Danish Company Law Revolution: How Hans-Christian Ohrt is Shaping the Future

As Denmark witnesses a transformative era in its legislative landscape, particularly in the realm of company law, the legal acumen of Hans-Christian Ohrt becomes increasingly relevant.

Mr. Ohrt, noted for his extensive expertise in corporate law, joins Global Law Experts at a crucial juncture when businesses must navigate newly enacted laws that significantly enhance corporate governance and operational flexibility.

In 2024 and extending into 2025, Denmark has implemented substantial amendments to the Danish Companies Act. Among the most impactful changes is the reduction of the minimum share capital requirement for private limited companies, from DKK 40,000 to DKK 20,000. This adjustment not only aligns Denmark with broader European standards but is anticipated to lower the barriers for entrepreneurs and burgeoning startups seeking to establish their presence in the marketplace. The broader economic implications of such a shift will undoubtedly stimulate growth and innovation.

With respect to shareholder loans, a pivotal area of Ohrt’s focus, the legislative reforms become even more pronounced. Beginning January 1, 2025, Denmark will repeal stringent statutory requirements governing shareholder loans, thereby granting firms greater latitude to extend loans to shareholders and management without being bound by previous corporate law restrictions, which included mandatory general meeting approvals. However, this newfound flexibility comes accompanied by an enduring responsibility for management to uphold capital protection obligations under the Companies Act. It will be imperative for corporate leaders to ensure that their lending practices do not undermine corporate interests or disadvantage fellow shareholders, thereby safeguarding the integrity of the company’s financial structure.

New avenues for capital raising are also unfolding for private limited companies, as revised regulations now permit limited public offerings, including equity crowdfunding initiatives that comply with the EU Crowdfunding Regulation. This modification is pivotal for smaller enterprises striving to diversify their capital sources, facilitating access to financing that transcends traditional private equity and bank funding avenues. With a landscape increasingly accommodating of innovative funding models, the role of seasoned legal counsel becomes indispensable in guiding companies through the complexities associated with equity crowdfunding, ensuring compliance with all applicable regulatory frameworks.

Furthermore, significant reform in the area of corporate taxation and compliance took effect with the introduction of new transfer pricing regulations in 2025. The government has established a de minimis threshold that exempts companies with controlled transactions below DKK 5 million from the obligation to submit transfer pricing documentation. This legislation also raised documentation thresholds concerning balance sheet totals and revenue, particularly benefiting small and medium-sized enterprises by alleviating compliance challenges and minimizing administrative burdens. However, it is essential to note that the new exemption does not apply to transactions with related parties involving intangible assets, nor to transactions with related parties domiciled in a foreign country that does not exchange tax information with Denmark.

The confluence of these legislative changes signals Denmark’s commitment to modernizing its company law framework, enhancing compliance ease, and increasing capital accessibility. As these dynamics unfold, the expertise of Hans-Christian Ohrt stands as a critical asset for clients navigating this evolving corporate landscape. His insights will aid in leveraging the lowered capital requirements, effectively employing new financing mechanisms including equity crowdfunding, prudently managing shareholder loan dynamics under the revised legislative provisions, and adapting to shifting requirements regarding transfer pricing documentation.

Amid this backdrop of evolving regulations, it is crucial for businesses to remain vigilant concerning potential risks. Companies must ensure that shareholder loan arrangements comply meticulously with capital preservation requirements and that they maintain obligated documentation for transfer pricing. The exacting demands of this new legal environment necessitate informed strategic advice.

Hans-Christian Ohrt’s integration into Global Law Experts arrives during a transformative period in Danish company law—offering clients not only legal expertise but also strategic foresight in an increasingly fluid corporate climate. His capacity to navigate the complexities of company formation, capital acquisition, intra-group financing, and tax compliance will undoubtedly provide invaluable support to clients as they adapt to these significant legislative developments.

As Denmark stands on the brink of a revamped corporate governance framework, Mr. Ohrt’s proficiency in advising clients will invariably assist them in translating regulatory changes into actionable business strategies, thereby positioning themselves competitively within both national and global markets. In this period of rapid evolution, the role of legal experts like Hans-Christian Ohrt becomes essential as businesses seek to leverage new opportunities while effectively mitigating risks inherent in a shifting legislative landscape.