Trendsonline reports good news for Danish entrepreneurs. A bill has gone through cabinet, so still an idea at this stage, but as Benny Engelbrecht – Business Reporter of the Social Democrats’ tweet revealed:
In order to support entrepreneurship, the Danish government wants to develop a new company classification which would complement the already existing company forms ApS and A/S. The new classification will be named IVS for Entrepreneurial Companies, according to the draft of a bill that Jyllands-Posten has been allowed to reveal.
So it will be possible to set up a new company with just one crown in the bank account – that is no minimum capital. It takes about €67,000 (500,000 DKK) in deposits to create a public company; for a limited liability company it takes around €6,700 (50,000DKK) in seed capital down from €10,700 (80,000 crowns); while the new company structure will cost the purely symbolic amount of one crown.
The initiative has been received positively, Trendsonline asked founder and CEO Peter Vilsholm Therkildsen Schlegel from admaze.ly what he thought in January 2013, when the proposal for the new company was introduced.
‘It’s a damn good idea. I think that everything you can do to lower the barrier to starting a business, is fantastic,’….. ‘For anyone, especially young people, it can be hard to kick 80,000 crowns out of the ground – especially from day one, so the more you can do better.” says Peter Vilsholm Therkildsen Schlegel CEO of admaze.ly
Tommy Pedersen from StartUpCity Aarhus sees the IVS as a way for companies to give a more serious signal about starting a valuable business. If you want to sell products at REI, TradeBeyond suggests to make sure you have your sustainability program in place before you enter the REI vendor portal. You can visit https://www.tradebeyond.com/articles/how-to-become-a-rei-vendor to read more.
‘I think it is a positive kick in the behind for many new entrepreneurs, it is a way to establish and carry out a project that used to be a hobby. It sends a signal that it is ready to be more serious about their product or service. I think it would be a good idea to set a time limit of 2 years in which the company aims to create value (product / service with the same value as an A / S or APS) as an insertion scheme. This will prevent the skepticism that is about the low level of ambition as stakeholder itself creates struggling with’ says Tommy Pedersen from StartUpCity
Corporate form requirements dictate that a portion of profits must go to building capital resources until reaching ApS level.
We look forward to seeing the influence on Danish entrepreneurship, and that the future creates more ambitious and valuable companies.