Selecting the company structure

The best form of business type depends on the size and nature of the business, as well as preferences concerning tax, capital flow and liability limitation. The company type you select should therefore be considered in specific terms.

• Stock-based companies, also called limited companies, are the most common form of companies. The risk is limited to the paid-up capital (share capital and share premium). Stock-based companies are governed by the rules of the Companies Act, and are established by the founders drawing up a formation document, paying the minimum share capital of NOK 30 000, and registering in the Register of Business Enterprises.
   
• General partnership companies are companies that are assessed (taxed) by the owners, and the liability is unlimited. One of the most common forms are unlimited liability (ANS), where each participant is responsible for all the company’s obligations. Another common form is where each participant’s liability is limited to their share of the company’s obligations (DA). In addition, there are other forms such as partnership company (KS) and internal partnership (IS). General partnership companies are regulated by the rules of the Companies Act.
   
• Sole proprietorship (EPFs) arise when someone manages business at their own expense and risk. You will be assigned an organization number, and you must submit an income statement with attachment (tax). You may also be obliged to submit the annual accounts and audit.

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