Denmark at a glance
Default split
Equal among partners
Startup entity
Anpartsselskab (ApS)
Minimum capital
DKK 20,000 (~€2,700)
Community property
Yes
Formation cost
DKK 670 (~€90)
Key legislation
Selskabsloven (Danish Companies Act), Lov om erhvervsdrivende virksomheder
Denmark introduced the IVS (Iværksætterselskab) with just DKK 1 minimum capital in 2014, but abolished it in 2019. The ApS minimum capital was reduced to DKK 20,000 in January 2025. Danish companies can be registered digitally through Virk.dk. Denmark has a favorable tax regime for employee share options under the Ligningsloven §7P scheme. Copenhagen is a major Nordic startup hub.
Default partnership rules in Denmark
In a Danish I/S (Interessentskab, general partnership), profits are shared equally among partners by default. Partners are jointly and severally liable for partnership debts. The partnership must be registered if it operates commercially. A partnership agreement can override the default rules but is not legally required. Danish partnership law is based on customary rules and court practice rather than a single comprehensive statute.
The most important takeaway: profits are split equally by default in Denmark, regardless of capital contributions. If you and a partner start a business and one of you invests €100,000 while the other invests €5,000, you still split profits 50/50 without a written agreement. This default can be overridden by a partnership agreement.
Anpartsselskab (ApS) in Denmark
The ApS (Anpartsselskab) is the standard entity for Danish startups, similar to a German GmbH. Minimum share capital is DKK 20,000 (approximately €5,400). Registration costs DKK 670 through Virk.dk and can be completed in 24 hours. No notary is required. Shares can have different voting rights and transfer restrictions. The Selskabsloven (Companies Act) governs the relationship between shareholders. A shareholders' agreement (ejeraftale) is recommended for multi-founder companies.
Without a shareholders' agreement, the relationship between founders is governed by the country's default rules, which rarely account for the realities of a startup — where contributions change over time and early effort often goes uncompensated. An operating agreement or shareholders' agreement is essential. Use our equity calculator to determine a fair split based on actual contributions.
What happens when a partner leaves in Denmark
In an I/S partnership, a partner can withdraw with reasonable notice. Death or bankruptcy of a partner may dissolve the partnership unless the agreement provides otherwise. For ApS companies, shares are freely transferable unless the articles of association impose restrictions (which is common). Minority shareholders have limited statutory remedies; the Companies Act allows dissolution on grounds of oppression but sets a high threshold.
A written agreement should address departure terms specifically, including how the buyout value is calculated, the payment timeline, vesting schedules, and any non-compete provisions. Understanding the concept of dead equity is important for managing these situations. Learn more about how dead equity affects businesses.
Marriage and business equity in Denmark
Denmark uses formuefællesskab (community of property) as the default matrimonial regime. Assets acquired during the marriage, including business interests, are community property and divided equally on divorce. Assets owned before the marriage remain separate. A pre-nuptial agreement (ægtepagt) can exclude specific assets. The agreement must be registered in the Personbogen to be effective. Business owners should consider an ægtepagt to protect business equity from division on divorce.
Important for Denmark business owners: Denmark uses formuefællesskab (community of property). All assets acquired during the marriage are community property and divided equally on divorce. Business owners should consider a pre-nuptial or post-nuptial agreement to protect their equity interests.
Formation and cost details
| Main startup entity | Anpartsselskab (ApS) |
| Minimum capital | DKK 20,000 (~€2,700) |
| Formation cost | DKK 670 (~€90) |
| Default equity split | Based on share allocation at incorporation |
| Default partnership split | Equal among all partners |
| Community property | Yes |
| Key legislation | Selskabsloven (Danish Companies Act), Lov om erhvervsdrivende virksomheder |
Frequently asked questions
What is the minimum capital for a Danish ApS?
The minimum share capital for an ApS is DKK 20,000 (approximately €2,700), reduced from DKK 40,000 in January 2025. Denmark previously allowed IVS companies with just DKK 1 minimum capital, but this form was abolished in 2019. Registration costs DKK 670 and no notary is required.
What is the default profit split for a Danish partnership?
In a Danish I/S (general partnership), profits are split equally by default among all partners, regardless of capital contributions. Partners are jointly and severally liable for partnership debts. A partnership agreement can change the split.
Does divorce affect business ownership in Denmark?
Yes. Denmark uses community of property by default. Business interests acquired during the marriage are community property and divided equally on divorce. A pre-nuptial agreement (ægtepagt) registered in the Personbogen can protect business assets.
How quickly can I form a company in Denmark?
An ApS can be registered digitally through Virk.dk within 24 hours. The registration fee is DKK 670 and no notary is required. This makes Denmark one of the fastest jurisdictions for company formation in Europe.
Related resources
- Equity calculator: find a fair split for your business
- Does your small business need an equity agreement?
- Equity for small businesses: the complete guide
- Dead equity calculator: how much is yours costing you?
- Slicing Pie calculator
- What is an operating agreement?
- All 32 European countries: partnership and formation laws
- US state directory: partnership and LLC default rules
Partnership laws in neighboring countries
Disclaimer: This page provides general information about Denmark partnership and business formation laws and is not legal advice. Laws change, and the information here may not reflect the most recent amendments. The formation costs and capital requirements listed are approximate and may vary. Consult a qualified attorney licensed in Denmark for advice specific to your situation. Equity Matrix is a software tool for tracking contributions and calculating equity; it does not provide legal services.
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