The Share Capital in Denmark
The Share Capital in DenmarkUpdated on Tuesday 24th January 2023
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Foreign and local entrepreneurs who want to open companies in Denmark must take into account various factors. They must first calculate the amount they want to invest in the business. Then they must select the best type of structure which suits their needs and start the registration process.
From a financial point of view, investors should not worry about spending too much money on the registration of the company, as Denmark is one of the most flexible countries when it comes to the fees related to start a business. However, they must consider the minimum share capital requirements for certain types of companies.
Our lawyers in Denmark can explain what the share capital and legal requirements are when setting up a business in this country.
What are the share capital requirements for Danish companies?
One must first know that the share capital is the minimum amount of money which must be secured in a bank account when opening a company in Denmark. However, not all types of companies need a minimum share capital when registered in Denmark. The best examples are the sole proprietorship and the partnerships. Even if there are no share capital requisites for these types of business forms, the entrepreneur should consider a minimum investment which will be used entirely for the running of the company.
In the case of private and public limited companies in Denmark, the Commercial Code provides for the following share capital requirements:
- the private company needs a minimum share capital of 50,000 DKK (approximately 7,000 euros), out of which 25% must be deposited upon the registration of the company;
- the public company needs a minimum capital of 500,000 DKK (close to 70,000 euros); 25% of the amount must be deposited when the company is registered.
You can rely on our law firm in Denmark if you want to open a company here.
The share capital according to the new Danish Commercial Law
A few years back, Denmark amended its Commercial Code which also provides for a few changes related to the share capital of companies. One of these changes refers to the possibility of registering a new type of company – the entrepreneurial company – which will have a minimum share capital of 1 DKK.
It is also important to know that the share capital of a Danish company must be denominated in Danish krone or euro.
For full information on the share capital requirements when opening a company, please contact our Danish lawyers.
Companies in Denmark are expected to not only observe the general company formation steps, but to also abide by current tax reporting and payment regulations, as per the relevant laws and acts that govern these requirements. Our team will help investors with accounting services that also include bookkeeping, payroll or tax payments. Contact our Danish accountants for more details.