Reduction of capital requirement for private limited companies has come into effect

Reduction of capital requirement for private limited companies

As outlined in our previous newsletter from 20 December 2024, the Parliament (Folketinget) adopted an amendment to the Danish Companies Act on 19 December 2024 reducing the capital requirement for private limited companies from DKK 40,000 to DKK 20,000.

The introduction of the reduced capital requirement required an adjustment of the Danish Business Authority's  (DBA) IT system used for registrations. Consequently, the reduced capital requirement was set to come into effect following the necessary adjustments of the DBA's IT system. These adjustments have now been made and the Minister for Industry, Business and Financial Affairs has issued an executive order whereby the reduced capital requirement comes into effect from 27 February 2025.

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If you have any questions, please contact Plesner's Corporate Law team.