Company formation Norway.com shows the necessary procedure in order to start a business in Norway. In order to incorporate a company in Norway the investors must draft the which includes drafting the articles of association, drafting other documents such as specimen signatures, special forms or passport copies of the persons willing to start a company in Norway.
TYPES OF BUSINESS ENTITIES IN NORWAY
The most popular form of business, especially designed for small and medium business is the Private Limited Liability Company(Aksjeloven). The incorporation of an A.S requires a minimum share capital of at least 30000 NOK (approximately 4000 EUR.).
This type of Norwegian company can be opened by at least one founder and the major decisions in it (such as appointing the executive bodies, the increase or decrease of the capital, the modification of the articles of association) are taken by the general meeting of the shareholders.
The capital of such business is divided into shares and the decision to transfer these shares can be taken only by the majority of the votes of the members.
A Norwegian Joint Stock Company (Allmennaksjeselskap-A.S.A) is designated for larger business, and the required capital, divided into shares, cannot be less than 1.000.000 NOK (approximately 125.000EUR).
The capital of the A.S.A is divided into stocks which can be transferable to the public and which can be registered at the Stock Market. The registration at the stock market is important because it is a modality of increasing the share capital. The major decisions are also taken by the general meeting of the shareholders while the daily decisions are taken by the members of the management board.
Small forms of business. A form of business where the liability of the members is unlimited is the partnership, which can be general or limited. A Norwegian General Partnership is formed by equal partners who can split the profits and are fully liable for the entity’s actions while a Norwegian Limited Partnership is formed by a general partner and at least one silent partner. The silent partner is bringing a contribution to the entity’s capital and it has a limited liability in extend of this contribution while the general partner has full liability in the partnership (even with his own assets).
INCORPORATION PROCEDURE IN NORWAY
The specific of the Norwegian company incorporation is that it is performed through the Brønnøysund Register Centre.
In the beginning of the process of company incorporation in Norway, the founders must open a bank account and deposit the company’s capital. The bank will issue a deed of deposit and the balance sheet must be examined by an outside auditor. This auditor will issue a statement confirming the opening balance and the company's acceptance of the auditor appointment.
The documents necessary for registration in the Norwegian Register of Business Enterprises can be deposited online through the web based filling system or in person or through post. The VAT registration form can be submitted at the same time as filing for company registration and it is necessary when the annual turnover will exceed 50000 NOK.
The last step of company incorporation in Norway is enrolling in the mandatory workers’ injury insurance and arrange for mandatory occupational pension plan for employees.
ECONOMY OVERVIEW IN NORWAY
With high standards of living due to the stocks of natural resources (especially on petroleum, forests, minerals) compared to the size of population, Norway is considered one of the most powerful country in the world where you would like to start a company.
Norway is placed in the top of the major exporters of oil, natural gas and fish. It’s also known as a great maritime power (bordering the North Atlantic Ocean and the Barents Sea) and a big hydropower producer.
Even though it has decided not to be an EU member, Norway has access to the European Internal Market by signing the EEU (European Economic Union) treaties.
With flexible commercial law for those willing to start a company in Norway and only a few steps that need to be fulfilled before starting a new business, this jurisdiction is considered one of the most suitable destinations for the investors.