Easy. As a startup you need to have a cool DKK125,000 (USD20,000) upfront in cash as share capital to be honoured with the ApS label and DKK500,000 (DKK81,000) to be an A/S. Btw. A/S is pronounced “Ahh. Ess.” and not “Ass”, you would be suprised the amount of foreigners who make that mistake.
There are also lots of other annoying paperwork and rules and regulations and what have you. But the above upfront capital requirement makes it inaccessible for most bootstrappers.
This disease seems to be widespread across Europe. Austria has an up-front capital requirement of €37500 for a GmbH (the equivalent of an A/S or limited liability company), I think Germany requires €10000 in capital, etc. And the governments are surprised at the small number of startups. Sorry, a partnership just doesn't cut it.
The idea behind it is that since you are not personally liable in a limited company there should be some minimum amount of capital always present in the company, so that potential creditors can get their money. As a potential creditor you know that in maximise Aps. there is at least DKkr. 125.000 and in maximise A/S there is always DKkr. 500.000. This amount doesn't have to be in liquid assets but can take the form of tangible assets too, meaning that any accountant worth his money will be able to value your PC and you office chair at DKkr. 125.000 and you have your reserve for an Aps.
This, by the way, also works if you want to start a limited company - get a registered accountant to value your PC. and office chair at DKkr. 125.000 an you're good to go. Downside of this approach is that you will be income taxed for the 125.000.
Should you even start a business in Denmark?
Why don’t I just start with the conclusion. The honest and maybe controversial to some Danes answer is: Only if you really, really have to!
The sad thing is, that it's entirely true. Being from Denmark, I wish the environment for startups was better, and the rules were simpler.
I find that the biggest problems are that it is hard to find ambitious people, and that the general level of start-up knowledge is pretty low. Also the recognition you get from wanting to change the world is pretty non-existent.
That said the programmers and the girls are worldclass :-)
Maybe we should get together and do something about it?
Easy. As a startup you need to have a cool DKK125,000 (USD20,000) upfront in cash as share capital to be honoured with the ApS label and DKK500,000 (DKK81,000) to be an A/S. Btw. A/S is pronounced “Ahh. Ess.” and not “Ass”, you would be suprised the amount of foreigners who make that mistake.
There are also lots of other annoying paperwork and rules and regulations and what have you. But the above upfront capital requirement makes it inaccessible for most bootstrappers.
This disease seems to be widespread across Europe. Austria has an up-front capital requirement of €37500 for a GmbH (the equivalent of an A/S or limited liability company), I think Germany requires €10000 in capital, etc. And the governments are surprised at the small number of startups. Sorry, a partnership just doesn't cut it.