Gille Advokater

Types of incorporation

Advantages and disadvantages of corporations

 

 

 

Advantages

Disadvantage

Sole trader

 

Makes most decisions alone, Great financial freedom

Personal liability

 

No deposit obligations

Unlimited liability

 

No restrictions on distributing profits

The company's finances are bound up with personal finance

 

Tax deductions for deficiency

Tax on the company's profits

 

Easy and inexpensive to establish

 

 

Easy to change to another company type

 

 

 

 

ANS

No deposit obligations

Personal liability

 

No restrictions on distributing profits

Unlimited liability

 

Tax deductions for deficiency

Tax on the company's profits and on dividends

 

Important who the other partners are (and their finances)

 

 

Easily changed to an AS

 

 

Inexpensive to establish

 

DA

Limited liability

Personal liability

 

Otherwise the same as ANS

 

 

 

 

KS

Combination of roles like the partners in an ANS (general partner) and partners in an AS (limited partner)

Must be registered, formalised

 

General partners may be an AS

General partner: unlimited and personal liability

 

Limited partner: limited liability

Limited partner: deposit obligation of at least NOK 20,000

 

Tax deductions for deficiency

Tax on the company's profits and on dividends

 

 

 

AS

Limited liability

Deposit obligation of at least NOK 30,000.

 

No personal liability for the company's debt

Limited access to distribute profits

 

Does not depend on who the other shareholders are

Must be registered, formalised

 

Easy to combine with other AS companies (mergers)

Not so easy to change to another type of company

 

Can be used as a partner in an ANS (shareholders do not have personal liability beyond the share capital)

The company is taxed on profits + shareholders are taxed on dividends

 

No auditing obligation if turnover is below NOK 5 million

Shareholders are not exempt from tax in the event of deficiency

 

 

 

ASA

Limited liability

Deposit obligation of at least NOK 1 million

 

No personal liability for the company's debts

Limited access to distribute profits

 

Can put the company on the stock exchange and obtain capital from the public

Must be registered, formalised

 

 

The company is taxed on profits + shareholders are taxed on dividends

 

 

The shareholders are not exempt from tax in the event of deficiency

 

 

 

Cooperative

No deposit obligation

Profits are not distributed (profits are distributed through discounts on trade with the company)

 

Limited liability

 

 

No personal liability

 

 

 

 

NUF

Limited liability

Must conduct oneself with two national sets of legislation.

 

Deposit liability of the country in which the headquarters are based

Must follow up obligations (reporting and formalities) set by foreign authorities

 

No auditing obligation if turnover is below NOK 5 million

 

 

Easy to establish

 

 

 

 

SE company

Easier for the company to expand in several EEA countries

Deposit obligation of at least EUR 120,000

 

Easy to move the headquarters to another EEA country

Obliged to register in the country where the headquarters is based

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