Start a limited company: AS or sole proprietorship?

Do you want to start a limited company in Norway? Then you need at least 30,000 kroner in share capital and pay 6,825 kroner in fees for electronic registration. An AS protects your personal finances. A sole proprietorship does not.

Should you start a limited company or sole proprietorship?

Choose limited company (AS) if you want to separate your personal finances from your business. Choose sole proprietorship (ENK) if you want to test an idea cheaply and alone.

An AS is a separate legal entity. You and the company are two different "persons" in the eyes of the law. An ENK, on the other hand, is you yourself.

This difference determines who pays the bill if something goes wrong. In an AS, you only risk the money you have invested. If the company goes bankrupt, you normally do not lose your house or car. An AS also makes it easier to bring in investors or sell the company later.

In an ENK, responsibility is unlimited. You are personally liable for all company debt. This is the trap many do not see: if the business owes money, creditors can take from your personal assets. Want to understand ENK first? Read how to register a sole proprietorship or the comparison freelancer or sole proprietorship.

AS or ENK: who is it right for?

The table below shows the main differences. Use it to choose the right one for your situation.

Choose AS if:

• you have loans, inventory or other financial risk
• you plan to hire people or bring in co-owners
• customers or clients require a registered company

Choose ENK if:

• you work alone with low risk
• you want to start free and quickly
• you are a freelancer or consultant

How to start a limited company step by step

You register an AS electronically in Altinn (the public website for forms to the state). The notification is called Coordinated registration notification and goes to the Business Register in Brønnøysundregistrene – the state register for Norwegian companies. You need BankID to sign.

Here is how you do it:

1. Establish the company. Write a founding document with articles of association. Decide on name, purpose and share capital.
2. Pay in the share capital. Put at least 30,000 kroner into a separate account. The bank or an auditor confirms the payment.
3. Fill out the Coordinated registration notification in Altinn. All founders sign digitally.
4. Submit and pay the fee. You get an organization number when the case is approved.
5. Register in additional registers as needed – for example the Value Added Tax Register.

The deadline for registering the company is three months from when you signed the founding document. If you have the papers ready, the entire process can be done in under an hour.

If you work in a regulated profession – for example health, construction or electrical – you may need professional recognition for regulated professions before you can operate legally.

What does it cost to start a limited company, and how long does it take?

Electronic registration in the Business Register costs 6,825 kroner in 2026. On paper it costs 7,912 kroner. The good news: you can use the share capital to cover the establishment costs, including the fee. Then you often have around 22,000–23,000 kroner left in the company afterwards.

Processing is fast. If you establish digitally, Brønnøysundregistrene starts processing within five business days. Simple cases can be registered automatically in a few hours.

SamfunnPrep has gathered several practical guides for those new to Norwegian working life. See the full tools overview for checklists and guidance along the way.

Do you need to register your company for VAT?

You must register your company in the Value Added Tax Register (VAT) when you have sold goods or services for more than 50,000 kroner within a twelve-month period. The limit does not follow the calendar year, but any twelve-month period.

Remember: you cannot add VAT to invoices before registration is approved. The invoice that causes you to pass the limit should include VAT. Want to understand the tax system better? Read tax explained simply for immigrants.

Tax, salary and sick pay in an AS

In an AS, the company pays 22 percent tax on profit. You withdraw money as salary or dividend. You cannot help yourself freely from the account as you can in an ENK.

If you take a salary, you are considered an employee in your own company. This gives you 100 percent sick pay from day 17, like other employees. A self-employed person with an ENK gets only 80 percent from day 17, but can buy better coverage from NAV (Norwegian Labour and Welfare Administration).

A salary also gives you pension accrual and the right to unemployment benefits if you lose your job. Dividends do not. That is why many owners take some salary, even though dividends can be worthwhile tax-wise.

Common pitfalls when starting a limited company

Many make the same mistakes at the beginning. Here are the most common, and how to avoid them.

• You think the share capital is lost. The 30,000 kroner are the company's money. You can use them for equipment, rent and other operating expenses.
• You take money directly from the account. In an AS, you cannot help yourself freely. Money must go out as salary or dividend, otherwise it becomes an illegal loan.
• You forget the paperwork. An AS must submit both a tax return and annual accounts every year. That is more work than with an ENK.
• You wait too long for VAT. If you pass 50,000 kroner without registering, you may have to pay interest on what you should have paid.
• You choose AS without reason. If you work alone with low risk, an ENK can be cheaper and easier in the first year.

An AS thus provides more security, but also more administration. SamfunnPrep recommends that you think through risk, sick pay and tax before you choose.

Many of these rules about working life, tax and companies are part of what you learn for the society knowledge test – practice for free on SamfunnPrep.