Sole Proprietorships (ENK) or limited company (AS)?
We help you with a comparison, so you can find the company type that suits you best.
What company type should I choose?
When starting your own business, choosing a company type is one of the first and most important decisions you make. Many are between sole proprietorships (ENK) and limited companies (AS), but there are also other options such as shared responsibility (DAs) or clubs and associations, depending on what you’re going to do.
The choice between ENK and AS depends on several factors, such as financial risk, tax, and how you want to run the business. For some, a shared responsible company (DA) can also be an option, where two or more owners share the responsibility. Teams and associations are suitable for businesses with voluntary or voluntary objectives.
Choose the right company type - ENK or AS?
Sole Proprietorships (ENK)
- for those who want to start fast and easy
With ENK, you own the business entirely and the start-up costs are minimal – there is no requirement for equity.
But remember, you are personally responsible for all debt. This means that your personal finances may be affected if your business doesn’t go as planned.
Disadvantages of ENK:
- Personal liability for liabilities and obligations
- Limited social security rights, such as sickness benefits
Benefits of ENK:
- Simple and cost-effective establishment
Let us help you get started with your ENK today. Here in DNB you can register your business and become a customer with us – all in one place.
Private Limited Company (AS)
– for those who want security and scalability
Private Limited Company (AS) are a popular choice for many entrepreneurs, and offer greater security by distinguishing your personal finances from the company’s.
With an AS, you only risk the equity you have invested in the company. To start an AS, at least NOK 30,000 in share capital is required.
Disadvantages with AS:
- Requirement for NOK 30,000 in share capital. These are funds the company can use, but the Companies Act requires that funds are available at all times.
- Several accounting and reporting requirements
Benefits of AS:
- Limited liability – you run the risk of equity that you’ve deposited
- Better social security rights (such as sickness benefits and pensions)
- Opportunity to bring in investors and scale the business
Company forms summarised
Private Limited Company (AS)
Gives you a clear distinction between private finance and the company’s finances, but requires at least NOK 30,000 in equity. AS often gives a more professional impression and can be more favourable for tax purposes if you are planning growth or larger investments.
Sole Proprietorships (ENK)
Easy to start, without equity requirements. You are personally responsible for your finances, which means that your private finances and the company’s finances are closely linked. This is often a good solution for small businesses with low risk.
Holding companies
A holding company is a company that has no other purpose than to own shares in other companies. «Not other tasks» means that there is no operation to talk about; neither the sale of consultancy hours nor the provision of goods.
Read more about Holding companies