Set up a business

A sole trader company (Enkeltpersonforetak - ENK) is an organisation in which a natural person is responsible for the business. This means that you have full financial responsibility for the business’s requirements and obligations. You are not obliged to invest money in the company, so you can start with NOK 0 in your account.

ENKs are unbureaucratic, cheap and simple. In return you have personal liability for debt, get a slightly inferior level of social insurance, and all profits are taxed as personal income at up to 49.6 per cent. The ENK cannot offer ownership interests to partners, investors and key employees.

AS is an abbreviation for aksjeselskap (private limited company). An AS has a number of advantages. Vis-à-vis creditors (those who have lent the company money) you’re only liable for the amount you have deposited. As an employee in your own AS you can claim the same social security benefits as other employees.

When you form an AS you need to deposit a minimum of NOK 30,000 in share capital. Compared to an ENK, AS has slightly stricter accounting requirements. An AS must also have a board of directors with at least one member.

When starting a business, you need to consider whether you should set up an ENK or AS. If you are unsure, DNB’s Start-up advisory team help you for free.

Sole proprietorship (ENK) is an organisation in which a natural person is responsible for the business. This means that you have full financial responsibility for the business’s requirements and obligations. You are not obliged to invest money in the company, so you can start with NOK 0 in your account.

Private limited company (AS) is an abbreviation for aksjeselskap (private limited company). The private limited company has some advantages. Vis-à-vis creditors (those who have lent the company money) you’re only liable for the amount you have deposited. As an employee in your own AS you can claim the same social security benefits as other employees.

When you form an AS you need to deposit a minimum of NOK 30,000 in share capital. Compared to an ENK, AS has slightly stricter accounting requirements. An AS must also have a board of directors with at least one member.

If you want to set up a private limited company (AS) instead of a sole trader company, you can get more info here.

There are also several other company types, such as general partnership with shared liability (DA), general partnership with joint and several liability (ANS) and foundations. Read more here.