Lower capital requirements for ApS from 2025
Good news for entrepreneurs and small businesses. From February 2025, the capital requirement for founding a private limited company (ApS) has been reduced from DKK 40,000 to DKK 20,000.
This means that if you plan to start or found an ApS, you can now do so with a smaller initial capital. At the same time, existing ApS's can choose to reduce their capital to DKK 20,000 if they meet certain conditions.
Important about capital reduction
- If you choose to reduce your capital and pay out the difference to the shareholders, you should be aware that this is generally taxed as a dividend.
- If the capital reduction and distribution in the company is commercially justified, permission can be obtained from the Danish Tax Agency for the amount paid out to be taxed according to the rules of the Capital Gains Tax Act rather than as dividends according to the Tax Assessment Act. However, this requires a separate application to the Danish Tax Agency and is relevant if the shareholder is a natural person.
- It is important to ensure that the company remains financially sound after a capital reduction.
What can we help you with?
- We can advise you on how the new rules regarding capital requirements affect your business.
- We can help with the process of capital reduction and ensure that everything is done correctly according to legislation.
- We can also help you apply for permission from the Danish Tax Agency in connection with a capital reduction.
More information
If you have any questions or need help, you are always welcome to contact inforevision.
Contact us
Kenny Madsen
Partner, State Authorized Public Accountant
T: 25 47 00 35
