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A Subscription letter is a formal document investors use to commit funds when buying shares in a Danish company, particularly during capital raises or initial public offerings. It spells out the key terms of the investment, including the number of shares being purchased and the price per share.

Under Danish corporate law, these letters play a crucial role in documenting subscription agreements and protecting both parties' interests. They must include specific details required by the Danish Companies Act, such as payment terms and any special rights attached to the shares. The letter becomes legally binding once signed, creating clear obligations for both the investor and the issuing company.

Use a Subscription letter anytime you're investing in shares of a Danish company, especially during fundraising rounds or IPOs. This document becomes essential when making significant equity investments, as it clearly documents your commitment to purchase specific shares at an agreed price.

The timing matters most when dealing with time-sensitive investment opportunities, complex share structures, or multiple investors participating in the same funding round. Danish companies often require these letters before finalizing share transfers or recording new ownership in their shareholder registry. Getting this document right from the start helps avoid disputes and ensures compliance with Danish corporate regulations.

• Standard Share Subscription: Basic version used for straightforward share purchases, covering essential terms like price and quantity
• Series Investment Letter: More detailed format for venture capital or private equity rounds, including investor rights and preferences
• IPO Subscription: Specialized version for public offerings, meeting Danish FSA requirements and stock exchange rules
• Employee Share Program: Simplified format for company employee share schemes, aligned with Danish labor and tax regulations
• Rights Issue Letter: Used when existing shareholders exercise pre-emptive rights to buy new shares during capital increases

• Investors: Both individual and institutional investors use Subscription letters to formalize their commitment to purchase shares in Danish companies
• Company Directors: Review and approve the letters, ensuring compliance with corporate bylaws and Danish law
• Corporate Lawyers: Draft and review the letters to protect both parties' interests and ensure legal compliance
• Investment Bankers: Coordinate the subscription process during IPOs or large capital raises
• Company Secretaries: Handle administrative aspects, including shareholder registry updates and document filing

• Company Details: Gather full legal name, registration number, and registered address of the issuing company
• Share Information: Document exact number of shares, share class, and price per share being offered
• Investor Data: Collect complete identification details and contact information for all subscribing parties
• Payment Terms: Specify payment deadline, bank account details, and any installment arrangements
• Special Rights: Note any voting rights, dividend preferences, or other special conditions attached to the shares
• Compliance Check: Use our platform to ensure the letter meets all Danish corporate law requirements automatically

• Party Details: Full legal names, addresses, and registration numbers of both company and subscriber
• Share Specifications: Precise number, class, and nominal value of shares being subscribed
• Payment Terms: Clear payment instructions, deadlines, and bank account details
• Representations: Subscriber's confirmation of investment understanding and eligibility
• Governing Law: Explicit statement of Danish law application and jurisdiction
• Signature Block: Dated signatures from authorized representatives of all parties
• Share Rights: Description of any special rights or restrictions attached to the shares

A Subscription letter differs significantly from an Engagement Letter in several key aspects, though both documents formalize important business relationships under Danish law.

• Primary Purpose: Subscription letters specifically commit to purchasing shares in a company, while Engagement letters establish professional service relationships
• Legal Effect: Subscription letters create immediate binding commitments to purchase equity, whereas Engagement letters outline ongoing service terms and obligations
• Required Content: Subscription letters must include share quantities, prices, and payment terms, while Engagement letters focus on scope of services and fee structures
• Timing: Subscription letters typically relate to a single transaction point, but Engagement letters govern continuing relationships
• Regulatory Context: Subscription letters must comply with Danish corporate and securities laws, while Engagement letters primarily follow contract and professional service regulations