Starting a business in Denmark involves several key decisions, one of which is choosing the right business structure. A popular choice for entrepreneurs is creating an ApS (Anpartsselskab), a private limited company.
This structure offers several advantages, including limited liability, tax benefits, and the ability to scale with your business. However, after deciding to create an ApS, another crucial step is securing a professional company address, which plays an important role in the legitimacy and operation of your business.
What Is an ApS?
An ApS (Anpartsselskab) is a private limited company that separates the business’s liabilities from its owners. This means that as a shareholder, you are only liable for the company’s debts up to the amount of capital you’ve invested. The limited liability feature makes this structure highly attractive for entrepreneurs, offering a level of protection for your personal assets in case of business failure.
The Danish regulations for creating an ApS were made more accessible with a reduction in the capital requirement to DKK 20,000 starting in 2025, making it easier for new businesses to get started. The process involves several legal steps, from registering the company with the Danish Business Authority (Erhvervsstyrelsen) to ensuring that all necessary documents are in order.
If you are considering the creation of an ApS, it’s important to understand the steps involved and the advantages it offers. Not only does it protect your personal assets, but it also provides tax benefits, a professional image, and the ability to grow and scale your business with flexibility.
Steps to Create an ApS
Creating an ApS is relatively straightforward, but it requires attention to detail. Here are the main steps to follow:
Step 1: Choose a Company Name
The first step in creating your ApS is selecting a company name. The name must be unique and contain “ApS” at the end, as per Danish law. Additionally, you’ll need to ensure that the name is available for registration, which can be done through the Danish Business Authority’s website.
It’s also a good idea to check if the corresponding domain name is available for your website.
Step 2: Decide on Capital Structure
The capital required to create an ApS is now reduced to DKK 20,000. This capital must be deposited into a business bank account and serves as collateral for the company’s creditors. The capital acts as the financial base for the company’s operations and protects shareholders from personal liability.
In some cases, the capital requirement can be met through apport deposits (contributing assets like equipment or intellectual property instead of cash). This flexibility makes it easier for entrepreneurs to start their businesses with limited cash resources.
Step 3: Legal Documents and Registration
To officially establish your ApS, you need to prepare several legal documents:
- Articles of Association: This document outlines the company’s internal rules and governance structure, including the purpose of the company, share distribution, and management.
- Shareholder List: A list of all shareholders and their respective shares in the company.
- Capital Statement: Proof of the capital injection, which can be either cash or apport deposits.
Once the documents are ready, you need to submit them to the Danish Business Authority for registration. Upon approval, your company will receive a unique CVR number (company registration number), which is essential for tax and legal purposes.
Step 4: Set Up Your Company Operations
After registering your ApS, you can begin setting up the operations of your company. This includes opening a business bank account, choosing an accounting system, and registering for VAT if applicable (typically if your turnover exceeds DKK 50,000). You’ll also need to secure a company address, which is necessary for official correspondence and business registration.
The Importance of a Company Address
Your company address is vital for both legal and practical purposes. In Denmark, all businesses must have an official address that can be used for registering with the CVR, receiving mail, and communicating with customers, suppliers, and the authorities. For new businesses, especially startups, having a professional company address is essential for creating a strong first impression with clients and partners.
For entrepreneurs who do not need a physical office but still require a professional business address, a virtual company address can be an ideal solution.
Why Choose a Virtual Company Address?
A virtual company address allows businesses to operate with a professional business address without the high costs of renting or maintaining a physical office. This is especially beneficial for small businesses, startups, and freelancers who may not need an office space but want to maintain a credible and professional image.
Here are the main advantages of choosing a virtual company address:
1. Cost-Effectiveness
Renting a physical office in Denmark can be expensive, especially in busy business districts like Copenhagen. The costs of rent, utilities, and maintenance can quickly add up.
A virtual company address, however, can be significantly more affordable, with prices starting as low as DKK 188 per month. This cost-saving solution helps entrepreneurs allocate their limited resources to other areas of the business, such as marketing or product development.
2. Professional Image
A professional business address enhances the credibility of your ApS. Whether you’re operating from home or traveling, a prestigious company address makes your business appear more established and trustworthy. It signals to clients, investors, and business partners that you are serious about your business.
3. Privacy Protection
Using your home address for business purposes can expose your private details to the public, which could be a security concern. A virtual company address provides privacy, ensuring your personal address is not publicly available through business registries like CVR.
4. Flexibility and Mobility
A virtual company address allows you to work from anywhere—whether from home, a café, or while traveling—without compromising the professional image of your business. This is particularly important for entrepreneurs who work remotely or operate businesses with employees in different locations.
5. Access to Additional Services
Many virtual office providers offer additional services, such as mail forwarding, phone answering, and access to meeting rooms. These services allow businesses to operate efficiently without the need for a physical office, and they can be scaled as your business grows.
If you are looking to set up a virtual company address, you can easily do so by choosing a reputable provider that offers professional services at affordable prices. It’s essential to select a service that provides mail handling, access to meeting rooms when needed, and the flexibility to upgrade services as your business expands.
How to Choose the Right Virtual Company Address
When selecting a virtual company address for your ApS, there are several factors to consider:
1. Location
The location of your virtual company address should align with your brand and target market. A prestigious address in a central business district will give your business a competitive edge. For instance, if your customers are based in Copenhagen, it makes sense to choose an address within the city or a nearby area like Lyngby, which is known for its innovation and business-friendly environment.
2. Service Offerings
Virtual office services can vary significantly between providers. Some basic services include mail forwarding and a professional address, while more premium services may include call forwarding, mail scanning, and access to meeting rooms. Choose a provider that can offer the services you need now and provide flexibility for future requirements.
3. Price vs. Value
While it’s tempting to opt for the cheapest virtual office service, consider the value offered in return. Look for a provider that offers a comprehensive suite of services, reliable customer support, and the flexibility to scale services as your business grows.
4. Scalability
As your business grows, your needs may change. Select a provider that can scale with your business, offering additional services such as dedicated office space or meeting rooms as your business expands.
Conclusion
The creation of an ApS is a crucial step in establishing a business with limited liability and a professional structure. Along with the registration process, securing a virtual company address provides a cost-effective, flexible, and professional solution for entrepreneurs who wish to protect their privacy and enhance their business image.
By following the steps outlined in this guide and selecting the right virtual office provider, you can ensure that your ApS is set up for success from day one.
With a professional address and the flexibility to work from anywhere, you are well-positioned to grow your business in the competitive Danish market.
