1. Different Business Entities -

1.1 Introduction and outline -

Enterprises in Norway may be organized in several ways; the most common are limited liability companies, partnerships and sole proprietorship.

When selecting the appropriate business form in Norway, the choices are mainly between the above mentioned three structures. If the activities are of a non-profit or voluntary nature, a club, association, or foundation may also be an alternative.

The key factors to consider when choosing a particular business entity type are volume, risk, earning potential and taxation. Also, the availability of a particular entity type depends on the number of owners. A single owner may operate as a sole proprietor or a limited liability company. If there are two or more owners of the business, by definition it cannot be a sole proprietorship, but it may be an unlimited or limited partnership, or a limited liability company.