An AS company in Norway. How much does it cost and what do you need to know before setting one up?

AS is short for aksjeselskap, the Norwegian equivalent of a limited liability company. As the Altinn portal explains, the company is legally separate from its owner. It has its own assets and liabilities, separate from your private money and debts.

The minimum share capital is NOK 30,000. This is the contribution you transfer to the company when setting it up. You also have to pay for registration. Brønnøysundregistrene, the Norwegian registers, lists the following fees:

• Electronic registration costs NOK 6,825.
• Paper registration costs NOK 7,912.

Altinn recommends having additional funds available on top of the share capital to cover the company's operating costs.

As the owner of an AS, you are generally not personally liable for its debts. However, you must take into account the possible loss of the capital paid into the company. Example: suppose the company takes out a loan and you personally guarantee its repayment. If the company stops repaying the debt, the bank may demand payment from you under the guarantee. Separate liability is connected with serving on the board of directors. As a board member, you are liable for damage caused to someone intentionally or through negligence while performing this role.

A payment from a client into the AS's account belongs to the company. It does not automatically become your private income. You can receive money, among other ways, as salary for work or as a dividend, which is a distribution of profit to the owner. These two methods of payment have different consequences. If you work for the company and receive a salary, the company withholds tax and pays the employer's social security contribution. It therefore handles your payroll in the same way as for other employees. An owner employed by their own AS has employee rights on the same terms as other employees. Receiving dividends alone does not build entitlement to employment-related benefits.

An AS company pays 22% tax on its profit. Example: suppose the company's taxable profit is NOK 100,000. The tax will be NOK 22,000. The remaining NOK 78,000 still belongs to the company. If you pay yourself a dividend, tax on that payment must be settled separately. Tax on the company's profit and tax on dividends are two separate tax settlements.

1. Choose a name ending in the abbreviation “AS” or the word “aksjeselskap”.
2. Establish a physical business address in Norway. Provide the street or road name, building number, postal code and locality.
3. Complete and sign the memorandum of association. Also prepare the articles of association, the document setting out the rules for how the company operates.
4. Choose a board of directors with at least one member. Board members and any deputy members must be reported to the Register of Business Enterprises.
5. Pay in the share capital and obtain confirmation of payment from the bank.
6. Prepare the registration notification using the Samordnet registermelding form. Attach the memorandum of association, articles of association, and confirmation of the capital payment from a bank or financial institution.

For electronic registration, the notification must be signed by the entire board, including any deputy members. The person confirming the payment of the capital must also sign it. The notification must reach the Register of Business Enterprises no later than three months after the company is established. What counts is the date the register receives the notification, not the date it is sent. If a person who is to hold a role in the company is applying for a D-number, attach a certified copy of their valid identity document. Once you receive an organisation number, you have 14 days to report whether the company has beneficial owners. These are persons who actually control the company. You must submit the report even if the company has no such persons.

An AS must register for VAT when sales subject to this tax exceed NOK 50,000 over a period of 12 months. It is the value of sales that counts, not the profit after costs have been deducted. Example: suppose VAT-liable sales totalled NOK 60,000 over 12 months, while the profit was only NOK 5,000. The registration threshold has been exceeded because the sales amount is decisive. An AS must also submit financial statements every year, which are an annual summary of its finances. The document is submitted to the Register of Company Accounts, known as Regnskapsregisteret.

Whether you are an employee is not determined solely by the name of the contract. The contract must reflect the actual conditions of the cooperation and comply with the regulations. Example: suppose your boss suggests that you set up an AS and issue invoices for the work you have been doing so far. Switching to invoices alone does not determine that you cease to be an employee.