Company Formation: Norway Further Improves Small Companies Regime

Norway has lowered its statutory capital requirement for the country’s variant of the private limited company or AS (Aksjeselskab) for a second time in just over a year. The new lower capital requirements came into effect on 01 July 2013.

As recently as 2012, Norway lowered both its minimum capital requirements for private limited companies incorporated as a Norwegian A/S and also gradually decreased corporation tax for small companies to a 28% rate — still higher than in the U. K. — and has also improved numerous collateral regulations for smaller companies.

The latest requirements update is lowering minimum capital for the Norwegian A/S to just NOK 10,000 (roughly £6,500 or US$ 10,500), making this one of the most attractive legal entities for small and start-up companies and adding significant dynamical growth to the country’s already vibrant and booming economy.

Many IT and technology companies have opened business in Norway, making good news of these favourable regulations. A wide range of enterprises in different fields has also profited from the liberal companies regime in Norway. Already home to companies like Trolltech, Opera and many other high-tech outfits, the south eastern economic powerhouse of Norway in Østfold and Åkershus fylker located primarily between the Oslo fiord to the west and the Swedish Dalsland, Värmland and Lake Vaner areas to the east is expected to further benefit from these developments.

Under EEA (European Economic Area, the combined EEC and EFTA countries plus Switzerland) rules harmonising business laws as well as granting rights of establishment in the country to businesses and individuals from all EEA countries, small businesses from all over Europe could benefit significantly from the new Norwegian companies requirements, with lawyers and accountants worth their salt expected to update themselves to the new opportunities in that Nordic country.