Simplification of establisment of smaller businesses, minimum share capital is reduced to NOK 30.000,-
The Norwegian Government has started work in order to simplify the establishment of small businesses throughout the country. In a Parliamentary Bill from April 2011 it is suggested several measures in this respect.
Some of these measures are implemented and involve changes in the Limited Companies Act from 1997. The changes do not all apply for Public Limited Companies which are governed by the Public Limited Companies Act, also from 1997.
One of these changes is a revision of § 3-1 where the minimum share capital for a Limited Liability Company is reduced from NOK 100.000,- to NOK 30.000,-.
Another change is that § 2-5 is revised in a way where the costs connected to the establishment and registration of the company can be drawn from the share capital. Earlier such costs had to be paid in addition to the share capital as a share premium. This change also apply for Public Limited Companies.
Further there is a new regulation in § 7.5 whereby smaller businesses can decide not to appoint an Auditor, which earlier were necessary for all Limited Companies.
It should be noted that the changes are valid for all Limited Companies, also companies established before the changes were implemented.
These changes will reduce the establishment costs for small businesses and also make it easier for more businesses to be organized as Limited Companies.
Erik Dahl