A sole proprietorship in Norway represents the simplest business form in this country.
This legal structure can be opened only by one person who is personally liable for all the liabilities and obligations of his/her business. The owner has the entire decision power in his enterprise.
If you want to know what rules apply in the formation of a sole proprietorship in Norway
you can discuss in detail with our consultants in company formation in Norway
who can help you register your enterprise with the local authorities.
Legal requirements for the opening of a sole proprietorship in Norway
Although there is no specific legal act regulating the activity of a sole proprietorship
there are certain legal requirements that a founder needs to respect which can be found in the Company Act
in this country. The owner of the sole proprietorship
must be at least 18 years old and must be able to provide for the company and have a address in Norway. Since the business has no separate liability from the owner, the revenues of the sole proprietorship
will be taxed along with the total income of the person.
An investor in Norway
who intends to establish a sole proprietorship
can hire personnel according to the Employment Law in this country. The owner can register his company with the Central Coordinating Register for Legal Entities, free of charge, and he will obtain an organization number.
From more than five employees, the owner has the obligation to register the company
also with the Register of Business Enterprises under the specific tax. Our specialists in company registration in Norway
can handle the registration procedure with the two authorities mentioned above.
Other aspects of a sole proprietorship in Norway
If you conduct a business activity in Norway
through a sole proprietorship
you need to be in the evidence of the tax authorities. Therefore you need to provide information on your revenues and losses during your first year of trade. You can register as well your sole proprietorship in the value added tax register
in order to be able to deduce VAT.
If your sole proprietorship in Norway
reaches 30 employees then it will be subject to similar regulations as partnerships
. The owner needs to provide several additional rights to the employees such as representation in companies’ meetings through which further decision are taken in the development of the company.
Don’t hesitate to contact
our Norwegian company formation firm
for additional information on the registration of a sole proprietorship in Norway