Anpartsselskab

Anpartsselskab, abbreviated ApS, is a Danish private limited liability company. It is a distinct legal entity whose shareholders’ liability is limited to their contributed share capital. The capital is divided into shares owned by one or more individuals or legal entities, and the shares are typically not offered to the public. Transfers of shares are often restricted by the company’s articles of association.

ApS is commonly chosen by small and medium-sized enterprises because it generally requires a lower minimum share capital and imposes fewer regulatory requirements than a public company. The company is usually governed by a management structure defined in its articles of association, often including a board of directors and, in many cases, a managing director or CEO.

Formation and compliance involve registration with the Danish Business Authority (Erhvervsstyrelsen) and entry into the Central Business Register (CVR). The company must have a registered address and a unique name. Annual accounts must be prepared and filed; depending on size, external audits may be required.

Tax and financial reporting follow Danish corporate practices. An ApS is taxed as a corporation under Danish tax law; profits and potential dividends are subject to corporate taxation, with any distributions to shareholders handled according to applicable laws and individual circumstances.

Compared with an Aktieselskab (A/S), the ApS is private and not intended for public trading of shares, with typically lower capital requirements and regulatory burdens. An A/S is used for larger ventures or those seeking public investment and a broader capital base.