# What is Aksjeselskap: AS (Private Limited Company)?

Country: Norway

Norwegian private limited company. The most common business structure for active trading. Minimum share capital NOK 30,000. Registered with Brønnøysundregistrene (BRREG). Shareholders have limited liability: personal assets are protected.

## Current rate (Inntektsår 2025)

22% selskapsskatt on profits; 37.84% effective tax on dividends to personal shareholders

## Example

Petter registers a web development business as Petter Web AS. He contributes NOK 30,000 share capital. His personal assets are protected from business debts. The AS pays 22% tax on its profits; dividends to Petter are taxed at 37.84% above the skjermingsfradrag.

## How Aksjeselskap: AS (Private Limited Company) works in Norway

The Aksjeselskap (AS) is the Norwegian equivalent of a private limited company: the same concept as the UK's Ltd, Germany's GmbH, or France's SARL. It is by far the most common structure for anyone running an active Norwegian business beyond the micro level.

**Setting up an AS**

To form an AS you need:
1. At least NOK 30,000 in share capital (reduced from NOK 100,000 in 2012). This must be paid in cash or in-kind assets.
2. At least one shareholder (can be one person as both shareholder and director).
3. A board of directors (styre): typically one person for small AS. A company with more than NOK 3m share capital or more than 200 employees needs a larger board structure.
4. Registration via Altinn.no → Samordnet registermelding, submitted to Brønnøysundregistrene (BRREG). Processing is typically 1–3 business days. Online formation can be done in a few hours once all documents are prepared.

The registration creates an Organisasjonsnummer (9-digit ID, e.g. 123 456 789) issued by BRREG. This number is used on all invoices, tax filings, and business correspondence.

**Liability protection**

The defining feature of an AS is limited liability: shareholders can lose their investment (share capital) but their personal assets cannot be seized to pay company debts. Exceptions: if a director/shareholder personally guarantees company debts (common when obtaining bank credit), or in cases of fraud or gross negligence.

**Taxation of an AS**

The AS is a separate taxable entity. It pays 22% selskapsskatt on its profits. When the AS distributes dividends to personal shareholders, the dividend is taxed under the Aksjonærmodellen: dividend × 1.72 × 22% = effective 37.84% tax. This 'grossing up' compensates for the fact that companies deduct a notional return (skjermingsfradrag) based on the acquisition cost of shares and the risk-free interest rate.

See separate entries for Aksjonærmodellen and Fritaksmetoden for details on how dividends and inter-company dividends are taxed.

**Mandatory obligations**

- Annual accounts (årsregnskap) and annual report (årsberetning) for companies above a certain size
- Filing annual accounts with Regnskapsregisteret within 7 months of the financial year end (usually 31 July for calendar-year companies)
- Maintaining a shareholder register (aksjebok) and reporting annually via RF-1086 (Aksjonærregisteroppgaven)
- Filing the skattemeldingen (corporate tax return, RF-1028) by 31 May (an extension must be applied for before the deadline)

**When NOT to use an AS**

For very small or new businesses with low turnover, an Enkeltpersonforetak (ENK, sole trader) avoids the AS maintenance costs and share capital requirement. The typical crossover point where an AS becomes tax-advantageous is roughly when annual profit exceeds NOK 500,000–700,000: at that point, the ability to retain profits in the AS at 22% rather than paying personal trinnskatt makes the AS structure worthwhile.

Source: https://www.brreg.no/lag-og-drive-foretak/registrere/akseselskap-as/

## Related terms

- [Selskapsskatt (Corporate Income Tax)](https://accounts-os.com/no/glossary/selskapsskatt-no)
- [Fritaksmetoden (Participation Exemption)](https://accounts-os.com/no/glossary/fritaksmetoden-no)
- [Aksjonærmodellen (Shareholder Model)](https://accounts-os.com/no/glossary/aksjonaermodellen-no)
- [Brønnøysundregistrene: BRREG (Norwegian Business Register)](https://accounts-os.com/no/glossary/brreg-no)
- [Utbytte (Dividend)](https://accounts-os.com/no/glossary/utbytte-no)