Important changes to the Companies Act: What does it mean for your business?

The Danish Parliament has adopted a number of changes to the Danish Companies Act that came into force on January 1, 2025.

These changes are of particular importance to small and medium-sized businesses and include:

Repeal of the rules on shareholder loans:

Companies can now legally provide loans to shareholders and management. However, it is important to note that the tax rules have not changed. Loans from the company to controlling shareholders are still considered non-refundable withdrawals and are taxed as either salary or dividends.

It is important to note that although the rules on shareholder loans in the Companies Act have been repealed, the general principles of the Companies Act still apply. The management must ensure that the company's finances are healthy and that the capital resources are sound at all times. In addition, management must not make decisions that give certain shareholders an unfair advantage at the expense of other shareholders or the company as a whole.

Reduction of the minimum capital in private limited companies (ApS)

The minimum capital has been reduced from DKK 40,000 to DKK 20,000, making it easier to establish an ApS. Existing private limited companies can also reduce their capital to the new minimum limit as long as they meet the requirements of the Companies Act for capital reductions.

Opportunity for equity crowdfunding in private limited companies

Limited liability companies can now raise capital via equity crowdfunding, providing better access to funding in the early stages of a business. The offering of shares can be done through approved crowdfunding platforms or, under certain conditions, through the company's own website.

Do you need advice?

At BUUS JENSEN, we have many years of experience in advising on corporate structuring and capital matters. We are ready to help you navigate the new rules and find the best solution for your business.

Contact us today for a no-obligation conversation - we are ready to help you further!