|Posted by Aase Herkules on January 24, 2015 at 10:25 AM|
Do you want to set up a company in Norway, but don't want to start a NUF or an AS (limited company)? Maybe setting up a sole proprietorship will suit you better. A sole proprietorship is an organizational form where a single person is responsible for the business. You run the business on your own account and at your own risk. This means that you are liable in full for any liabilities and obligations.
The owner must in general be minimum 18 years old. He or she does not have to be a resident of Norway. However, the enterprise is required to have an address in Norway. The owner of a sole proprietorship is not obliged to set aside funds for the enterprise, since he or she is personally liable in any case.
For tax purposes, a sole proprietorship is assessed together with the person who owns it. This means that the net profit is liable to tax as part of the owner's total income, including, for example, income from employment. In the same way, the net loss will be deductible.
Registration of company
All sole proprietorships can register with the Central Coordinating Register for Legal Entities, and will then be assigned an organisation number. Registration in the Central Coordinating Register for Legal Entities is free of charge. Sole proprietorships are also entitled to register with the Register of Business Enterprises. This is subject to a charge. On registering with the Register of Business Enterprises, the enterprise will be issued with a certificate of registration. If a sole proprietorship has at least five employees or is a wholesale or retail enterprise, registration with the Register of Business Enterprises is mandatory.
Large sole proprietorships
Sole proprietorships that have employed more than 30 people (on average) during the past three financial years are subject to some of the same requirements as partnerships. These requirements concern the rights of employees to be represented at partnership meetings and, if applicable, on the board.