The discontinued entrepreneurial company (IVS), read here what alternatives it leaves
On April 9, 2019, the Danish Parliament decided to discontinue the entrepreneurial company (IVS). This means that as of April 15, 2019, you can no longer create entrepreneurial companies. It also means that existing entrepreneurial companies must be converted (re-registered) within a period of 2 years – i.e. before April 15, 2021. Read more about re-registering entrepreneurial companies in our post: Re-registration of entrepreneurial companies. If this doesn’t happen, you risk your entrepreneurial company being sent for compulsory dissolution.
The reason for the company variant was originally to relax the conditions for entrepreneurs’ start-ups so that it would be possible for entrepreneurs to start with a low initial capital and then build up as the given entrepreneurial project progressed. As the company variant has now been abolished, this has obviously limited the opportunities for entrepreneurs to do this.
Alternatives to the abolished entrepreneurial company (IVS)
Anpartsselskabet (ApS)
The capital requirement for private limited companies (ApS) has been reduced. This means that you can now establish a private limited company with just DKK 40,000 in cash contributions. Contributions in kind, i.e. where deposits are made with values other than cash, can continue to be made. The same minimum requirements apply here, but this must be seen in relation to the valuation of the respective assets.
Foreign company with Danish branch
Many other European countries still have a company variant that is similar to the entrepreneurial company. This applies to Germany and England, among others.
Another alternative is therefore to establish a foreign company and set up a Danish branch. It sounds difficult, but the fact is that it is not. However, the process is slightly more extensive than with the entrepreneurial company.
If you miss the legal conditions that the entrepreneurial company gave entrepreneurs and self-employed people the opportunity for, this solution is therefore an excellent alternative.
Raadgiver.dk can assist you throughout the process – from idea to founder of a foreign company with a Danish branch.
Contact a specialist
If you have questions about the abolition of the entrepreneurial company and the alternative options, you are more than welcome to contact us.
