AS in Norway: Pros and cons of setting up a limited company

When your business is ready to enter the Norwegian market, it's important to choose a company form that ensures legal protection and financial stability. The AS (Aksjeselskap) is one of the most common company forms in Norway and is used by both small and large businesses. But what makes AS an attractive choice and what should you consider before you decide?

What is AS?

An AS (Aksjeselskap) is an independent legal entity in Norway where the owners' liability is limited to their capital contribution. This means that owners are not personally liable for the company's debts or obligations. To establish an AS, there is a requirement for a minimum share capital of NOK 30,000, which can be used for the operation of the company.

Benefits of AS:

  • Increased trust: AS provides a higher level of credibility among Norwegian customers and business partners. Many people prefer to work with companies that are incorporated as AS as it provides a sense of stability and accountability.
  • Legal protection: As the owner of an AS, your personal assets are protected as the company is a separate legal entity. You are only liable for the capital you have contributed to the company.
  • Name protection: Your company name is protected in Norway when you register an AS. This can be an advantage if you want to build a strong brand identity.
  • Tax liability in Norway: An AS is taxable in Norway, which in certain cases can provide tax benefits depending on the company's income and expenses.
  • Electronic registration: It is possible to register an AS online, making the process faster and easier.

Disadvantages of AS:

  • Share capital requirement: To establish an AS, you must provide NOK 30,000 in share capital. This can be a barrier for smaller businesses that do not have the necessary capital available.
  • Administrative requirements: AS has more administrative requirements than a NUF. For example, an auditor is often required, which can increase overall costs.
  • Address requirement: To set up an AS, the company must have a Norwegian address, which can be a challenge for foreign companies.

Should you choose AS?

AS is the best solution for companies that want to create long-term and stable business relationships in Norway. Although it requires a larger investment in terms of capital and administration, AS provides a high level of legal protection and credibility in the market. Consider AS if you want to establish a more permanent presence in Norway with plans for growth and long-term success.

Starting a business in Norway?

Contact us today for a no-obligation conversation.