How to Start and Register a Business in Norway

Business Opportunities in Norway 

Setting up a business offshore can be a great way of expanding it. If you plan to set up your business overseas, one potential business location is Norway. There are several good reasons to start a business in Norway. However, to ensure it’s hassle-free, you must follow the country’s rules and regulations.

With 27 million people scattered across the country and a growing GDP of USD 1.8 trillion, Norway is a lucrative location for setting up a company. The massive population and rising economy can help you target the desired audience and expand your business. The economy of Norway is a combination of a free market and government intervention. So, the nation maintains a wonderful balance and welcomes more startups to promote economic growth.

According to the report of Ease of Doing Business 2020, Norway bags the sixth position. Besides, the Norwegian government and authorities consider foreign investors equivalent to domestic ones. This is because their primary purpose is to make the economy of this Scandinavian country thrive and reach the zenith. However, foreign businesses face challenges such as high living costs and strict labor laws, which require careful planning and local partnerships to navigate effectively. Entering the Norwegian market needs some knowledge about company registration in Norway, as provided below.

Benefits of Starting a Business in Norway 

The advantages of doing business in Norway are listed below: 

Strong economy 

Norway’s stable and robust economy makes it a suitable location for doing business. With a GNP per capita of 765.836 NOK, Norway has the highest standard of living. So, you can expect to get customers and a target market suitable for your business. 

Member of EEA 

Although Norway is not a part of the European Union, it is included in the EEA agreement. This implies that Norway is equivalent to the EU countries. So, Norway’s rules, regulations, and legal compliances are similar to the EU countries. 

Efficient banking service 

For foreign investors, the banking system of Norway is efficient and meets all business requirements. The steps for setting up a company bank account is uncomplicated. 

Tax incentives 

Businesses in Norway have to pay a corporate tax of 22%. However, some exceptions depend largely on the economic sector and geographical region. Expenses on research are tax deductible. Businesses in the northern part of Norway pay less worker tax. Companies within the financial business sector are subject to a higher tax rate of 25%.

Rise in foreign investment 

The government of Norway fosters foreign investment in the hope of enhancing its economy. In the last decade, the number of foreign investments in Norway has experienced a hike. Foreign-owned businesses provide 20% of the country’s employment. Again, 25% of Norway’s economic value is generated from international businesses. 

Requirements for Starting A Business in Norway 

The requirements to do business in Norway are mentioned below:

Visa and work permit 

People belonging to any Nordic country or if they are a member of the EEA or EU do not require a work permit. Other countries need a Norway work visa, provided you submit the job application. While the Norway work visa will allow you to enter the country, its residence permit or work permit will authorize you to work in Norway. 

After the visa application submission, it will take you almost two months to process. You can only start working after the approval of your visa. The Norway work visa will cost you NOK 6,300. The validity of this work visa is two years. However, you can extend its validity by applying for it before its expiry. 

Company name

For business name registration in Norway, these are the factors to keep in mind: 

• Choose a unique name that has no similarity to other business enterprises registered in the Register of Business Enterprises in Norway. 
• The company name should have at least three Norwegian letters. 
• Opt for trademark protection with the Norwegian Industrial Property Office to protect the business’s name. 

Company address 

The address of your company should be in Norway. No postbox address will be considered valid. The format of stating the address is as follows: 

• Street or road 
• House number 
• Postcode 
• Postal town 

Business capital 

The business capital required for a business to do in Norway depends on the type of business structure you adopt. A sole proprietorship and partnership business will require no minimum capital. But, in the case of private and public limited liability companies, you have to pay NOK 100,000 and NOK 1 million, respectively. Again, for a branch office, you have to pay a minimal fee of NOK 2,832. 

Accounting and tax obligations

All Norwegian businesses have to pay a corporate tax. This tax is calculated based on a company’s earnings in Norway. 

Director and company secretary 

The number of shareholders varies from one company to another and depends on the type of business entity you establish. There can be unlimited shareholders in private and public LLCs. For partnership businesses as well, the number of partners can be unlimited.

There has to be at least one director for a partnership company and a private limited company in Norway. On the other hand, a public limited liability company should have at least three directors. In the case of corporate assembly, five directors are required. Having a dedicated and experienced team is crucial to ensure compliance and proper management throughout the process.

Types of Business Structures in Norway 

Before offshore company registration in Norway, it is crucial to figure out the different business structures operating in the country. These are pointed out below: 

Sole proprietorship 

• Can be registered under commercial legislation
• The complete liability of the entrepreneur
• 15 years minimum age requirement
• No residency requirements
• Must have a Norwegian business address 

Private limited liability 

• Norwegian private limited company (AS) is a popular and practical choice for foreign entrepreneurs.
• Must have a share capital of NOK 100,000
• Limited liability of shareholders
• Non-transferable shares
• Most suited for small or medium businesses
• Must pay a corporate tax of 23% in two installments
• Dividends must pay a tax of 30.59% on the sum
• Liable to VAT for companies with a yearly turnover of NOK 50,000
• 25% standard VAT

Public limited liability 

• Based on higher share capital
• Transferable shares
• Must have a minimum share capital of NOK 1 million
• Limited liability of shareholders
• Can be registered by legal entities or natural persons
• A founder must be at least 18 years
• Must have a physical business address

Partnerships 

• Based on company assembly 
• Registered by the Register of Business Enterprises 
• The agreement should contain the company name, partners’ address, capital investment, headquarters address, and company role. 
• No minimum share capital required 
• Can be divided into general partnership and limited partnership 

1. A general partnership must have two active owners 
   • Unlimited liability of company debts on the owners 
   • Two or more partners form limited ownership 
   • Can have both silent partners with limited liability and active partners with unlimited liability 

Branch offices

• No minimum share capital required
• Must be registered under the Register of Business Enterprises
• Must pay a fee of NOK 2,832
• The parent company should provide these documents:

1. Company registration certificate and a copy of the parent company’s certificate – Article of incorporation and memorandum of association of the parent company

• Name of people responsible for branch office
• Address of branch office
• Recorded time when the decision to open a branch office was taken

Additionally, establishing a Norwegian Branch of a Foreign Company (NUF) offers advantages for foreign entrepreneurs, such as simplified legal structure and reduced administrative responsibilities.

The steps to incorporate a company in Norway are given below:

Steps to Register a Company in Norway

Registering a company in Norway involves several steps that must be completed in a specific order. Here’s a step-by-step guide to help you through the process:

1. Choose a Business Structure: The first step is to decide on the type of business structure that suits your needs. The most common types of business structures in Norway are single-person business (ENK) and private limited company (AS). Each business structure has its own set of requirements and benefits, so choose the one that aligns with your business goals.
2. Register with the Norwegian Register of Business Enterprises: Once you’ve chosen your business structure, you need to register your company with the Norwegian Register of Business Enterprises (Brønnøysund Register Centre). This can be done online or through a paper application. Registration is a crucial step as it officially recognizes your business in Norway.
3. Obtain a Norwegian Business Address: You’ll need to provide a Norwegian business address as part of the registration process. This can be a physical address or a virtual address, but it must be a valid Norwegian address. This address will be used for official correspondence and is a requirement for all business enterprises in Norway.
4. Open a Corporate Bank Account: You’ll need to open a corporate bank account with a Norwegian bank or finance company. This account will be used to manage your company’s finances, including receiving payments and paying taxes. Having a corporate bank account is essential for the smooth operation of your business.
5. Register with the Norwegian Tax Administration: Finally, you’ll need to register your company with the Norwegian Tax Administration (Skatteetaten) and obtain a tax identification number. This step is necessary for fulfilling your accounting and tax obligations in Norway. The tax identification number will be used for all tax-related matters.

By following these steps, you can ensure that your company is properly registered and ready to operate in Norway.

Step 1: Business planning

First and foremost, you must set up a business plan and choose a suitable business entity that ensures the right business structure for your company.

Step 2: Obtaining D-number

All foreign investors should acquire a D-number to establish a business in Norway. This is a temporary identity number. To get this, apply at the Bronnoysund Register Center. This D-number will help you to open a bank account in your company’s name. 

Step 3: Choose the company name and address 

Select a unique company name without connection to an existing Norwegian business. The business address should be a Norwegian one. 

Step 4: Submitting relevant documents 

After depositing the required fee, you will get a receipt from the bank. Along with this receipt, submit the application form, article of association, memorandum, address proof, work permit copy, and all details about shareholders and directors to the Norwegian Register of Business Enterprises.

The registration and documentation processes are crucial to ensure compliance with Norwegian regulations.

Step 5: Opening corporate bank account

Now, you need a corporate bank account for business transactions.

Additionally, having a local registered office address is a requirement for business registration in Norway, ensuring compliance with local regulations.

Step 6: Tax registration 

Register your company with the Norwegian Tax Administration for a TIN or Tax Identification Number. 

Post-Registration Requirements

After registering your company in Norway, there are several post-registration requirements that you need to comply with. These include:

Compliance with Norwegian regulations

You’ll need to comply with all relevant Norwegian regulations, including those related to employment, tax, and health and safety. This means adhering to the laws and guidelines set by Norwegian authorities to ensure your business operates legally and ethically. Regularly reviewing and updating your compliance practices is essential to avoid any legal issues.

Annual reporting obligations

You’ll need to submit annual reports to the Norwegian Register of Business Enterprises and the Norwegian Tax Administration. These reports will include financial statements, tax returns, and other relevant information. Timely and accurate reporting is crucial for maintaining your company’s good standing and avoiding penalties. Make sure to keep track of all deadlines and requirements for annual reporting.

Maintaining company records

You’ll need to maintain accurate and up-to-date company records, including financial records, meeting minutes, and other relevant documents. These records must be kept for at least 10 years. Proper record-keeping is not only a legal requirement but also a good business practice that helps in managing your company efficiently. Ensure that all records are organized and easily accessible for audits or inspections.

By following these steps and complying with post-registration requirements, you can ensure that your company is properly registered and compliant with Norwegian regulations. This will help you build a solid foundation for your business in Norway and pave the way for future growth and success.

How Much Does It Cost to Incorporate a Company in Norway? 

The cost of incorporating a company in Norway varies and largely depends on the type of business entity you establish. You do not need any share capital for sole proprietorship and partnership businesses. However, in the case of private and public limited companies, you need a minimum capital of 100,000 NOK and 1 million NOK, respectively. To set up a branch office, you have to pay a fee of NOK 2,832. All limited companies operating in Norway must register in The Register of Business Enterprises and provide the required documentation, including proof of share capital and, in specific cases, supplementary forms for trade licenses.

Are Foreigners in Norway on Certain Passes Allowed to Start a Business in Norway? 

Yes, foreigners can start a business in Norway, provided they have a work visa and a work permit. People belonging to countries apart from the Nordic nations, the EEA, and the EU need work visas and permits. To apply for a Norway work visa, you need the following:

• A valid job offer
• A work permit

A work permit in Norway is valid from one to three years. However, it can be extended three months before its expiry. All immigration tasks in Norway are handled by the Norwegian Immigration Authorities. The other essential documents include the following:

• Two passport-size photographs
• Confirmation of travel insurance
• A copy of the flight ticket
• Proof of sufficient financial resources
• Proof of accommodation during the whole stay
• Civil status proof

Foreign businesses are subject to the same tax obligations and registration requirements as local companies.

You get grants for starting a business in Norway. The popular governmental and non-governmental schemes that stand by businesses and startups are as follows:

• Innovation Norway aids startups in two phases. In the first phase, it provides 50,000 NOR, and in the second phase, businesses get 100,000 NOR. However, this grant value depends on the complexity of your business.
• StartUp Labs helps businesses with funding, development, and extensive networking.
• LeanVenture promotes innovative IT-based business models and aims at better digitalization in Norway.

Norwegian business incorporation can be daunting, especially if you are unaware of the country’s compliances. With by your side, you don’t have to consider taking the wrong step. We help you set up your business and expand your company all over the globe.

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