Registration of a company in Norway

Norway is one of the most developed European countries where you can enjoy the benefits of doing business. It has skilled labour workforce and offers the secured legal environment for business in general. This is a short profile of this country. You may need to be aware of it at the time of consideration of options for establishing your future company abroad.

Major Forms of Business Presence in Norway

If you want to establish your business presence in Norway, you may do this in one of the following ways:

• Limited Liability Company (AS) – a vehicle where founders (shareholders) do not bear any liability for the entity’s debts and obligations. To start a business in this form, you may require creating a statutory capital in the amount of NOK 30,000 (around EUR 3,500). You need to have at least 50 % of the board composed of Norwegian or EU/EEA residents. This type of vehicle ensures more security and convenience for doing business.
• Public Limited Company (ASA) – a vehicle suitable for large businesses mostly. A minimum amount of the statutory capital of NOK 1 million (around EUR 112,000) is required for establishing this type of company. As in the case with AS, you need to form a board of Norwegian or EU/EEA residents for at least 50 %.
• Privately Owned Company (ENK) – this is the second most popular type of vehicle in Norway that is privately-owned by a certain person. Consequently, the founder bears sole liability for all entity's undertakings. This type of business is far less expensive and is usually operated by one person only. It is some kind of equivalent to a sole proprietorship.
• Norwegian branch of a foreign company (NUF) – the form may be suitable for testing business opportunities in Norway only.

Incorporation Requirements and Steps

If you choose Norway as your target jurisdiction, you need to pass these preliminary steps:

1. Defining your business priorities.
2. Selecting and verifying the business name for a future entity.
3. Choosing your registered address.
4. Collecting information about founders and beneficiary owners.
5. Forming the composition of the company’s governing bodies and obtaining D-numbers (identification numbers) for non-residents.
6. Opening a bank account for depositing the amount of the statutory capital in full.
7. Preparing statutory documents for a future company.
8. Submitting registration documents along with registration forms to the Norwegian Register of Business Enterprises.
9. Registration for tax purposes, particularly, obtaining a Tax Identification Number (TIN). Obtaining a VAT-number is required if you sell VAT-related services and goods and your turnover exceeds NOK 50,000.
10. Registration for social security purposes.

These steps are preliminary as each registration procedure is individual and may vary on a case-by-case basis.

Legal and Regulatory Framework

The legal framework of Norway is very transparent with a strong emphasis on AML compliance. Obtaining licenses and special permits may be required for certain types of activities. In the case with the company formation, the main legal acts regulating this process are the Public Liability Companies Act, the Limited Liability Companies Act and the Register of Business Enterprises Act. All companies are obliged to carry out the obligatory audit each year, except for small entities.

Advantages of the Jurisdiction

If you finally decide to establish a company in Norway, you may enjoy among others these advantages:

• Strongly-developed economy
• Very high standards of the quality of life
• Experienced and skilled employees
• Environment encouraging innovations and technologies

Tax System

Here are principal highlights of the local tax system:

• Corporate income tax (CIT) rate – 22 % (25 % for certain types of financial activities)
• Personal income tax (PIT) rate – 22 %
• VAT rate – 25 %
• Withholding tax rates (for non-residents) – (i) dividends – 25 %, (ii) royalty – 0 %, and (iii) – interests – 0 %
• Capital gains tax rates – (i) corporate – equal to the normal CIT rate, (ii) individual – equal to the normal PIT rate.

How Aotopay Specialists May Help You

If you consider an option of company formation in Norway or any other country, Aotopay specialists may consult you about all advantages and help in overcoming potential difficulties that may arise. Our specialists may help you choose the most appropriate tax regime, register a company in Norway, and open its corporate bank account. Aotopay may help you to resolve any other matters that may potentially arise. Reach us shortly for more precise discussions via email or phone.