The capital requirement for private limited companies has been halved from DKK 40,000 to DKK 20,000, and new private limited companies can now be founded with a share capital of DKK 20,000.
Existing private limited companies can also make capital reductions down to the new minimum limit of DKK 20,000 as long as they continue to meet the requirements of the Danish Companies Act for capital reductions.
The bill was adopted as part of the Entrepreneurship Package from June 2024 and aims to strengthen growth and innovation among Danish entrepreneurs.
The amendment came into force on January 1, 2025, and the final effective date was February 27, 2025, when the changes were implemented in the Danish Business Authority's IT system.
The change also provides better access to finance for private limited companies. It allows private limited companies to offer shares to the public through approved equity crowdfunding platforms. An option that has previously been reserved for limited liability companies.
At the same time, the amendment allows private limited companies to offer their own shares to so-called qualified investors without using a platform.
However, it is still not permitted to trade private limited companies' shares on regulated markets or multilateral trading facilities, and they are therefore unlisted shares.
At CO:PLAY, we welcome the change in the law, which improves financing opportunities for private limited companies and helps to promote entrepreneurship and economic activity.
