Important changes for business foundations in Denmark
The Danish government has passed a new law that changes the rules for business foundations. A business foundation is an organization that operates a business and distributes its profits for a specific purpose. These changes make some requirements easier and adjust how the administration works.
Who is affected?
If you own or manage a business foundation, or if you are starting one, this law affects you. The changes also apply to auditors and people who want to become real estate agents.
What is changing?
Simpler processing: Instead of the Ministry of Business handling approvals, the Business Authority (Erhvervsstyrelsen) now does. This means faster and more consistent handling of applications.
New founder rules: From now on, you must prove that money was actually paid into the foundation when you register it. A founder is the person or organization that starts the foundation.
Better records: Foundations that have been removed from the register must now be clearly marked so everyone can see their status.
Oversight body is shut down: The Auditor Board, which previously supervised auditors, is being eliminated. This means less bureaucracy.
Bankruptcy information made public: If someone has been under a bankruptcy ban (a temporary prohibition on running a business after bankruptcy), this information will now be easily accessible to the public.
What should you do?
If you run a business foundation:
• Check that all your documents are in order, especially proof that capital was deposited correctly
• Learn about the new procedures at the Business Authority
• Contact an advisor if you are unsure how these changes affect your foundation
Important note: This article explains what the law says. For important decisions about your foundation, we recommend speaking with a lawyer or accountant who specializes in business foundations.
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