Company Operations
Glad Nuhu – Business Developer at Insj UiO
The What?
Company Operations in this context refers to a general understanding of the type of business you are building and what legal structure (Entity) fits best, and what elements (departments) are required to execute your idea.
Types of Legal Structures
There are three most common legal entities used, and they all affect the responsibility and risks you take on as a member of the business:
- Sole proprietorship / self-employed business (”enkeltpersonforetak” in Norwegian)
- In this type of business entity, you are personally responsible for and gains(financial profit) and risk(debt) associated with the business.
- A private limited liability company / a stock-based company (”aksjeselskap”- AS)
- In this type of company, the individuals involved are not personally liable for the company’s obligations. Hence you are only vulnerable to the risk of losing the amount paid for owning shares. In Norway, you need 30,000Nok to register for this sort of company.
Glad Nuhu – Business Developer at Insj UiO
- Partnerships/Corporations (”ansvarlig selskap”- ANS or ”delt ansvar’- DA)
- This is a company where two or more owners (participants) collectively or individually have unlimited personal responsibility for the business. The company’s creditors initially relate to the company, but if the company cannot settle, then it is the participants’ responsibility to settle the claims. Example, An example could be a farmers corporation where several farmers form a partnership to get sell their crops together
Where to Registration
To operate a company in Norway, you will need to register with the tax office (Skatteten) and the Central Coordinating Register for Legal Entities (CCRLE)/ Brønnøystud Register center.
Internal Operations
Company operations also broadly define how the company’s structure is set up internally to achieve set goals. To set up your internal structure, you need to clearly outline what goals need to be met to achieve your milestones (e.g., brand awareness, product sales, product building, etc.). What skill sets are required to achieve the goals, how to categorize the skill set to collaborate effectively, how the progress will be measured, how communication will be managed within and across the categories you set up.
