When establishing a new enterprise in Norway, there are several elements that should be considered; Should you take personal risk? Can you access capital sources to start a limited company? Should you start sole proprietorships (zero capital requirements), in anticipation of growth and then later convert to limited partnership once needed capital is acquired?
The four most common forms of companies (in Norway) are:
- Sole proprietorships (ENK)
- Partnership (ANS or DA)
- Limited company (AS)
- Norwegian Registered Foreign Company (NUF) - Not Recommended
We can assist with the choice of incorporation, the preparation of memorandum and ensure that the corporate establishment is registered with the Norwegian Register of Business Enterprise. Need assistance in VAT, budgeting and finance solutions? Get in touch with our Accountants!
Think carefully about the potential outcomes of opportunities and consider the possibilities of starting a limited company rather than a sole proprietorship. What suits your business model? There is a high-risk element to a start-up, and it’s anything but pleasant to mortgage your house with the risk of running in to serious trouble if the business plan is a failure. Personal financial risk is greatly lessened by choosing a limited company structure for your start-up. Norwegian Registered Foreign Company (NUF) may result in loan and credit complications, but works fine for those who are content with being employed, without major capital investments.
Changes from the Ministry of Finance
The relief of the audit requirements in Norway, involve significantly lower costs when starting and operating a limited company (AS). This is supported further by the lessening of the stringent equity demands needed for the establishment of a limited company. The new capital requirement is only 30,000NOK versus the previous 100,000NOK in opening Balance. The new legislation also provides start-up cost (related to lawyers, auditors and accountants etc.) to be cover by the captial required for the opening statement.
Three conditions apply to the exempt of audit:
- The company has less than 5 million NOK in revenue
- Below 20 million NOK in total assets
- The average number of employees does not exceed 10 man-years.
For more information, please get in touch with one of our accountants for further advice on this topic.