Drawing up a budget gives you better control over costs and earnings. If you haven’t yet set up a budget for next year, it might…
The minimum share capital when starting an LLC is 30 000 NOK, and you can spend this money on the costs of establishment.
Up until 2011, the minimum was 100 000 NOK, and you had to cover the costs of establishment in addition to this.
Now you can establish an LLC at the price of 30 000 NOK, including the cost of establishment. This entails that you can spend of the share capital to cover the cost of establishment.
It is also a myth that the share capital is restricted from use after you have put it into the company.
Something you have to be aware of, however, is that the law requires that the company's capital is reasonable based on the extent of the company (look further down in the article).
For example, if you put in 300 000 NOK, and you later wish to take out share capital, this is no problem. This can be relevant if the company has stable finance otherwise.
Registering an LLC in the Register of Business Enterprises (Foretaksregisteret) costs just over 5000 NOK. Private limited liability companies are required to register in the Register of Business Enterprises. Sole proprietorships aren't (with some exceptions).
There are also other costs when establishing an LLC. This could be, for example, confirmations and perhaps help to start up.
Below you will find a link to our startup-guide, which shows how simple it has become to establish a limited company under simple conditions.
NB! You are no longer required to compile an opening balance at the establishment of a new LLC when the share-input is done with money.
You will usually be left with between 20 000 and 24 000 NOK in share capital if you take the startup-costs from the 30 000.
So it's all about getting an income or some other finance quickly. Otherwise, the road to bankruptcy is extremely short.
The law of shares demands that the company has a reasonable equity based on the risk and extent of the company.
This now also applies to the liquidity (how much money you have available at any time). To put it simply, this is a demand for you to have enough money to pay your bills.
The demand regarding the liquidity arrived a few years ago and sharpened the rules on this field.
There are many examples of past LLCs that have sold well but haven't had control over their liquidity. This also makes the road to probate court and bankruptcy short.
There is a lot to keep in mind when it comes to starting up an LLC.