The Limited Liability Companies Act adopted by the Greenlandic Parliament will enter into force on July 1, 2018.

The Limited Liability Companies Act, which supersedes the Private Companies Act and the Public Companies Act, includes several modernizations and new possibilities for Greenlandic companies, which bring Greenlandic company law closer to the Danish Companies' Act – e.g.:

  • reduction of required capital for private limited companies from DKK 125,000 to DKK 50,000
  • the opportunity for partial payment of the required share capital (25 %, however with a minimum of DKK 50,000)
  • establishment of an entrepreneurial company, with a required starting share capital of DKK 1
  • administrative simplifications in case of merger or division of a company


Going forward, Greenlandic companies are also obliged to register shareholders holding 5 % or more of the share capital or voting rights in the Danish Business Authorities’ Public Register of Major Shareholders. The same applies in some cases to pledgees holding pledges over shares.

Rules on registration of the real owners in the Public Register of Major Shareholders has not yet been set out.

contacts

Søren Hornbæk Svendsen

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