An (; ) is a
Norwegian 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 many national agencies and international organiza ...
, 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. The central law regulating limited liability companies in Norwegian law is the Companies Act of 1985.
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
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the deb ...
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), the other would still have to carry no more than the 1 million NOK debt.
A
business
Business is the practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entered into for ...
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. 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 ...
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".
References
{{DEFAULTSORT:Ansvarlig Selskap
Types of companies of Norway