Abolishing Entrepreneurial Company (IVS) in Denmark: How Substantiated Are the Reasons and What Are the Negative Effects on Entrepreneurship?

Publikation: Working paperForskning

Standard

Abolishing Entrepreneurial Company (IVS) in Denmark: How Substantiated Are the Reasons and What Are the Negative Effects on Entrepreneurship? / Andhov, Alexandra.

2019.

Publikation: Working paperForskning

Harvard

Andhov, A 2019 'Abolishing Entrepreneurial Company (IVS) in Denmark: How Substantiated Are the Reasons and What Are the Negative Effects on Entrepreneurship?'.

APA

Andhov, A. (2019). Abolishing Entrepreneurial Company (IVS) in Denmark: How Substantiated Are the Reasons and What Are the Negative Effects on Entrepreneurship?

Vancouver

Andhov A. Abolishing Entrepreneurial Company (IVS) in Denmark: How Substantiated Are the Reasons and What Are the Negative Effects on Entrepreneurship? 2019.

Author

Andhov, Alexandra. / Abolishing Entrepreneurial Company (IVS) in Denmark: How Substantiated Are the Reasons and What Are the Negative Effects on Entrepreneurship?. 2019.

Bibtex

@techreport{4fb4f8b96ec94aa6adcb40fe8d1ef019,
title = "Abolishing Entrepreneurial Company (IVS) in Denmark: How Substantiated Are the Reasons and What Are the Negative Effects on Entrepreneurship?",
abstract = "Danish Parliament adopted a law (L190) that abolishes the formation of entrepreneurial companies (iv{\ae}rks{\ae}tterselskab) IVS in Denmark. This decision has raised surprise and concern from business and academic communities, questioning the decision-making processes of the Danish government. The entrepreneurial company form was introduced in 2014 with the aim to strengthen the entrepreneurship in Denmark. Currently the Government claims that the aim has not been reached. Based on the analysis prepared by the Danish Business Authority (Erhvervsstyrelsen) from September 2018 there are reasons to dissolve or transform all the existing IVS companies within the next two years and abrogate the IVS form from the Danish Companies Act completely. In this short essay, I briefly introduce the IVS company form and reflect on the Analysis prepared by the Danish Business Authority. I provide some thoughts on the substance of this Analysis and its key weaknesses when justifying their main outcomes, for which the IVS form is to be repealed – that these companies have, to a greater extent than expected, led to an increased risk of fraud and tax evasions. I conclude the article with few reflections on the minimum capital requirement, importance of legislative review and building entrepreneurship in Denmark. These conclusions are however universal and applicable across diverse jurisdictions.",
author = "Alexandra Andhov",
year = "2019",
language = "English",
type = "WorkingPaper",

}

RIS

TY - UNPB

T1 - Abolishing Entrepreneurial Company (IVS) in Denmark: How Substantiated Are the Reasons and What Are the Negative Effects on Entrepreneurship?

AU - Andhov, Alexandra

PY - 2019

Y1 - 2019

N2 - Danish Parliament adopted a law (L190) that abolishes the formation of entrepreneurial companies (iværksætterselskab) IVS in Denmark. This decision has raised surprise and concern from business and academic communities, questioning the decision-making processes of the Danish government. The entrepreneurial company form was introduced in 2014 with the aim to strengthen the entrepreneurship in Denmark. Currently the Government claims that the aim has not been reached. Based on the analysis prepared by the Danish Business Authority (Erhvervsstyrelsen) from September 2018 there are reasons to dissolve or transform all the existing IVS companies within the next two years and abrogate the IVS form from the Danish Companies Act completely. In this short essay, I briefly introduce the IVS company form and reflect on the Analysis prepared by the Danish Business Authority. I provide some thoughts on the substance of this Analysis and its key weaknesses when justifying their main outcomes, for which the IVS form is to be repealed – that these companies have, to a greater extent than expected, led to an increased risk of fraud and tax evasions. I conclude the article with few reflections on the minimum capital requirement, importance of legislative review and building entrepreneurship in Denmark. These conclusions are however universal and applicable across diverse jurisdictions.

AB - Danish Parliament adopted a law (L190) that abolishes the formation of entrepreneurial companies (iværksætterselskab) IVS in Denmark. This decision has raised surprise and concern from business and academic communities, questioning the decision-making processes of the Danish government. The entrepreneurial company form was introduced in 2014 with the aim to strengthen the entrepreneurship in Denmark. Currently the Government claims that the aim has not been reached. Based on the analysis prepared by the Danish Business Authority (Erhvervsstyrelsen) from September 2018 there are reasons to dissolve or transform all the existing IVS companies within the next two years and abrogate the IVS form from the Danish Companies Act completely. In this short essay, I briefly introduce the IVS company form and reflect on the Analysis prepared by the Danish Business Authority. I provide some thoughts on the substance of this Analysis and its key weaknesses when justifying their main outcomes, for which the IVS form is to be repealed – that these companies have, to a greater extent than expected, led to an increased risk of fraud and tax evasions. I conclude the article with few reflections on the minimum capital requirement, importance of legislative review and building entrepreneurship in Denmark. These conclusions are however universal and applicable across diverse jurisdictions.

UR - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3370620

M3 - Working paper

BT - Abolishing Entrepreneurial Company (IVS) in Denmark: How Substantiated Are the Reasons and What Are the Negative Effects on Entrepreneurship?

ER -

ID: 242606603