Starting a company in Denmark is refreshingly straightforward on paper, but the early decisions you make — often before you’ve even hired your first employee — tend to be the ones that come back to bite you. Here are five of the most common legal mistakes we see founders make, and how to steer around them.
1. Skipping a proper founders’ agreement
Verbal understandings between co-founders rarely survive contact with real disagreements about equity, roles or exit terms. A written founders’ agreement, drafted before the business gains momentum, is one of the cheapest forms of insurance you can buy.
2. Mixing personal and company finances
Treating the company bank account like a personal one blurs the legal separation between you and the business — and can undermine the limited liability protection an ApS or A/S is meant to provide.
3. Using generic contract templates
Templates found online are rarely written with Danish contract law or your specific industry in mind. Client agreements, NDAs and supplier contracts should reflect how your business actually operates.
4. Getting employment terms wrong
Danish employment law sets out clear requirements for written contracts, notice periods and terms of engagement. Getting these wrong early on tends to create disputes later, right as the company can least afford the distraction.
5. Ignoring data protection obligations
Even small startups that collect customer or employee data have obligations under the GDPR. A basic data protection policy and a clear view of what data you hold and why goes a long way.
This article is for general information only and is not a substitute for tailored legal advice. Get in touch if you would like to discuss your specific situation.
