The Danish parliament has passed a bill with a number of changes to Danish company law. It has done this in the hope that this will simplify administrative procedures for companies and make it easier to do business in Denmark.

One important component is the introduction of an Entrepreneur company known as an IVS, this will have a minimum share capital of 1DKK which equates to just 15 cents when compared to the euro. This share capital has to be increased to 50,000DKK which equates to 7,000EUR before any dividends can be declared. This increase must be through normal business operations. Once it reaches this share capital it can be converted to an ApS, which is the Danish form of a Limited Liability Company. The IVS operates under all the same rules that apply for the ApS.

An ApS at the moment has to have a minimum share capital of 80,000DKK which equates to 11,000EUR. Under the same proposals this will be reduced to 50,000DKK approximately 7,000EUR.
The SmbA is another type of limited liability company in Denmark. It is quite popular as it has no minimum paid up share capital and no accounting requirements, providing the turnover is below a certain limit. It does not have legislation though and is a red flag for tax authorities and so under the new proposals you will not be able to incorporate an SmbA after the 1st January 2014.

They are also introducing rules that will allow for the re-domiciliation to or from another EU state. It should be noted however that this is dependent on whether the country to which the company is being domiciled to has adequate laws for Danish workers.

Some of the more welcomed changes are;
– Plans to reduce the corporate income tax rate from 25% to 22% over a three year period.
– Possible audit exemption for holding companies providing that they are considered ‘small’.