Formation of public limited companies

Possibility of partial payment of share capital

A public limited company is roughly similar to a private limited company, but is subject to even more detailed regulation by the Companies Act and the Annual Accounts Act, etc. The company must be registered with the Danish Business Authority and upon incorporation have a share capital of at least DKK 500,000. However, you can inject capital in instalments, but at incorporation at least 25% must be fully paid. The rules of liability are the same as for private limited companies. This means that shareholders are only liable for the injected capital (unlike sole proprietorships, where the owner is liable for all personal assets). For tax purposes, a public limited company is a separate legal entity taxed under corporate taxation legislation.

Requirements for the management and board

A public limited company must have a board comprising at least three members and an executive with at least one member. The names must be provided upon incorporation. Major decisions are usually taken at the Annual General Meeting or by the Board with a simple majority.
If there are several owners of the public limited company, you should enter into a shareholders’ agreement, which contains, for example, name, purpose, registered office, capital structure, the admission of new co-owners, sales and purchases, Board of Directors, executive management, auditors, etc.

Contact Vistas Revisor if you have questions in connection with the incorporation of a public limited company. I am always ready to advise you on company formation, taxation and accounting.