A partnership is an association of two or more owners (partners) who are jointly or severally liable for the enterprise's total liabilities.
In practice, there is a choice between two main partnership structures:
In a general partnership (ANS), all the partners have an unlimited personal liability for the enterprise's total debt (joint and several liabilities). What one partner is unable to pay can be claimed in full from any of the other partners.
In a general partnership with shared liability (DA), the partners jointly have an unlimited personal liability for the enterprise's total debt, but each partner is only liable in proportion to his or her ownership interest in the partnership.Each partner's stake must be stated in the partnership agreement.
Both individual persons and legal bodies can be partners in a partnership. If a share of the partnership belongs to several jointly, an individual must be appointed to act on behalf of the partnership.
A general partner must be of age. The head office must be located in Norway, but the partners are not normally required to be residents of the realm.
The partners are obliged to enter into a partnership agreement, which must be in writing and dated and signed by all the partners. There are certain minimum requirements relating to the content of the agreement. Among other things, it must include clauses describing the partnership's mission statement and the value of any partnership contributions. The partners may agree that the contributions may be something else than money, such as private property, patents, goodwill and other assets.
Before a partnership starts to conduct business, notification must be sent to the Register of Business Enterprises for registration.
Matters relating to terms and conditions or agreements between the partners, can be regulated by entering into a separate partner agreement.
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