ApS company in Denmark (anpartsselskab) — how it works and what it costs
Published: 2026-07-24
Anpartsselskab (ApS) is the Danish private limited company — a separate legal entity in which the owners' liability is limited to the capital they contribute. Setting up an ApS requires share capital of at least DKK 20,000 and management (direktion), and the company keeps full accounts and files an annual report (årsrapport) with Erhvervsstyrelsen. In return, the owners' personal assets are, as a rule, separated from the company's obligations. Below we explain how an ApS works, the roles, taxes, costs and who it suits. If you are comparing an ApS with a sole proprietorship or looking for the full registration path, see our guides on starting a company in Denmark.
What is an ApS company (anpartsselskab)?
An ApS is a private limited company — a separate legal entity, distinct from its owners. The key feature is limited liability: as a rule, owners risk only the capital they contribute, not their entire personal assets. This is the main difference from an enkeltmandsvirksomhed.
The company is run by management (direktion); larger companies also have a board (bestyrelse), which in smaller ApS can be optional. Note that limited liability does not apply if an owner signs a personal guarantee for the company's obligations — banks often require this at the start. The former IVS form with token capital was abolished in 2019, and existing IVS were converted into ApS.
How much capital and which roles are needed?
An ApS requires share capital of at least DKK 20,000. This is not a registration fee: the money stays in the company and can be used for its operations. The capital must be paid in and confirmed at registration, which Erhvervsstyrelsen handles via the Virk portal.
In terms of roles, the company must have management (direktion); larger companies also have a board (bestyrelse). Registration needs Danish identifiers and access to digital services, and some roles may carry residency requirements. The rules are sometimes adjusted — confirm the current requirements before setting up.
How is an ApS taxed and what accounting obligations does it have?
An ApS is a separate taxpayer: it pays corporate income tax (selskabsskat) on its profit. When the company distributes profit to an owner as a dividend, that is taxed separately at the shareholder level. In practice this means two levels of taxation, whose amounts and rules depend on the situation — confirm the details with a Danish adviser. This guide is not tax advice.
An ApS has full accounting obligations and files an annual report (årsrapport) with Erhvervsstyrelsen, where it becomes public; how much is disclosed depends on the size class (regnskabsklasse). Smaller companies may, under certain conditions, opt out of an audit, but not out of reporting. On top of that come VAT (moms) and employer obligations if the company hires.
What does an ApS cost and who is it for?
The cost of an ApS consists of: DKK 20,000 of capital (which stays in the company), a registration fee, and ongoing costs — full accounting, a possible audit and running the company. This involves noticeably more formalities than an enkeltmandsvirksomhed, but in return you get limited liability and greater credibility with counterparties and banks.
An ApS suits you best when you plan to grow, want partners, plan to hire or operate in an area with higher financial risk. The table below summarises the main pros and cons. Specific rates and thresholds may change — treat it as orientation, not as tax advice.
| Aspect | Pro | Con |
|---|---|---|
| Liability | limited to company assets | gone if you sign a personal guarantee |
| Capital | stays in the company, for operations | must contribute min. DKK 20,000 |
| Credibility | greater with banks and counterparties | — |
| Administration and tax | — | full accounting, årsrapport, two levels of tax |
Frequently asked questions
- How much capital does an ApS need?
- At least DKK 20,000 of share capital. This is not a fee: the money stays in the company and can finance its operations. The former IVS form with token capital was abolished in 2019. A registration fee via Erhvervsstyrelsen is added separately.
- Does an ApS protect personal assets?
- As a rule yes — the owners' liability is limited to the company's assets, so they are not personally liable for its debts. The exception is when an owner signs a personal guarantee (banks often require this at the start) — then that protection does not apply to that extent.
- How is an ApS taxed?
- An ApS pays corporate income tax (selskabsskat) on its profit, and distributing profit to an owner (a dividend) is taxed separately at the shareholder level — that is, two levels of taxation. Rates and rules depend on the situation and change; confirm the details with a Danish adviser.
- Does an ApS need an audit (an auditor)?
- Not always. Smaller ApS companies may, under certain conditions (turnover, balance-sheet total and headcount thresholds), opt out of an audit. This does not exempt them from full accounting or from filing an annual report (årsrapport) with Erhvervsstyrelsen. Thresholds are sometimes adjusted — check the current figures.
- ApS or sole proprietorship — which to choose?
- An ApS is usually chosen with growth, partners, hiring or higher risk — because it limits liability but costs more and requires full accounting. A sole proprietorship (enkeltmandsvirksomhed) is simpler and cheaper to start but comes with full personal liability. We expand on the comparison and the full registration path in our guides on the sole proprietorship and on starting a company in Denmark.
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This guide is for information purposes only and does not constitute legal or tax advice. Laws and registry rules may change — the information held in the relevant country's official registers is always decisive.