ANS or DA – what is the difference, and how large is the personal liability?
In an ANS each partner has unlimited personal liability for the whole of the partnership's debt. In a DA the liability is split by agreed shares – hold 10% and you answer for 10% of the obligations. A creditor has to claim against the partnership first, and where the claim is not met within 14 days of demand it can be made directly against the partners under section 2-4 of the Partnerships Act.
What a partnership is
A Norwegian partnership has two or more participants carrying on business together, where the participants are personally liable for the partnership's obligations. The partnership has its own finances, its own organisation number and its own assets. But the liability does not stop at the partnership's assets – that is the decisive difference from a limited company.
The creditor has to go to the partnership first
Section 2-4 of the Partnerships Act says the creditor first has to make the claim against the partnership. Where the creditor is not paid within 14 days of demand, the claim can be made directly against the participants. There is therefore an order, but it is short. Fourteen days is not meaningful protection once the partnership cannot pay.
ANS: one participant can become liable for everything
In an ANS the liability is joint, several and unlimited. Picture an ANS with three participants: Anna 80%, Bendik 10% and Cecilie 10%. The partnership has an unpaid claim of NOK 2 million. Where the partnership does not pay after demand, and Bendik is the only one able to pay, the creditor can in principle claim the whole remaining NOK 2 million from Bendik. It makes no difference to the creditor that Bendik economically owns only a tenth.
DA: the liability is divided
In a DA the participants have divided liability by agreed shares. With the same split – Anna 80, Bendik 10, Cecilie 10 – Bendik's external liability on an unmet claim of NOK 2 million would be limited to his share: NOK 200,000. Where Anna cannot pay her part, the creditor cannot as a starting point move her 80% onto Bendik and Cecilie. The split has to appear in the partnership agreement and be registered, otherwise the starting point can be joint and several liability.
«Divided liability» is not an amount in kroner
This is often misunderstood. Where Bendik has 10% liability, it is not capped at NOK 30,000 or NOK 100,000. It is 10% of the partnership's obligations. Where the partnership's unmet obligations are NOK 10 million, Bendik's liability can be NOK 1 million. Divided liability limits the fraction, not the amount.
Recourse between participants
Where one ANS participant pays the whole debt, section 2-5 provides for recourse against the others. Recourse only helps where the others can pay, though. To the creditor you are liable regardless; against your co-owners you have a claim you have to enforce yourself.
Old debt and liability after leaving
Joining an ANS or DA can make you liable for obligations that arose before you became a participant. The agreement between the participants does not change that as against a creditor. Leaving does not remove liability for obligations that have already arisen. Section 2-35 allows a departing participant to send a written request to the creditor to be released. Where the creditor does not reply within three months of the request arriving, the creditor is treated as having released the former participant. That request is worth sending, and worth documenting.
The partnership agreement does not protect you against a creditor
The partnership agreement governs the relationship between the participants. It does not bind an outside creditor. An agreement that «Anna covers everything» gives you a claim against Anna, not protection from the creditor. That is the same logic as between a shareholders' agreement and the articles in a limited company – see The shareholders' agreement
Tax: partner assessment
An ANS and a DA are not separate taxable persons. The result is determined at partnership level and allocated to the participants, who are taxed on their share. A participant cannot take salary from the partnership the way an employee of their own limited company can. Work remuneration and distributions follow their own rules. Under the ordinary 2026 rules a self-employed person gets sick pay from day 17, with a requirement of at least four weeks' qualifying service, and the option of voluntary insurance – the same starting point as a sole proprietorship. See Sole proprietorship or limited company Losses are allocated to the participants under the rules and can on conditions be deducted by them.
When do these forms fit?
They are still used in some industries and in collaborations between professionals, and they can be practical where two or more people run something together with a simple structure and close trust. But for a business with debt, employees, contracts or liability risk the personal exposure is heavy – and a limited company gives an entirely different starting point. See Sole proprietorship or limited company for the comparison of liability and tax. In short: in an ANS each participant answers for the whole debt. In a DA each answers for their registered share of it. In both the liability is personal. Greenleaf can keep the accounts for both and handle the partner assessment and the reporting.
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This is general guidance, not advice on your specific case. Deadlines, rates and amounts change – always check the current rules, or get in touch with us.
More on starting up and choosing a company form
- Sole proprietorship or limited company – which should you choose?
- When should a sole proprietorship become a limited company – and can the conversion be tax-free?
- How to start a limited company – step by step
- Share capital – what can the NOK 30,000 be used for?
- Contributions in kind – can a car, equipment or a business be used as share capital?
- NUF – what is it, and when does it make sense?
- Your first year with a limited company – which deadlines and tasks matter?
- The shareholders' agreement – what should it contain, and when do you need one?
- When do you need an accountant – and when can you manage yourself?
- Winding up a limited company – how to dissolve and delete it
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