Conversion of a business
Last updated 26/08/2025 – Reading time: 2 min
Business transformation means that you change your business form – typically from a personally owned business (sole proprietorship or partnership) to a limited liability company (ApS).
A tax-free conversion can be beneficial if you want more flexibility, less personal risk and the possibility of multiple owners.
Requirements for tax-free conversion
If you want to convert your business, you need to fulfill a number of requirements before the conversion can be completed:
- The company's capital must be at least DKK 40,000.
- Creditors must accept the conversion.
- An auditor's statement with assurance must be prepared.
It’s important that you don’t just close your sole proprietorship and open a company with the same activity.
If you do this without the correct process, you’ll have to pay tax on the value of the business. SKAT has a fixed calculation model for this.
Advantages of converting to an ApS
Many people choose to change their business form for both tax and financial reasons. The most common benefits are:
- You are not personally liable for the company's debts.
- You get more flexibility when it comes to payroll and taxes.
- You can have multiple owners with different ownership shares.
A conversion can therefore be a natural next step as your business grows or when you want to separate your personal finances from your business.
Get help with business transformation
A tax-free conversion can be an advantageous solution, but it requires proper handling of all formalities. At Accountview, we help you through the entire process from assessment to registration to avoid mistakes and ensure that the conversion is tax-free.