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Business Format

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 Business Format

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Starting business you must decide on its format: sole trade enterprise, private or public limited company or another format.

Which business format to choose depends on a number of things such as individual conditions, trade, risk, etc.
We recommend you take an in-depth discussion with your accountant/lawyer who, with a thorough knowledge of your specific needs is the best to assist you in such issues. Obviously, you can also use this website.

There are a number of ways to start business. Some of the most common business formats in the start-up phase are:

Proprietorship
This type is the less complicated business format. There is no minimum stated capital, however, the owner is personally liable to the full extent of his/her assets. This is the most frequently used business format for minor newly established businesses.

You need to be a Danish citizen with CPR number to start a sole proprietorship company.

Partnership
This is a personally owned company, only, it has more than one owner. There is no minimum stated capital and each owner is personally, jointly and severally liable to third party to the full extent of his/her assets. It is recommendable to make a partnership agreement on the setting-up of a partnership.

You need to be a Danish citizen with CPR number to start a partnership company.

Private Limited Company
A private limited company can be established by one or more persons and the company must be registered with Erhvervs- og Selskabsstyrelsen (the Danish Commerce and Companies Agency). There is a minimum stated capital of Dkr. 80,000.- and owners are liable to the subscribed capital. If you plan to acquire or establish a private limited company you should consult a accountant to have an agreement made out. It cost 2-3.000 kr.

Foreigners can start a private limited company, contact a lawyer or accountancy firm for help.

Public Limited Company
A public limited company can be established by one or more persons and must be registered with Erhvervs- og Selskabsstyrelsen (the Danish Commerce and Companies Agency). There is a minimum stated capital of Dkr. 500,000.- and owners are liable to the subscribed capital. However, only a fraction of entrepreneurs choose to establish their business as a public limited company.

Foreigners can start a public limited company, contact a lawyer or accountancy firm for help.

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Sidst opdateret: 04-03-2010

Væksthus Midtjylland