Choice of business entity

Choice of business entity

Establishment and registration of a company in Norway – LLC or NUF?

When a foreing company is to be established in Norway, it is crucial to choose the right type of business entity for your company.
The choice is usually between an LLC or NUF.

  • A limited liability company is abbreviated to AS in Norwegian (Aksjeselskap).
  • NUF is the Norwegian abbreviation for “Norwegian-registrered foreign company”.

Other Norwegian business entities can also be relevant, though rarely.

The difference between AS and NUF

Branch – NUF

A NUF entails:

  • Registration of the foreign company in Norway. The company gets a Norwegian branch.
  • The Norwegian branch is not an independent legal entity.
  • The foreign company is liable for all obligations associated with the Norwegian branch.
  • The branch gets registered in the Norwegian corporate registert and given an organization number.
  • The branch is eligible for VAT registration.
  • The business address can be in Norway or the home country

Company – Limited liability (AS)

An AS entails:

  • Establishment of a Nowegian limited liability company (subsidiary).
  • The company is an independent legal entity.
  • Memorandum of association documents are prepared, a board of directors and possibly a director is appointed. Legal participants are required to have either a Norwegian social security number or a D-number.
    The minimum share capital required in Norway is NOK 30 000 (~ EUR 2977) (It is recommended that the share capital is proportional to the scope and type of activity the company intends to carry out).
  • The parent company is not liable for obligations in the Norwegian company, unless parent guarantees have been specifically stated.
  • The business address must be in Norway.