How to Change Your Business Structure in Norway
How to Change Your Business Structure in NorwayUpdated on Tuesday 13th June 2017
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If your business in Norway requires a significant change in its organization, it is important to know that the process of converting an enterprise in a different legal structure is not an impossible task. Regardless of the reasons for which you intend to make such a move the legal framework of Norway meets investors halfway by providing you the legal procedure to reorganize your enterprise. Whether you wonder if it is the right time to change the legal form for your company or you have questions about the steps you need to do, it is recommendable to discuss with one of our Norwegian lawyers for professional advice.
Several methods to change a business structure in Norway
Adding partners as well as changing ownership are two of the most practiced ways to bring modifications to a business. Another powerful way to give new perspectives to an enterprise is to change its legal form, thus allowing the business to enter another chapter of its development.
The change in business structure requires some legal steps in which you will need assistance from a law firm in Norway. In some cases the investor might choose to dissolve the old business in order to register, instead, a new legal form. Merging with other companies is only one example of a situation in which investors will need a reorganization of the previous structure of the enterprise.
The changes in legal structure will imply as well a series of modifications in taxation. Our attorneys in Norway can explain you in detail the implications of this procedure and they can help you as well successfully conclude this process.
Reasons for changing a business form in Norway
The Norwegian market welcomes a wide variety of foreign investments in many economic areas. The legal form in which a business is started may no longer correspond to future development plans. After some time of successful functioning, a sole proprietorship might be transformed into a limited liability company in order to increase the liability protection. Other companies might require a change of the business form when the number of employees is growing, because such a step requires as well different liability protection.
A change in structure allows a company to grow and to become more profitable by extending its activity to higher economic levels. When a company wants to sell shares to the public, it must be organized as a corporation; therefore a business owner might decide to convert his/her enterprise into a corporation.
Feel free to contact our Norwegian lawyers for more information regarding the process of changing your business form in Norway.