New bill will make the Danish company law the most modern in the world.

“If the political system will pass the bill we will have the most modern company law in Europe perhaps in the entire world," says Professor Jesper Lau Hansen from the University of Copenhagen to Børsen Business Daily. He is a member of a committee which is to modernise the company law.

The bill is expected to be finalised before the end of 2008 and if the politicians select to pass the bill for a new joint company law for both private limited companies and limited companies it will put the company’s needs first, reduce considerably the number of administrative burdens and bring the Danish legislation into the European super league, says the Chairman of the Committee Alf Duch-Pedersen.

“It will be the best company law in the world because it puts the company first - and because it allows the possibility of certain flexibility for the fair and square operation of the company,” says Duch-Pedersen to Børsen.

One specific proposal in the new law is removal of the capital requirement of DKK 125,000 (EUR 17,000) for private limited companies (ApS). The capital requirement has prevented many entrepreneurs from establishing a business and on the other hand it is not really important to creditors whose company goes bankrupt.

Other proposals are for example the possibility of establishing a private company on the Internet 24 hours a day and to use standard articles of association that will make it possible to establish a company without legal advice.