Running an ApS in Denmark is, fortunately, a very rewarding experience for most. We certainly find that the majority are incredibly happy with the conditions they operate under and the opportunities available to them.

However, our experience also tells us that many stumble a bit when it comes to the annual report for an ApS. And we can certainly understand why.

For one thing, the rules and requirements issued by the Danish Tax Agency and the Danish Business Authority are numerous and quite complex. Furthermore, as an ApS owner, you have to figure out whether these rules apply to you or if you need to navigate a completely different set of special regulations.

That is why we have dedicated this blog post to helping you better understand the rules and requirements from the Danish Tax Agency and the Danish Business Authority regarding annual reports for an ApS.

What must an ApS annual report contain?

As an ApS owner, you are classified by the Danish Business Authority as a capital company, which means your ApS is subject to the rules for reporting class B.

You must therefore prepare your annual report according to the rules and requirements that apply to reporting class B. Reporting class B is for limited liability companies, which means you are required to submit a less detailed annual report to the Danish Business Authority.

Your annual report must therefore include the following:

• Statement by the management
• Management commentary
• Income statement
• Balance sheet
• Notes, including a description of the accounting policies applied
• Auditor's report (if applicable)

Furthermore, it is important to remember that you only remain in reporting class B as long as you do not exceed two of the following size limits for two consecutive financial years:

• Net revenue of DKK 111 million.
• Total assets of DKK 55 million.
• An average of 50 employees during the financial year.

(The size limits apply to financial years beginning on or after January 1, 2023. Source: The Danish Business Authority)

If these are exceeded, your ApS will move up to reporting class C, which entails additional requirements for your annual report.

Read more about reporting class B here

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The various requirements for the annual report of an ApS

In the next section, we will go through the requirements above so that you have a clear understanding of what the various terms cover.

Statement by the management

The management of your private limited company must sign a statement confirming that the annual report has been prepared in accordance with legislation and that the financial statements provide a true and fair view of the company's activities.

Management commentary

In this section, the management reviews the past year and outlines the strategy for the coming year. A good management commentary can be of great value to potential stakeholders and must at a minimum include:

• The company's principal activities
• Any significant changes in the company's activities and financial position
• Treasury shares
• Events after the balance sheet date

Income statement

The income statement is the part of your financial report that shows your revenue and expenses for the financial year. It provides you and your stakeholders with an overview of the financial results.

A particularly important figure in the annual report is the profit or loss for the year. This allows you to see whether your company has made a profit or a loss during the given period.

Balance sheet

In the balance sheet, you must provide an overview of your limited company's financial situation.

This means you must list your assets (the wealth of your limited company) and your liabilities (the debt of your limited company). Together, the assets and liabilities show the value your limited company holds and how it has been financed.

In your annual report, assets and liabilities must always balance. This means the balance sheet is only correct when your assets and liabilities amount to the same total.

Notes

Notes serve as a supplement to your annual report and are not essential for reading or understanding the core financial statements. In this section, the reader can delve deeper into the various accounting items if they find it of interest.

In the notes section, you must also be able to account for the following:

• Salaries
• Pensions
• Other social security costs.

Read more about notes here.

Let us help you with filing your annual report

As mentioned earlier, you are required to file your annual report with the Danish Business Authority. There is also a requirement that you complete your tax return form accurately and in full.

If these requirements seem overwhelming or stressful, and you don't want to pay a fortune to have an accountant handle it for you, let us help!

At Reportability, our online tool helps you file your annual report. The tool ensures that all requirements are met while guiding you through which figures to enter in the various fields.

On average, it takes our customers 30 minutes to generate their annual report with us. This means that in about 30 minutes, you will have a complete annual report ready to submit to the Danish Business Authority, as well as a full overview of the figures you need to enter in your tax return.

If you have any questions along the way, please don't hesitate to contact us via chat or phone.

Does this sound like something for you? You can create a free account below.