A joint stock company in Norway is a type of corporation that is owned through joint by all the shareholders which act like the investors of the company. In this case, all the shareholders own a part of the company’s stock, depending on the amount of their shares.
Company formation in Norway is very offering from a legal entities’ point of view. Local and foreign investors can choose between non-corporate and corporate forms, among which there is also the joint stock or public limited liability company.
Below, you can find our guide on opening a joint stock company in Norway. After finishing to read this article, if you decide to set up a business under this form, you can get in touch with us for support.
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Requirements to establish a joint stock company in Norway
In order to decide if this legal entity suits your interests, you must know the requirements imposed by the Company Law to register it. Here are the main highlights in this regard:
- the public limited company can have one or more stockholders; the founder may be a natural person or a legal entity;
- the business must have a registered (local) address in Norway (please note that postal office boxes are not allowed, so instead you can opt for a virtual office);
- this legal entity must have a minimum share capital of 1 million NOK (a little over EUR 110,000) and it must be deposited in full upon registration;
- the company must elect a board of directors and it implies a condition that at least 50% must be Norwegian citizens or residents (EU and EEA residents are also accepted).
If you want to open a business in Norway and you are a citizen of a non-EU/EEA state, you must apply for a residence visa that enables you to do so first. The Norwegian Directorate of Immigration (UDI) is the authority in charge of accepting and processing visa applications. Apart from this, once you enter the country, you must also obtain a D number that serves for tax identification purposes.
Documentation required to open a joint stock company in Norway
In order to successfully open a company in Norway, there are some important documentation requests to consider, such as:
- authorized registration certificate;
- official certificate of registered office;
- proof of identity and residency of owners;
- authorized Memorandum of Association (official document that includes information of the company like the names of the founders, the number of shares subscribed, the number of paid shares, members of the board, due date for paying the contributions);
- official paper of Tax Identification Number (official number used to pay taxes and open bank accounts in Norway);
- authorized document of Legal Entity Identifier (official numeric code used to identify entities that proceed financial transactions in Norway).
Our team of professionals specialized in company formation in Norway can offer more information in this area as well as for various business incorporation services, such as VAT registration in Norway or starting a franchise business. More than that, you can opt for assistance regarding opening a branch in Norway orsetting up a real estate company. Get in touch with the team for discussing the business matters that interest you.
Features of a joint stock company in Norway
The joint stock entity is the type of Norwegian company that has specific features, such as meeting certain trading name requirements. ‘Allmennaksjeselskap’ or the acronym ‘ASA’ must appear before or after the company’s name. As an option, it can also be registered as a trademark, therefore, benefit from protection. Find below the main characteristics of the joint stock company in Norway:
- JSC in Norway has limited liability. In other words, every shareholder who invests in the joint stock company is responsible for the company’s debts in coordination with the amount they invested in the business. In other words, investors in a joint stock company in Norway will not lose more than they paid for their invested shares.
- This kind of company in Norway represents a separate legal entity. In this manner, the company is a separate legal entity from its shareholders, which means it can control legal affairs, sign official contracts and own property.
- The shares in the company are easy to buy and sell. Having flexibility in stock transfer represents an advantage for investors as the joint stock company in Norway gives them the opportunity to join or leave the investment without affecting the company.
- The JSC in Norway benefits from continuous succession. This means that the company is continuing to exist even when the investors change or leave the business. The company’s activity is perpetual and it is not depending on who owns the shares.
- A joint stock company in Norway has the ability to own capital acquisitions. The company can raise funds and capital by offering shares to the major public. This gives the company more opportunities to grow.
If you are looking to open a Norwegian joint stock company and need support, our local agents are at your service.
How to register a public company in Norway
The business registration procedure for a Norwegian joint stock company is the same as for the private entity. It can be completed by our consultants. Since it has been mentioned, a common process is to convert a private limited liability company into a public one in order to list it on the Stock Exchange.
So, if you want to start small, you can form a private entity and upon reaching the minimum share capital of a public one, convert it.
Taxation of companies in Norway
After setting up a joint stock company in Norway, here are the main taxes to consider:
- the corporate tax is flat and applied at a rate of 25%;
- after completing the VAT registration procedure in Norway, you can expect to pay it at a rate of 25%;
- the confining tax on dividends which is charged with 25%.
Enterprises statistics in Norway
As being considered one of the most prosperous countries in the world regarding business, education and standard of living, official data shows that when it comes to company formation, Norway has some impressive numbers to observe:
- In the second quarter of 2024, there were 15,258 new established enterprises registered.
- From these 15,258 companies, 6,319 were private limited companies and 8,559 were sole proprietorships.
Furthermore, in order to open a Norwegian company with a successful development, it is necessary to follow the steps imposed by the authorities and seek support from specialized business agents in the country. Schedule a meeting with our team of experts in order to get more information regarding the type of company in Norway that you are interested in.
If you need assistance in launching a joint stock enterprise in Norway, do not hesitate to contact us.