IVS is a mini ApS

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 40,000 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 40,000 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.

Register an IVS

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 get our help for only 2.300 Dkr. all incl.

Advantages of an IVS

The following are advantages to start a business as an IVS rather than starting as a sole proprietorship company:

  • Small deposits to form a limited company
  • You are not liable with your personal fortune if you accidentally build a large debt in the company
  • Two or more persons who want to start together find a better framework than a Partnership
  • It is easier to invite new partners in a company

Disadvantages of Entrepreneurship Society

The following disadvantages of starting a business as IVS rather than starting out as a sole proprietorship:

  • There are extra accounting requirements and financial statements must be published in public
  • There can be no dividend to be paid before having accumulated 40,000 Dkr. in capital
  • You can as a personally not borrow money from the company
  • A deficit in IVS cannot be deducted from your personal or spouse´s taxable income
  • Customers may require you provide greater safety when purchasing goods when you are just an IVS

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