background image
1.1.1. Main Forms of Doing Business

Danish law provides for a number of business forms for investors, including:

  • Public Limited Company
  • Private Limited Company
  • Partnership
  • Branch

Public Limited Company

Public limited companies in Denmark provide the protection of limited liability for their shareholders, and shares may be offered publicly.

Key aspects of a Public Limited Company include:

  • May be formed by a single shareholder
  • Shareholders may be natural persons or legal entities
  • 100% foreign ownership is allowed
  • Shareholder liability is limited to their contribution for shares in the company
  • Requires a minimum nominal share capital of DKK 500,000, 25% of which must be paid up prior to registration
  • Capital may be in the form of cash or other assets
  • Shares may be offered to the public
  • If the company employs more than 35 persons, the employees are entitled to be represented on the board of directors or on the supervisory board

Private Limited Company

Private limited companies in Denmark provide the protection of limited liability for their shareholders, and are generally subject to lower requirements than public limited companies.

Key aspects of a Private Limited Company include:

  • May be formed by a single shareholder, with no set maximum
  • Shareholders may be natural persons or legal entities
  • 100% foreign ownership is allowed
  • Shareholder liability is limited to their contribution for shares in the company
  • Minimum capital is DKK 80,000, which must paid in full prior to registration
  • Shares may not be offered to the public
  • A board of directors is not required unless the company employs more than 35 persons, in which case the employees are entitled to be represented on the board

Partnerships

Partnerships in Denmark may be formed as general or limited.

Key aspects of a General Partnership include:

  • Formed by a partnership agreement with a minimum of 2 partners
  • Partners may be natural persons or legal entities
  • All partners are fully liable for the obligations of the
  • partnership
  • The partnership must be registered with the Danish trade register

Key aspects of a Limited Partnership include:

  • Formed by a partnership agreement with at least 1 general partner and 1 limited partner
  • Partners may be natural persons or legal entities
  • General partners are fully liable for the obligations of the partnership, while limited partner's liability is limited to their contribution to the partnership
  • The partnership must be registered with the Danish trade register

Branch

Foreign limited companies are allowed to carry out activities in Denmark through a branch.

Key aspects of a branch include:

  • A branch in Denmark acts under Danish law
  • A branch manager must be appointed
  • The name of a branch must show its nationality and its status as a branch of a foreign limited company
  • A branch must be registered with the Danish Commerce and Companies Agency, and it must be certified that the foreign company is registered in accordance with the legislation of its home country
  • An annual report of the foreign parent must be filed with the Danish Commerce and Companies Agency and is made publicly available

Further information on the general investment, tax and regulatory regime about the country is available at the following external references: