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ENK

ENK (enkeltpersonforetak) - SOLE PROPRIETORSHIP


Economic activity carried out in one's own name and on one's  own account. Check what are the advantages of a single-person business and what to remember when setting it up .

Pros

The easiest, quickest and cheapest procedure of establishing the company
There is no registration fee
No share capital required.
As an ENK is linked to you as a person, it provides great flexibility. You can, for example, transfer and withdraw funds into the enterprise without more notice.

Remember

The owner has full personal and financial responsibility for company’s liabilities.
Social security priviliges are much more modest than those of employees.
The regulations of the Norwegian Working Environment Act do not apply to the owner.
The profit from the sole proprietorship does not entitle to unemployment benefits.
A sole proprietorship is the most popular type of company for those who are new at business.
 
The company is not a legal person as in the case of an AS – Norwegian Limited Liability Companies, therefore the owner is financially liable for all the debts, something which constitutes a huge risk should the company ever get in any financial trouble.
 
Norwegian companies very often prefer to cooperate with AS companies as this allows them to verify and control their financial situation. We strongly discourage choosing sole proprietorship in working with projects with substantial financial risk.

Need help?

If you have more advanced questions related to operating on the market in Norway we are happy to help. Please contact us so we can arrange a meeting and show what can we offer.

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