The bankruptcy procedure in Norway is regulated by the legal framework adopted by the country in 1984. The process consists in distributing to the creditors the remaining assets of insolvent companies. This transfer is arranged between the debtor and a bank or another legal person, who is entitled to receive compensations from the business found in the impossibility of payment. It is highly recommendable to rely on the assistance provided by a professional through a bankruptcy procedure in Norway. Our specialists in company registration in Norway can help you during your insolvency so that you can put in order your situation with your creditors.
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Main regulations in Norway concerning the bankruptcy procedure
In 1984 has been settled the legal framework concerning insolvency and bankruptcy procedure in Norway. The Norwegian bankruptcy Act stipulates the rights and obligations of the debtors and creditors and the Norwegian Recovery Act clarifies further details concerning the same issues.
According to the law, people who own a business in Norway and find themselves in the impossibility of payment can initiate by themselves a bankruptcy procedure. If the board of the company declares the company insolvent, then there are sufficient legal grounds to initiate the procedure by submitting with a Norwegian court a specific petition. The creditor has the right as well to initiate a bankruptcy procedure. Our experts in company formation in Norway can help you with the filling of the documents required in court and can explain to you each step you need to perform during the process.
Norway’s rules on the value added tax apply to both domestic and foreign companies as well as to sole owners who voluntarily register for this tax. Depending on a variety of factors, they may also receive a number of benefits, including VAT refunds. Contact us if you need support with the VAT registration in Norway.
Other details concerning the bankruptcy process in Norway
A hearing in court is a necessary condition for the initiation of a bankruptcy procedure. If the court decision establishes that the company is insolvent and can enter the bankruptcy procedure then, the court must appoint a trustee who has as a main responsibility the managing of the estate and of the remaining properties of the company.
The assets of the company are at the beginning identified by the trustee, both within the borders of the Norwegian state as well as abroad. The mission of the trustee is to try to keep the estate undivided and safe, in order to ensure that the sale is going to bring as much profit as possible.
If you believe that your business might enter insolvency please feel free to contact one of our specialists in company formation in Norway in order to help you either restructure your business or to close it in advantageous conditions.