The Share Capital in Norway
The Share Capital in NorwayUpdated on Thursday 04th May 2017
Rate this article
based on 2 reviews
based on 2 reviews
The stable and strong economy of Norway has developed a tradition in attracting foreign capital. The Norwegian membership to the European Economic Area (EEU) translates into unrestricted access of national and foreign owned companies to the European market. The flexible commercial law allows for a number of companies to be opened in Norway. If you are looking to invest your money in the Norwegian market, our lawyers in Norway can help you with any legal advice of your need.
Share capital requirements for limited liability companies in Norway
The share capital company (AS - Aksjeselskap) is the Norwegian equivalent of a Limited liability company. This type of company has a legal personality and must have a total share capital of NOK 30.000. The share capital is the amount of money invested by the shareholders in a company. This type of business operates under the Norwegian Limited Liability Companies Act which stipulates that the shareholders have a limited right to withdraw money from the company and can only lose the share contributions each made to the company.
Before a Norwegian company can be registered in the Register of Business Enterprises, the share capital contributions must be confirmed by an auditor or a financial institution. The share capital can be established in cash or in other assets. If the contribution to a company formation is made in cash, a bank or any financial institution must provide a confirmation of the amount. A few steps must be taken in order to settle the company share capital in assets:
- • The business require these assets;
- • The contribution in assets must be appraised;
- • The evaluation of the assets must be done four weeks prior to the company formation;
- • An opening balance and a report about the asset contribution is needed; this documentation must be confirmed by an auditor.
If you need more details about share capital requirements in Norway you can call on the counseling and legal services of our law firm in Norway.
Increasing the share capital of a limited liability company in Norway
The main way to increase a company's share capital is by issuing new shares (new issue). The new issue implies that the company reduces its debts or is supplied with new capital. Other ways of increasing the share capital of a limited liability company include:
- • transferring the company`s founds to share capital (bonus issue). A bonus issue involves a transfer of unrestricted equity into share capital and has no effect on the company capital or debt;
- • subscription right shares;
- • special term loans;
- • conversion rights loans;
- • freestanding subscription rights.
For detailed information about the share capital, please feel free to contact our team of attorneys in Norway.