Do you dream of owning your own business in Denmark, but don't want to jeopardize your home, car, savings or other private assets? 🏡
Limited Liability Company (ApS) is one of the safest forms of business for entrepreneurs in Denmark.
With ApS, your company acts as legal entity, and liability for any debts is limited only to the company's capital. This means that Your private finances are protected, even if the business plan fails.
In this article you will learn:
🔹 what exactly is ApS,
🔹 what benefits it provides,
🔹 how much capital you need,
🔹 and how to set up such a company step by step.
Before you make a decision, read what you should know about ApS - and start acting consciously🚀.
What is ApS in Denmark?
ApS is the abbreviation for limited liability companies (anpartsselskab). This is the so-called. A corporation, a form of business that has legal personality - it operates as an independent entity, separate from the owner's assets.
The debts of the ApS company are not your private debts.
This means that if the company goes into debt then the people or institutions to whom the company owes money cannot claim it from your personal assets - such as your car, house or savings.
In comparison - in the case of EMV sole proprietorships and PMV (Personligt Ejet Mindre Virksomhed), the owner bears full personal responsibility.
If the company fails to pay its obligations, creditors can go after all your personal assets.
👉 It is the protection of private property is one of the biggest advantages of choosing the ApS form.
⚠️ In practice, however, banks and other creditors may require you to provide what is known as a personal guarantee, especially at the beginning of your business, e.g. in the case of a loan or lease of a car or machinery.
To register ApS, you need at least 20,000 DKK share capital.
It does not have to be exclusively cash. Capital can be in the form of so-called "cash. contribution in kind (in-kind) - these can be, for example, machinery, equipment or warehouse inventory.
📝 However, in the case of an in-kind contribution, it is necessary to prepare a valuation report by an independent auditor, which generates additional costs that are borne by the owner.
Advantages and disadvantages of running ApS in Denmark
Running ApS has its pros and cons. It is worth knowing them before making a decision.
Advantages
✅ Limited liability - you are only liable with the capital of your company, not with private capital,
✅ This type of business enjoys a better reputation among customers, suppliers and investors,
✅ Possibility of having multiple owners both individuals and legal entities such as other companies,
✅ You pay corporate income tax on company profits 22% (which is more favorable than personal income tax),
✅ The capital requirements are DKK 20,000, it does not necessarily have to be cash, but can be other forms of assets, e.g. machinery, cars.
Disadvantages
❌ Initial capital required is at least DKK 20,000, additional registration fee DKK 670,
❌ Running an ApS involves more administrative work - compared to the a sole proprietorship of EMV and PMV (Personligt Ejet Mindre Virksomhed,- because it is subject to the provisions of the Business Corporations Act, for example, there is a legal requirement to prepare a public annual report (with possible audit responsibilities) which entails higher costs of running the company,
❌ required work accident insurance (arbejdsskadeforsikring).
What are the requirements for creating an ApS?
To establish an ApS in Denmark, you must meet the following requirements:
- Capital contribution: The minimum capital for ApS is DKK 20,000. This capital may consist of cash or assets that are estimated to be of equivalent value,
- Founders: There must be at least one founder. The founder can be an individual also not registered in Denmark or a legal entity (e.g., another company including a foreign company),
- Statute: A charter should be prepared describing the company's purpose, ownership structure, management, etc,
- Management: The company must have a board of directors consisting of at least one director (the equivalent of the Polish President of a limited liability company). The appointment of a supervisory board is not mandatory, but is recommended for larger companies,
How to set up an ApS in Denmark?
ApS through the Danish Business Activity Authority's online portal, Virk.dk. The process includes the following steps:
- Visit virk.dk and click „Start virksomhed”,
- Log in with MitID,
- Fill in information about the company, including its name, address, management and capital contribution,
- Include documents such as Articles of Incorporation and documentation of capital contributions,
- Pay the registration fee,
- Submit your application and wait for it to be processed by the Danish Business Authority.
Unlike a sole proprietorship, the establishment of an ApS company involves more paperwork and requires compliance with a number of legal requirements.
For foreign investors - from outside Denmark - setting up an ApS on your own is usually impossible without the support of local advisors.
If you are looking for a fast and safe establishment of ApS, a good solution will be to take the help of experienced advisors - accountants, lawyers or specialized accounting offices. Please visit
Who is responsible?
As the owner of a limited liability company, as a general rule, you are not privately liable for the company's debts in the event of bankruptcy. This means that as an owner, you do not risk having to pay any debts in the company from your personal assets.
If you are the owner of an ApS, your liability is limited, which means that you risk being liable only for what you have invested in the company, each individually. This is one of the reasons why limited liability companies are an attractive form of business.
What tax rules apply to an ApS company in Denmark?
When operating a limited liability company (ApS) in Denmark, keep in mind that it is subject to different tax rules than a sole proprietorship or PMV. As corporation, ApS is a separate legal entity, which means, among other things, the obligation to account for corporate income tax.
In Denmark, this tax is called selskabsskat and in 2025 is 22% On net profit.
Example (simplified):
If your ApS company made a profit in a given year of DKK 1,000,000, you will pay 22% tax, that is 220,000 DKK.
In comparison - if the same income was accounted for as personal income, for example, in the case of a one-person business, the tax rate could be as high as 37%, which would mean as much as 370,000 DKK tax (Not counting the so-called. topskat, or an additional tax on high incomes).
This shows that ApS can be much more tax-advantaged With higher profits.
Withdrawal of ApS funds and additional taxation
Of course, if you want to use the money accumulated in the company account, such as paying yourself a salary or dividend, you have to reckon with additional taxation at the level of the individual. That's why many ApS owners choose to leave a portion of their profits with the company - for reinvestment or business security, for example.
The choice of the form of payment and when it will be made, worth planning with the help of an accountant or tax advisor, to optimize overall tax costs.
Deductibility - fradrag
By running ApS, you can take advantage of many tax deductions, the so-called. fradrag, i.e. the possibility of reducing the tax base by the business expenses incurred.
Deductible expenses may include:
- employee salaries (including your own, if you are employed by ApS),
- office rent,
- hardware and software,
- consumables,
- Costs of accounting, marketing, internet, etc.
The condition is that each of these expenses must be directly related to the business of the company and must be well documented - Invoice, contract, bill.
Differences between ApS and other forms of business in Denmark
When you need to choose a form of business, there are many different factors to consider. Ultimately, the right form of business will always depend on your specific situation and needs.
To make it easier for you to choose, we've prepared an overview where you can quickly learn the similarities and differences between the four most popular business forms for self-employed people and entrepreneurs: PMV, sole proprietorship EMV, I/S and ApS.
| Criterion | PMV | EMV | Partnership (I/S) | Ltd. (ApS) |
|---|---|---|---|---|
| CVR number | ✔️ Yes | ✔️ Yes | ✔️ Yes | ✔️ Yes |
| number of owner? | one | one | many | many |
| Responsibilityć | Full asset liability - you are responsible for the company's obligations with all your assets. | Full asset liability - you are responsible for the company's obligations with all your assets. | Full asset liability - you are responsible for the company's obligations with all your assets. | Liability limited to the company's capital and any guarantees. |
| Obligation to file an annual financial report? | ❌ No | ❌ No | ❌ Partial - if at least one partner is an individual, there is no obligation to file a report | ✔️ Yes, visible to the public |
| Obligation of bookkeeping? | ✔️ Yes | ✔️ Yes | ✔️ Yes | ✔️ Yes |
| VAT registration obligation? | ❌ No | ✔️ Partial - if turnover exceeds DKK 50,000 in 12 months | ✔️ Partial - if turnover exceeds DKK 50,000 in 12 months | ✔️ Partial - if turnover exceeds DKK 50,000 in 12 months |
| A turnover limit? | Maximum of DKK 50,000 per calendar year | No limit | No limit | No limit |
| Can employees be hired? | ❌ No | ✔️ Yes | ✔️ Yes | ✔️ Yes |
| Is it possible to trade across borders in the EU? | ❌ No | ✔️ Yes | ✔️ Yes | ✔️ Yes |
| Initial capital required? | ❌ No | ❌ No | ❌ No | ✔️ Yes - minimum DKK 20,000 |
Now you have an in-depth understanding of the various advantages and disadvantages of ApS. If you think you need more information before evaluating whether this is the right form of business for you, you can find additional information below:
What form of business in Denmark will be best for you?
You are also welcome to contact us if you have any doubts about the choice of company form We will be happy to advise you in the right direction, so that you can be sure to choose the company form that best suits your individual situation.
Not sure where to start? Need more information or advice?
📞 Call us: +45 35 13 13 10 (Mon-Fri, 8:00am-6:00pm)
📧 Write: helpy@your-adviser.dk
