CreditHub: Norway
Business Structure
| Type | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Sole Proprietorship (Enkeltpersonforetak) |
|
Often referred to as a sole trader, a sole proprietorship is an unincorporated business with just one owner who pays personal income tax on profits earned, hence any debts or losses incurred cannot be shared with other individuals. It is the cheapest and easiest business structure to establish with the individual legally responsible for all aspects of the business. | Cheapest and easiest business structure to establish. Individual legally responsible for all aspects of the business. |
| General Partnership (Ansvarig selskap - ANS) |
|
A general partnership is a business arrangement whereby two or more individuals agree to share responsibilities, assets, profits, financial and legal liabilities of a jointly owned business; granting unlimited liability. | Suitable for businesses with multiple owners willing to share all aspects of the business, including unlimited liability. |
| Limited Partnership (Selskap med delt Ansvar - DA) |
|
In a limited partnership some partners are not entitled to manage its affairs but provide all or part of the partnership's capital. These partners are limited in their liability. In addition, one or more other partners are nominated as managing or general partners and have unlimited liability for the partnership's debt and losses. There is no need requirement for a minimum capital upon registration. | Allows for a mix of investors (limited partners) and managers (general partners) with different levels of liability. |
| Private Limited Company (Aksjeselskap - AS) |
|
A Private Limited Company is owned by a relatively small number of shareholders, and the sale of company shares is handled privately. An individual/owner is only responsible for the business's financial liabilities to the extent that they invested in the company. A minimum capital of NOK 30,000 is required. | Suitable for businesses seeking limited liability and private ownership. Requires minimum capital investment. |
| Public Limited Company (Publikt aktiebolag - AB) |
|
A public company is a corporation whose ownership is open to the public. Anyone can buy shares in the company's stocks. A limited company is a corporation in which an individual's financial liability for the company is restricted to the capital investment. A minimum capital of NOK 1 million is required. | Suitable for large businesses seeking public investment. Requires significant minimum capital. |
Data Sources
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Corporate Information | Brønnøysundregistrene | Corporate information is available at Brønnøysundregistrene, the Ministry of Trade and Industry Office: www.brreg.no | Use Brønnøysundregistrene for reliable corporate information. |
| Credit Checks | Financial state of affairs | You can obtain information on the financial state of affairs for companies and industry at the Ministry of Trade and Industry Office. There are also numerous private reporting agencies offering credit checks. | Consider using both public and private sources for comprehensive financial information. |
| Judgment Search | Credit reports | Normally you find this information in a credit report. Credit reports are offered as a service online. | Use online credit report services to check for existing judgments against a business. |
Contracting
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Contract Documentation | Written agreements preferred |
Contracts can be concluded orally or in writing. Most parties opt for written agreements because this is more certain. Recommended documentation for court proceedings:
|
Use written agreements and maintain comprehensive documentation for potential legal proceedings. |
Retention of Title
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Retention of Title |
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When included in trade contracts, retention of title allows the seller to retain ownership over the goods supplied until certain contractually defined conditions are met, therefore providing the seller with a form of security against the buyer's default or insolvency. If retention of title is not available, the trade creditor must bring a legal action for a judgment and attachment (that is, an execution lien over some or all the debtor's assets), or file for the debtor's insolvency. In Norway, retention of title must be agreed in the contract under the following conditions:
|
Include retention of title clauses in trade contracts to protect against buyer's default or insolvency. Ensure all conditions are met for the clause to be valid in Norway. |
Pre-Litigation
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Letter before action | Mandatory warning notice |
A warning notice to the debtor is mandatory before filing any enforcement claims. The warning notice should include:
If this measure has been taken and the payment still has not been made after the two-week notice period (according to the law), the creditor may file for enforcement. |
Always send a warning notice before filing for enforcement. Include all required information in the notice. |
| Interest and Collection Costs |
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If the contracting parties have not agreed this in the contract, then statutory default interest and collection costs are applicable. The creditor may in addition to the claim demand to recover from the debtor:
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Include clear terms for interest and collection costs in contracts. Be aware of statutory rates if not specified in the contract. |
Litigation
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Limitation Period | 10 years standard |
The standard limitation period is ten years from the accrual of the right in question and may only be halted by one of the following:
|
Be aware of the 10-year limitation period and actions that can halt it. |
| Alternative Dispute Resolution (ADR) |
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ADR is not an obligatory process in which debtors and creditors must go through even though courts may suggest exploring this option with the most common forms of ADR being mediation and arbitration. Mediation is used for all kinds of disputes, whereas Arbitration is a method to settle large commercial disputes in private. Other less commonly used ADR methods include expert determination and dispute review board (mostly for large construction cases). |
Consider ADR methods as potentially faster and more cost-effective alternatives to court proceedings. |
Court Proceedings
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Court Proceedings | Conciliation Board |
Should the debtor not be represented by counsel, a case must (with some exceptions) start at the conciliation board, regardless of value. This is largely a formality, and few serious disputes are resolved at this stage, with those valued over NOK 125,000 subject to an agreement between both parties before the District Court. Any complaints sent to the conciliation board interrupt any time bar period which runs for one year from when the case was referred. |
|
| District Court Initiation |
If the conciliation board process does not apply, then District Court with jurisdiction begins a case through a writ of summons (stevning). Such a summons should include:
The court serves the document on the defendant, granting a three week window for the debtor to reply. |
||
| Planning Conference |
Once the brief is received, the court calls for a planning conference by telephone with counsel, at which the following is typically discussed:
|
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| Evidence Submission |
All parties are entitled to amend or submit additional evidence up to two weeks prior to the main hearing. Anything submitted after this date may be rejected by the court. |
||
| Time frame | Up to 12 months or longer | Court procedures may take up to 12 months or longer and is subject to the complexity of the case and the individuals involved. | Be prepared for potentially lengthy legal processes. |
| Costs |
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Although summary proceedings have fixed fees of around NOK 1,500, overall costing is subject to the various fees, interest rates and debt values. All reasonable trial and preparation costs for the case, including lawyers' fees are recoverable with the actual amount decided by the case judge. Contractual costs may also be claimed in the absence of a demand letter. |
Consider potential costs when deciding to pursue legal action. Be aware that reasonable costs may be recoverable if successful. |
Enforcement of a Court Judgment
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Enforcement of Judgments |
|
In respect of enforcement procedures, Norway is a member state of the Lugano Convention (2007), which ensures the enforcement of judgments in the EU/EEA area. Furthermore, Norway is also a member state of the New York Convention (1958), ensuring the enforcement of foreign arbitral awards worldwide. Enforcement applications are handled, decided, and enforced by the Norwegian Enforcement Authority and executed entirely in writing. The most common forms include the seizure of assets (moveable or immovable property, or bank accounts) or attachments of earnings. |
Understand the international conventions that apply to enforcement. Be prepared to work with the Norwegian Enforcement Authority for domestic enforcement. |
Insolvency
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Voluntary Arrangements | Debtor-initiated | Debtors may opt for voluntary arrangements with creditors to reduce debt positions so as to avoid any insolvency proceedings altogether. Generally, this would be down to the debtor to organise. |
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| Court-imposed option | Courts may also impose this onto a case which would become binding for all creditors. | ||
| Insolvency Legislation | Two main acts |
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Understanding these acts is crucial for navigating insolvency processes in Norway. |
| Formal Insolvency Proceedings | Enforced Dissolution | A form of formal insolvency proceeding (details not provided in the original text). |
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| Bankruptcy | Bankruptcy proceedings aim to settle the debts of creditors equally through the liquidation of the assets of the debtor company, or through collection of any income of any bankrupt sole traders. | ||
| Reconstruction | Statutory reorganizational proceedings may be implemented by courts if a debtor is in financial difficulty, but business continuity is viable. In such a process, an administrator is appointed by the court to examine the debtor to assess whether a financial arrangement can be reached with its creditors. | ||
| International Agreements | Nordic countries treaty | Norway has treaties on bankruptcy with other Nordic countries (the 1933-Convention). | Cross-border insolvency cases may be subject to special agreements with Nordic countries. |
The information on this website is accurate to our knowledge as of January 2024.
The know-how stated is not intended to constitute a definitive or complete statement of the law, nor is it intended to constitute legal advice for any specific situation. We do not accept any responsibility for action taken as a result of information provided by on this website. It is your responsibility to take specific advice when dealing with specific situations. This website is intended as educational in nature and may not reflect all recent legal developments and may not apply to the facts and circumstances of individual transactions and cases.
Nothing on this website shall be construed or relied on as providing any legal representation, advice or opinion whatsoever on behalf of us or our staff.
Norway Latest Business News
- Small historic community faces huge rape case against its former doctor September 20, 2024
- New Quisling film opens in Norway, as the winds of war blow again September 20, 2024
- Still no interest rate relief in Norway September 19, 2024Many other countries have been lowering interest rates, but Norway's central bank has decided to buck the trend once again. Its policy rate was kept at 4.5 percent on Thursday, and probably won't be cut until early next year...
- Government launches a war on crime September 18, 2024
- Shootings in Bergen and Haugesund September 18, 2024
- Mullah Krekar wants to ‘come home’ to Norway September 17, 2024
- Inflation rate lands at 2.6 percent September 10, 2024Norway's state statistics bureau SSB reported Tuesday that prices in general are up 2.6 percent since September last year. Food prices, meanwhile, have risen another 4.5 percent, but were slightly down from August. Food prices usually fall in September, when...
- SAS strike over, workers won August 27, 2024Flight attendants at Scandinavian Airlines (SAS) had to go on strike for them, but have now won many of the standard pay and benefits held by other workers. That prompted them to call off the strike they'd called last...
- Struggling SAS faced new strike August 23, 2024NEWS ANALYSIS: Millions have been spent on lawyers' fees, consultants, executive pay and other costs tied to Scandinavian Airlines (SAS)' emergence from bankruptcy protection, while Norwegian flight attendants claim they haven't had a raise for 12 years and work...
- Airport projects boost costs August 23, 2024Avinor, the state-owned company in charge of running Norway's airports, faces higher costs for technology improvement projects that have left it with budget overruns. It thus needs more money from airport users and the state. Newspaper Dagens Næringsliv (DN) has...
- ‘Weak krone can be good for the economy’ August 22, 2024Norway's weak currency, the krone, has made it much more expensive for Norwegians to travel abroad and boosted the price of imports. The chief economist for Norway's largest trade federation LO, however, doesn't think it's all that bad. "It means...
- Grocery giants hit with huge fines August 21, 2024The Norwegian Competition Authority has finally cracked down on the highly profitable companies that control 95 percent of Norway's notoriously high-priced grocery stores. Rema, Coop and NorgesGruppen were slapped with fines totalling NOK 4.9 billion on Wednesday, after being...
- Norwegians still shopping in Sweden August 19, 2024Norwegians spent NOK 583 million more shopping in Sweden during the first half of this year than they did last year. That's up nearly 13 percent from cross-border spending during the same first-half period last year, as Norwegians seek...
- Weak krone sparks debate August 19, 2024Norway's unusually weak currency, the krone, strengthened a bit on Monday but remains a problem that's made many Norwegians feel poorer. The government refuses, though, to set up a so-called "krone commission" that could bind the krone to the euro,...
- Strike threat looms at SAS August 19, 2024Flight attendants at Scandinavian Airlines (SAS) are threatening to go out on strike later this week, if their demands for better pay and working conditions aren't met. The airline and the flight attendants' union were heading into mediation on...
- Widerøe allies itself with Lufthansa August 19, 2024Widerøe, Norway's short-haul airline that serves many small airports around the country, has signed a new agreement with the large German airline Lufthansa. It will allow Widerøe passengers to fly on to Lufthansa's international destinations on one ticket. The so-called...
- No change in interest rates, for now August 15, 2024Norway's central bank (Norges Bank) announced on Thursday that it had decided keep its policy rate unchanged at 4.5 percent, and that it's likely to stay there "for some time ahead." That was in line with most economists' expectations,...
- Stock market slump hits Oslo, too August 3, 2024The Oslo Stock Exchange (Oslo Børs) closed Friday afternoon after its worst day since March of last year. Its main index ended at 1408.9, down 2.94 percent. That was the biggest decline logged in one day for 17 months, even...
- Norwegians bemoan weak kroner July 27, 2024It's been costing Norwegians more than 14 of their kroner to buy just one British pound this week, more than NOK 12 to buy a euro and more than NOK 11 to buy a US dollar. That's further boosting...
- Norway logs another huge trade surplus July 23, 2024While many countries struggle with trade deficits, Norway managed to log its third-highest trade surplus ever earlier this month. The country's exports were valued at NOK 365 billion more than imports during the first six months of this year,...
Source: alphavantage.co
Using the Chart
Candlestick Series
Represents the daily opening, highest, lowest, and closing prices of a currency pair. This visual tool is pivotal for identifying price patterns and potential market directions, providing insights into market sentiment and possible price movements.
SMA (Simple Moving Average)
Calculates the average price over a selected number of periods, smoothing out price volatility. Commonly set at 14 days for short-term trend analysis, it helps identify the direction of the market momentum.
EMA (Exponential Moving Average)
This average places a greater emphasis on recent prices, thus responding more quickly to price changes than the SMA. A 14-day EMA is often used for reactive trend analysis, making it invaluable for dynamic trading strategies.
Bollinger Bands
Features a central SMA line with upper and lower bands that adapt based on price volatility. These bands widen during periods of high volatility and contract when the market is stable. This indicator is key for spotting the turning points in price movements by identifying overbought and oversold conditions.
RSI (Relative Strength Index)
A momentum oscillator that measures the speed and change of price movements on a scale from 0 to 100. It is particularly useful for identifying the conditions where an asset is potentially overbought (>70) or oversold (<30), often preceding reversals.
MACD (Moving Average Convergence Divergence)
Demonstrates the relationship between two moving averages, offering signals about the strength, direction, and momentum of the market. Its line crossings can signal potential buy or sell opportunities, aiding in decision-making on entry and exit points.
Stochastic Oscillator
Measures the current price relative to its price range over a specific period. Readings above 80 indicate a potential overbought situation (suggesting a sell), and readings below 20 indicate a potential oversold situation (suggesting a buy).
General Guidance
Utilise these indicators in conjunction with each other to gain a comprehensive understanding of market conditions, potential price movements, and to inform your trading decisions. Always consider the broader market context and other fundamental economic indicators to enhance the accuracy of your trading strategy.
