B: Company forms

Company forms

As mentioned under the legal basis for freight transport, you can run your business in various forms. You can start your own company at www.virk.dk, but if you want to start another company then personally owned business, you should get help from your accountant. The different forms of business each have their different advantages and disadvantages.

The most common forms of business are:

Personally, owned business

If you start a one-mand business, it means that you as a person own the business. This is a simple form of business where there is no requirement for capital. However, you must still provide a guarantee for the permits to the Danish Road Traffic Authority. As an owner, you are personally liable for everything you own. Yor are therefore not protected against losses in the company, but in return you do not have to publish your accounts.

Partnership (I/S)

Partnership operates as a personally owned business simply with multiple owners. The owners are each personally and jointly and severally liable for the debt in the company. Liability personally and jointly and severally means that creditors can claim any debt from each owner for the partnership’s total debt. Subsequently, the owner who pays the creditors must then try to get the other partner to pay his share of the paid debt.

Limited liability business (ApS)

A limited liability business (ApS) can be founded by one or more persons and the company must be notified to the Danish Business Authority. There is a minimum capital requirement at DKK 40.000, and you are liable for the invested capital. The company’s accounts are published by the Danish Business Authority.

Joint share business (A/S)

Joint share business can be founded by one or more persons and the company must be notified to the Danish Business Authority. There is a capital requirement om minimum DKK 400.000, but otherwise the rules are very similar to the rules for limited liability business. However, there may be several accounting obligations depending on the size of the company’s revenue. There may also be a requirement for a board of directors.

Limited liability Cooperatives (A.M.B.A)

A limited liability cooperation is defined as a business that fulfills the cooperative purpose. It is also a condition that none of the participants is personally liable, without limitation and solidarity. The cooperative must have several participants and there must be the possibility of varying numbers of participants.

Limited partnership business (K/S)

A limited partnership is a form of company in which one part of the participants is personally liable, while another part is liable to a limited extent. A limited partnership always consists of at least two people. It is a requirement that at least one of the participants in the company must be personally liable and thus liable for the entire company’s debt. This person is called the complementary. The other participants in this form of business are only liable for the amount they have each contributed. That is, they have limited liability. These participants are called limited partners.