anpartsselskab, ApS) is the most common company form for SMEs in Denmark. It requires a share capital of at least DKK 20,000, which can be contributed in cash or in kind. The owners (shareholders) are in principle only liable up to the contributed capital, providing a clear separation between personal and business finances.
An ApS is typically the right choice when you:
- want to run a business with limited personal liability,
- need a simple and flexible ownership structure,
- want a professional framework without the stricter requirements that apply to an A/S.
Formation includes drafting the memorandum and articles of association, paying in the share capital and digital registration with the Danish Business Authority. We assist with the entire process and advise on shareholders' agreements, signing rules and any holding structure.
Read more about forming a private limited company (ApS) →
Public limited company (A/S)
A public limited company is the most formal and capital-intensive company form, with a minimum share capital of DKK 400,000. It is typically used when there are several independent investors, plans for larger capital raises, or when banks, partners or authorities require an A/S structure. The A/S has a two-tier governance with a board and executive management, and is subject to stricter requirements on annual report, general meeting and board work.
Read more about forming a public limited company (A/S) →
Limited partnership (K/S)
A limited partnership combines elements of capital and personal companies. The general partner is personally and unlimitedly liable (in practice often an ApS or A/S), while the limited partners are only liable up to their contribution. The form is typically used for real-estate and investment projects where investors want limited liability combined with tax transparency.
Read more about forming a limited partnership (K/S) →
General partnership (I/S)
A general partnership is a cooperation between two or more individuals or companies. The partners are personally, unlimitedly and jointly liable for the partnership's obligations. The form is flexible and suited to close partnerships where all participants are active in operations, but requires a thoroughly drafted partnership agreement.
Read more about forming a general partnership (I/S) →
Sole proprietorship
A sole proprietorship is the simplest form of self-employment. There is no capital requirement, but the owner is personally and unlimitedly liable. It suits start-ups at a smaller scale and can later be converted into an ApS as the business grows.
Read more about starting a sole proprietorship →
Other company and cooperation forms
- Holding company: a separate ApS or A/S that owns shares in an operating company. Used for tax optimisation, protection of accumulated capital and succession planning.
- Partnership limited by shares (P/S): a combination of A/S and K/S, with both share capital and a general partner. Used in certain professional services, among other areas.
- Cooperative society (A.m.b.a.): a member-owned company with limited liability — typically used in agriculture, utilities and parts of retail.
- Association and foundation: independent legal entities with specific purposes and governance rules.
- Branch of a foreign company: a registered division of a foreign company carrying on business in Denmark.
Our assistance with company formation
Regardless of which form suits your situation best, our assistance typically includes:
- advice on choice of company form based on your commercial, tax and legal needs,
- drafting the memorandum, articles of association and any shareholders' or partnership agreement,
- payment and documentation of share capital in cooperation with bank and auditor,
- digital registration with the Danish Business Authority and registration of beneficial owners,
- advice on governance structure, signing rule and any holding arrangement,
- follow-up advice on banking, VAT, tax and insurance in the start-up phase.
The aim is to give you a robust, scalable structure from the start — so you avoid costly restructurings later and can concentrate on running and developing your business.