Establish a Limited company (AS)
A limited company is a busienss entity in which none of the owners (share holders) have any personal liability for the enterprise's liabilities .This form of enterprise is an independent legal entity.
- Theoretically speaking, the owners of a limited company can only lose the share contributions made to the company in case if creditors file claims against the company. That is why the Norwegian Limited Liability Companies Act contains several provisions limiting the shareholders' right to withdraw funds from the company.
- In limited companies, the promoters must contribute to the share capital. Minimum share capital contributions must be an amount of 30 000 NOK in total.
- The share capital contributions must be confirmed by an auditor or a financial institution before the company is registered in the Register of Business Enterprises.
- If the share contributions are to be settled exclusively in cash, a confirmation may be provided by a financial institution. The share capital requirement can be met by making non-cash contributions. When choosing non-cash contributions, an open balance must be prepared and an auditor must confirm the contributions. Appraisal or valuation will normally be required as well. The timing of the valuation shall not be earlier than four weeks prior to establishment. Shareholders are not required to make contributions to the company over and above the share capital contributions each shareholder is required to pay.
- The startup costs can be covered using the share capital.
- The owner of an AS can be an employee of the same AS as well. The owner (employee) is entitled to receive the same social security benefits as other employees.