Amendments to the Danish Companies Act adopted

The amendments imply that the initial capital contribution on formation of a Danish private limited company (an ApS) is reduced from DKK 80,000 to DKK 50,000. At the same time, the Danish Parliament introduces a new corporate form, the so-called entrepreneurial company (an IVK), which makes it possible to form a limited liability company with an initial capital contribution of DKK 1 which is convertible into an ApS when the company had built up a capital of DKK 50,000. Moreover, it becomes easier for companies to move their registered offices to another EU/EEA member state.

The Act comes into force gradually as the necessary adaptations to the IT system of the Danish Business Authority are in place. The rules on the entrepreneurial company and the reduction of the capital requirement for ApS-companies will probably come into force at the end of 2013.

Read the newsletter "More flexibility in Danish company law".