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Gosh, I wish we had the LLC option here in Norway. The only "real" similar alternative we have is an AS (Aksjeselskap, "stock company"), which requires a minimu

Gosh, I wish we had the LLC option here in Norway. The only "real" similar alternative we have is an AS (Aksjeselskap, "stock company"), which requires a minimum of 100 000 NOK in company capital (about 16 000 USD). The other viable option is a Norwegian foreign registered company (NUF). This means that I can create a company in a different country (e.g. England), and then register a company branch here in Norway. The problem is that these companies have gotten a bad rep in Norway, so you might find yourself in a bad position with the banks, as well as your customers.

davidw 17y ago
Yep, this is one of the very real problems with "Europe", which, by and large (and with a few exceptions like the UK and Ireland) makes it very expensive to start a company. It seems stupid to me... I mean, go ahead and slap high taxes on profits if that's what you choose as a society/country, but at least wait until there are profits to tax before you ask for a lot of money. Sure, I know the capital can theoretically be invested in your company, but 16K is potentially a lot for a web business... Incidentally, I'm curious about the foreign company option. Any other Europeans want to comment on how that works out in your country? I'm vaguely curious if I could link one up in Europe with DedaSys LLC without spending a fortune in bureaucracy...
- Luc 17y ago
  I am glad you put "Europe" in quotes, because it's a diverse place etc.etc. That said, European unification has made possible a few new options for startup companies. There is now a 'European Limited Company' form, and it is also possible to register a company in any country from another country. For that last option the UK Ltd. route is very popular. Here in Belgium there are certain restrictions to starting up a limited company (minimum starting capital, diploma or experience needed, no bankruptcy in last 10 years etc.) which don't apply to UK limited companies. Apparently it's possible to start a UK limited company and conduct business in a different country, paying taxes in that country etc., as long as you have a return filed with Companies House and pay the yearly fee. EDIT: Just noticed the grandparent already mentioned this second option, oops.
michael_dorfman 17y ago
Yeah, but remember that the 100.000 NOK only needs to be in the bank long enough for the auditor to verify its presence for Brønnøysund. It's not uncommon to set up a chain of companies, owning each other, using the same 100.000 for all of them, just transferring it along.
- Luc 17y ago
  Of course you'll still be liable for the whole amount in case the company goes bankrupt...
cvg 17y ago
How about an Irish Corp? They have a low tax rate. 12.5% and tax treaties with a bunch of countries. This should allow you to get dividends or capital gains at a more favorable rate. Tons of high tech companies have set up their European operations hqs there, using it as their nexus for all Euro profits.

davidw 17y ago

Yep, this is one of the very real problems with "Europe", which, by and large (and with a few exceptions like the UK and Ireland) makes it very expensive to start a company. It seems stupid to me... I mean, go ahead and slap high taxes on profits if that's what you choose as a society/country, but at least wait until there are profits to tax before you ask for a lot of money. Sure, I know the capital can theoretically be invested in your company, but 16K is potentially a lot for a web business... Incidentally, I'm curious about the foreign company option. Any other Europeans want to comment on how that works out in your country? I'm vaguely curious if I could link one up in Europe with DedaSys LLC without spending a fortune in bureaucracy...

Luc 17y ago
I am glad you put "Europe" in quotes, because it's a diverse place etc.etc. That said, European unification has made possible a few new options for startup companies. There is now a 'European Limited Company' form, and it is also possible to register a company in any country from another country. For that last option the UK Ltd. route is very popular. Here in Belgium there are certain restrictions to starting up a limited company (minimum starting capital, diploma or experience needed, no bankruptcy in last 10 years etc.) which don't apply to UK limited companies. Apparently it's possible to start a UK limited company and conduct business in a different country, paying taxes in that country etc., as long as you have a return filed with Companies House and pay the yearly fee. EDIT: Just noticed the grandparent already mentioned this second option, oops.

michael_dorfman 17y ago

Yeah, but remember that the 100.000 NOK only needs to be in the bank long enough for the auditor to verify its presence for Brønnøysund. It's not uncommon to set up a chain of companies, owning each other, using the same 100.000 for all of them, just transferring it along.

Luc 17y ago
Of course you'll still be liable for the whole amount in case the company goes bankrupt...

cvg 17y ago

How about an Irish Corp? They have a low tax rate. 12.5% and tax treaties with a bunch of countries. This should allow you to get dividends or capital gains at a more favorable rate. Tons of high tech companies have set up their European operations hqs there, using it as their nexus for all Euro profits.