The organizational form is therefore important when it comes to the definition of self-employement. If your company is registered in the Brønnøysund register as a limited company, you are not considered self-employed - you are then per. definition an employee. If, on the other hand, you run an ENK, a Responsible Company with joint and several liability (ANS) or a Responsible Company with shared responsibility (DA), then you are self-employed according to the tax rules. The most normal types of companies in Norway:

Limited Company (AS)

AS is Norway's most common and most recognized form of company. There are several reasons for this. One of the most important is this: With AS, the company and your personal finances are two different things. Driving for oneself seldom comes without a certain financial risk. If you operate with ENK, the state can take your apartment if, for example, you have not paid VAT. With AS, this is not an issue. Your private savings are kept out. In theory, you can have debts up to your ears without having to pay - as long as you have declared yourself bankrupt.

Are you going to start a Limited Company? Check out stiftemaskinen.no - a service provided by Folio!

If you create an AS, you can hire yourself. What happens then is that you become a full citizen in the eyes of the welfare state. As an employee of your own AS, you automatically receive social rights such as unemployment benefits, sickness benefits, parental benefits, holiday pay, pension, etc.

Sole proprietorships (ENK)

ENK is the simplest and least bureaucratic form of company.

You have personal responsibility. Therefore, you do not need start-up capital, and you can make lightning-fast decisions without going through the paper mill. The downside is that the authorities can take all your savings, your house and your cottage, if you have not paid VAT or done something else wrong. Any debt you incur is yours and no one else's. As a self-employed person, you do not have the same social security rights as employees. For example, you are not entitled to unemployment benefits.

If you are a permanent employee elsewhere, not very worried about risk, and only want to speculate on your income, ENK may be the right choice for you.

Responsible company (ANS og DA)

Two or more co-owners have shared personal responsibility for the company. Thus, there is no requirement for equity. With a DA you are only responsible for your share of the debt, while with an ANS you have joint and several liability, and one must pay the full amount if the others do not have the ability to pay. (Naturally enough, DA is more used than ANS). ANS and DA were more popular before the requirement for equity in AS was lowered to NOK 30,000.

NUF

NUF stands for Norwegian-registered foreign company, and is a Norwegian branch of a company registered abroad. Before, when the requirement for share capital was higher and all limited companies had to have an auditor, many circumvented the regulations by starting NUF. Now almost no one chooses NUF. This form of company is viewed with skepticism, unless you are actually operating abroad.

Alternative to starting your own company:

Self-employment through EasyFreelance is a new alternative to having your own company. Instead of starting your own company you can use EasyFreelances Platform to handle your invoices, find new partners and receive salary to your account. We will handle the rest so you can focus on what you know best, your work!