When starting the company you can choose to organize it as a sole
proprietorship company or a Private limited company.
In a sole proprietorship company you as a person are liable for a possible loss in the company.
If you have formed a limited company you are only liable for the money and value you have put into the limited company.
IVS is short for Iværksætterselskab (entrepreneurial limited company) and ApS is short for Anpartsselskab (Private limited company) and these abbreviations are often used in the Danish business environment.
Entrepreneurial Limited Company is introduced to make it cheaper for entrepreneurs to create a limited company and thereby protect one´s personal fortune. IVS´et works much like an ApS and IVS must also over time develop into a ApS with a capital of 50,000 Dkr.
The share capital is built up by saving at least 25 percent of the annual profit of the company - until the total equity amounts to 50,000 Dkr. and entrepreneurial limited company a limited liability company.
A IVS should be seen as an alternative to a ApS, not to a sole proprietorship company.
You can register an entrepreneurial limited company on virk.dk website.
However, it is more complicated than setting up a sole proprietorship.
Among other things, you must have a business account in a bank where at least one crown is inserted and prepare a couple of other business documents
You can buy help from an accountant or lawyer to do this work for 2-3.500 Dkr.
The following are advantages to start a business as an IVS rather than starting as a sole proprietorship company:
The following disadvantages of starting a business as IVS rather than starting out as a sole proprietorship:
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