On 5 November 2024, the Ministry of Business and Industry submitted Bill L 71, which is intended to make it easier to do business in Denmark. The proposal is based on the Agreement on the Entrepreneurship Package, concluded by a broad political majority on 21 June 2024, and has two central goals: to lower the capital requirement for private limited companies and to introduce new opportunities for crowdfunding.
Reduced capital requirement for private limited companies
One of the most important elements of the bill is the reduction of the minimum share capital requirement for private limited companies (ApS) from DKK 40,000 to DKK 20,000. This change is intended to make it more accessible to establish companies in Denmark, especially for smaller companies and entrepreneurs.
The main points of the change:
Private limited companies can be established with a share capital of just DKK 20,000.
The capital can be paid in cash or by depositing other assets, such as machinery or equipment, which together constitute the minimum capital.
Existing private limited companies will be able to reduce their share capital in accordance with the Danish Companies Act’s rules on capital reduction.
The Ministry of Business and Industry assesses that this initiative will lower the barriers for entrepreneurs who have previously had difficulty meeting the higher capital requirement. The change is intended to create a more flexible and inclusive company structure.
Equity crowdfunding for private limited companies
Another important change in the bill is the possibility of equity crowdfunding for private limited companies, which has previously been limited to limited liability companies.
Equity crowdfunding allows companies to raise capital by offering ownership shares to the public via digital platforms. With the bill, it will now be possible for private limited companies to:
Offer ownership shares to the public through crowdfunding platforms.
Take advantage of existing rules on exemption from the prospectus requirement, which makes the process more flexible and accessible.
The change gives startups and smaller companies an alternative way to raise capital, while expanding investment opportunities for private individuals.
Entry into force and future prospects
The bill is scheduled to enter into force on 1 January 2025. With these changes, the government wants to strengthen the framework for entrepreneurship in Denmark and create a dynamic business climate that promotes growth and innovation.
This bill marks another step towards positioning Denmark as a global frontrunner in entrepreneurship and alternative forms of financing.
If you have questions about the new rules or need help establishing your ApS, we are ready to help you proceed safely and quickly.
