Bankruptcy can take place if your planned venture does not turn out as thought and any company could encounter this, which includes a NUF selskap. As the NUF is a Norwegian branch of a limited company situated elsewhere in the EU or England, it becomes important to know whether a bankruptcy in your NUF could lead to the parent company being declared bankrupt as well. The answer is, no. The bankruptcy will not have any adverse effect on the main company, which can continue its business as it previously did. Only the liquidation of the branch will take place.
In case of a bankruptcy in the NUF, the representative may file for bankruptcy, for which only the Norwegian branch will be taken into account for the proceedings. The main company in England will then be informed of a possible liquidation of the NUF selskap. Only the branch will be declared bankrupt while the parent company will remain unaffected by this liquidation. Let an agency like Panlegis handle your NUF company formation, as they will be able to guide you the right way and may be able to help you avoid a bankruptcy.
You may know the laws that are applicable to any business in your country, but may not be familiar with the laws prevailing in another country, in this case, the NUF in Norway. It is therefore feasible to use the services of a company formation agency like Panlegis to help you pick the right path. They provide extensive services and if required include follow up services, which can be quite useful for you because with their help you can focus better on the company operations of your NUF selskap. This can in turn save you from a possible bankruptcy.
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