According to the Unemployment Security Act, a person described in the Self-Employed Persons’ Pension Act 3 § or Farmers’ Pensions Act 3-5 § is deemed an entrepreneur.
An entrepreneur is:
- a person that works outside of an employment relationship. (This means for example work through invoicing service cooperatives and any commissions done outside an employment relationship.)
- a person that works in an executive position at a limited liability company of which they themselves own at least 15 % of the share capital or voting rights or they together with their family own at least 30 % of the share capital or voting rights
- a person that works at a limited liability company of which they themselves or together with their family own at least 50 % of the share capital or voting rights
- a person that works in another company form or community where they themselves or together with their family have authority similar to that referred to above.
A person is seen as having an executive position in the company if they are the CEO or a member of the board of directors or if they are in a similar position in a limited liability company or other company.
A family member is a spouse (including spouses that live in the same household but are not married) or the entrepreneur’s direct lineal ancestors or direct lineal descendants that live in the same household.
When evaluating ownership holdings, indirect ownership through another company is also considered in addition to direct ownership.