Denmark introduces easier financing and lower capital requirements
New legislation makes it easier for Danish private limited companies of the type “anpartsselskab” to attract investors and lowers the capital requirements.
On January 1, 2025, new rules were introduced to the Danish Companies Act simplifying the process for private limited companies of the type “anpartsselskab” to attract investors and to launch operations with reduced capital requirements.
Equity crowdfunding opens new doors
One of the most significant changes is that private limited companies now have the option to offer shares to the public under certain conditions. Previously, this option was reserved for public limited companies of the type “aktieselskab”.
As a result, private limited companies can now secure financing through approved equity crowdfunding platforms, providing better opportunities to reach a broader audience of potential investors. Additionally, companies can choose to offer shares directly to so-called “qualified investors” without using a crowdfunding platform.
Lower capital requirements
Previously, private limited companies of the type “anpartsselskab” were required to have a minimum capital of DKK 40,000. This requirement has now been cut in half to DKK 20,000.
This makes company formation more affordable for new companies. At the same time, existing companies can now reduce their capital to the new minimum threshold, provided they maintain a sound level of financial preparedness.
IUNO’s opinion
At IUNO, we welcome the new rules, which we see as a crucial step toward promoting innovation and entrepreneurship in Denmark.
[Act on Amendment of the Companies Act - Act No. 1667 of 12/30/2024]
On January 1, 2025, new rules were introduced to the Danish Companies Act simplifying the process for private limited companies of the type “anpartsselskab” to attract investors and to launch operations with reduced capital requirements.
Equity crowdfunding opens new doors
One of the most significant changes is that private limited companies now have the option to offer shares to the public under certain conditions. Previously, this option was reserved for public limited companies of the type “aktieselskab”.
As a result, private limited companies can now secure financing through approved equity crowdfunding platforms, providing better opportunities to reach a broader audience of potential investors. Additionally, companies can choose to offer shares directly to so-called “qualified investors” without using a crowdfunding platform.
Lower capital requirements
Previously, private limited companies of the type “anpartsselskab” were required to have a minimum capital of DKK 40,000. This requirement has now been cut in half to DKK 20,000.
This makes company formation more affordable for new companies. At the same time, existing companies can now reduce their capital to the new minimum threshold, provided they maintain a sound level of financial preparedness.
IUNO’s opinion
At IUNO, we welcome the new rules, which we see as a crucial step toward promoting innovation and entrepreneurship in Denmark.
[Act on Amendment of the Companies Act - Act No. 1667 of 12/30/2024]