One of the most frequently asked questions among new entrepreneurs is:
Can you set up an ApS without capital?
The short answer is no. A private limited company (ApS) still requires capital at incorporation.
That said, you don’t necessarily need to have the full amount in cash in your personal account. There are several legal ways to meet the capital requirement, and some of them can significantly reduce your need for cash.
In this guide, we’ll go through the 2026 rules, different financing options, and the solutions that can make it easier to start a business.
What is the capital requirement for an ApS in 2026?
From 27 February 2025, the capital requirement for an ApS was reduced from DKK 40,000 to DKK 20,000.
This means that in 2026 you generally need to provide:
- A minimum of DKK 20,000 in share capital
- The capital must belong to the company after incorporation
- The capital must be documented upon registration
- The capital serves as security for creditors
The rules apply regardless of industry and business type.
Why is there a capital requirement?
The purpose of the capital requirement is to ensure that the company has a financial foundation from day one.
Among other things, the capital is intended to cover:
- Start-up costs
- Operating the business
- Paying suppliers
- Other necessary expenses
At the same time, the capital requirement provides the outside world with a certain level of assurance that the company has the financial resources to operate.
Can you set up an ApS without cash?
Even though you can’t set up an ApS entirely without capital, in some cases you can use assets other than money.
This solution is called a non-cash contribution.
With a non-cash contribution, you transfer assets to the company instead of paying in the full capital amount in cash.
1. Non-cash contribution – use business assets as capital
A non-cash contribution means you contribute assets that already have a documentable value.
This can be relevant if you own equipment or other assets the business needs.
What can be used as a non-cash contribution:
Examples of assets that can often be used:
- Computers
- Servers and IT equipment
- Machinery
- Production equipment
- Tools
- Inventory
- Vehicles
- Patents
- Trademarks
- Customer databases
- Other business assets
Example
If you own:
- Computer equipment worth DKK 15,000
- Cash of DKK 5,000
these can be combined to meet the capital requirement of DKK 20,000.
This way, your need for cash capital is reduced.
2. Mixed contribution
Many entrepreneurs choose a combination of cash and assets.
This model is often called a mixed contribution.
Advantages of the model:
- Less need for cash
- Greater flexibility
- Preserves liquidity for operations
- Makes it possible to use existing equipment
At the same time, the company meets the capital requirement legally.
3. Financing the share capital
If you don’t have the capital available, you can explore financing options.
Possible solutions
Bank loan
Some banks offer loans for company formation.
Advantages:
- Quick access to capital
- Clear terms
Disadvantages:
- Credit assessment required
- Often requires personal liability
Loan from family or friends
Many entrepreneurs start with help from their network.
Advantages:
- Flexible terms
- Often low or no interest
Disadvantages:
- Risk of conflicts
- Should always be documented in writing
Investors
An investor can contribute capital in exchange for an ownership stake.
Advantages:
- Provides capital
- Can add experience and a network
Disadvantages:
- You give up part of the ownership
- Decisions often need to be made jointly
Rules for non-cash contributions
Non-cash contributions are subject to special rules.
That’s why you should always ensure proper documentation.
Valuation
The assets must be valued realistically.
Typically required:
- Independent valuation
- Documentation of the value
- Description of the assets
The value must not be overstated.
If the authorities assess that the value has been set too high, the registration may be rejected.
Documentation
With a non-cash contribution, you normally need to prepare:
- Description of the assets
- Valuation report
- Transfer documents
- Any insurance documentation
The better the documentation, the easier the process will be.
Registration with the Danish Business Authority
When a non-cash contribution is used, registration requires additional documentation.
This often means:
- Longer processing time
- More documentation requirements
- Higher costs
In many cases, the process takes longer than with a standard cash contribution.
Advantages and disadvantages of non-cash contributions
Advantages
✅ Less need for cash
✅ Make use of existing assets
✅ Preserves the company’s liquidity
✅ Can make it easier to get started
Disadvantages
❌ More administration
❌ More documentation requirements
❌ Often higher advisor costs
❌ Risk of rejection due to incorrect valuation
Other ways to raise capital
If you’re short on start-up capital, there are several options.
Crowdfunding
Crowdfunding makes it possible to raise capital from many smaller investors.
Types of crowdfunding:
- Reward-based crowdfunding
- Equity crowdfunding
- Loan-based crowdfunding
Public support schemes
Some entrepreneurs can obtain support through:
- Municipal business programmes
- Regional growth initiatives
- EU support schemes
- Vækstfonden
The options vary depending on the industry and the project.
Bank financing
In addition to traditional business loans, there are also, for example:
- Start-up loans
- Microloans
- Overdraft facilities
This may be relevant if you expect revenue shortly after starting up.
How to reduce your capital needs when starting up
Many businesses spend unnecessarily large amounts of money at the beginning.
By keeping costs down, your capital will go further.
Start simple
Consider:
- Working from home
- Using a virtual office
- Choosing cloud solutions
- Outsourcing specialist tasks
Make use of what you already have
Many people already own resources that can be used in the business.
Examples:
- Computer equipment
- Network and contacts
- Experience and skills
- Software licences
Plan your cash flow
Cash flow is often more important than revenue.
Make sure to:
- Create budgets
- Track cash flow
- Invoice quickly
- Negotiate good payment terms
When does a non-cash contribution make sense?
A non-cash contribution is often relevant if:
- You own valuable equipment
- You want to preserve liquidity
- You already have assets the business needs
A cash contribution is often best if:
- You want fast registration
- You have the capital available
- You want to avoid extra documentation
Tax considerations
Tax rules can vary depending on the situation.
With a non-cash contribution
There may be considerations related to:
- VAT
- Depreciation
- Transfer of assets
That’s why you should always consult an accountant or lawyer.
With a cash contribution
A standard capital contribution usually does not have any special tax consequences.
On the other hand, the bookkeeping is often simpler.
Future capital increases
If the business grows, you can add more capital later.
This can happen through:
- Retained earnings
- New investors
- A capital increase
- Convertible loans
- Factoring
- Mezzanine financing
This makes it possible to scale the business as it grows.
How can Flexum Coworking help?
When starting a business, the challenge is rarely only about share capital.
It’s also about keeping fixed costs down.
At Flexum Coworking, we offer, among other things:
- Virtual office from DKK 188/month
- Professional business address
- Help with company formation
- Flexible solutions with no long-term commitments
- Access to a network of entrepreneurs
For many new businesses, this is a way to appear professional without having to invest in expensive office premises.
You can’t set up an ApS entirely without capital in 2026.
However, there are several legal ways to reduce the need for cash.
The most relevant solutions are:
- Non-cash contributions
- A combination of assets and cash
- Financing through loans
- Investors
- Public support schemes
The best solution depends on your finances, your assets, and your growth plans.
If you’re unsure, you should always seek advice before incorporating the company.
