New bill will make Danish company law the most modern in the world.

"If there is the political will to pass the bill, we will have the most modern company law in Europe and perhaps in the entire world," says Professor Jesper Lau Hansen from the University of Copenhagen to Børsen Business Daily. He is a member of a committee mandated to modernise Danish company law.

The bill is expected to be finalised before the end of 2008 and if the politicians pass it, Denmark will have a new joint company law for both private limited companies and limited companies that will put the company's needs first and considerably reduce administrative burdens, placing Danish company legislation in the European super league, according to Committee Chairman Alf Duch-Pedersen.

"It will be the best company law in the world, because it puts the company first - and because it allows the possibility of a degree of flexibility in the fair and square operation of the company," says Duch-Pedersen to Børsen.

One specific proposal in the new law is the removal of the capital requirement of DKK 125,000 (EUR 17,000) for private limited companies. The capital requirement has prevented many entrepreneurs from establishing a business, yet it is not sufficiently sizeable to be of benefit when a company goes bankrupt.

Other proposals include the possibility of establishing a private company online 24 hours a day and the use of standard articles of association that will make it possible to establish a company without legal advice.