An (; en, liable company) is a
Norwegian
Norwegian, Norwayan, or Norsk may refer to:
*Something of, from, or related to Norway, a country in northwestern Europe
* Norwegians, both a nation and an ethnic group native to Norway
* Demographics of Norway
*The Norwegian language, including ...
legal form, mainly used in
small and medium-sized enterprises
Small and medium-sized enterprises (SMEs) or small and medium-sized businesses (SMBs) are businesses whose personnel and revenue numbers fall below certain limits. The abbreviation "SME" is used by international organizations such as the World Bank ...
, in which the company's individual owners are held personally liable for any outstanding debts acquired by the company. It is similar to a
general partnership.
If any participant is unable to pay a share of the debt, it can be collected in full from the other participants. The term is usually abbreviated ANS when used in company names.
Unlike an ', anyone is eligible to start an ANS, as the model does not require any starting investment capital. It is a widespread form of company in smaller, low-risk business areas. For more economically-risky ventures, an AS would be preferable, as the personal financial losses in the event of a
bankruptcy would be limited to the capital invested: a bankrupted AS with a 2 million
NOK debt, the investors would stand to lose the invested capital, for instance 100 thousand NOK. In an ANS or , however, the owner would be personally liable for the entire 2 million NOK.
In the case of several owners, if one is unable to pay, the entire sum would be collected from the others. By using a (DA), with two investors and a 50% liability share, each would be liable for 50% of the debt, and if one should be unable to pay (in the case of
personal bankruptcy Personal bankruptcy law allows, in certain jurisdictions, an individual to be declared bankrupt. Virtually every country with a modern legal system features some form of debt relief for individuals. Personal bankruptcy is distinguished from corporat ...
), the other would still have to carry no more than the 1 million NOK debt.
A
business does not need to include the abbreviation for its type in its day-to-day operations, but it is required to register this in its
legal name
A legal name is the name that identifies a person for legal, administrative and other official purposes. A person's legal birth name generally is the name of the person that was given for the purpose of registration of the birth and which then ap ...
. As an example, a
self-employed
Self-employment is the state of working for oneself rather than an employer. Tax authorities will generally view a person as self-employed if the person chooses to be recognised as such or if the person is generating income for which a tax return n ...
plumber in an ANS could name his shop "John Smith Plumbing", but his mail address, legal documents and so forth would have to carry the name "John Smith Plumbing ANS".
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Types of companies of Norway