Norway is one of the countries of the Scandinavian Peninsula, located in the northwestern part of Europe. The eastern neighbor is Sweden; northeast Norway shares the border with Finland and the Russian Federation. The area of the state territory is about 385 thousand km2.
The stability of the economic and political situation are the main factors that affect the investment attractiveness of the country. Therefore, more and more entrepreneurs are seeking to register a company in Norway.
About a quarter of all foreign companies registered in Norway are involved in the sale and rental of real estate. Also, the fish processing business in Norway is very profitable. Another type of successful company in Norway is travel companies or entertainment centers.
Business forms in Norway
Business in Norway is constantly growing and developing. Registration of a company in Norway is possible in the following forms:
- Limited Liability Company;
- Public corporation;
- General partnership;
- Branches and subsidiaries of the company;
- Limited Liability Partnership.
The most popular form of business in Norway is LLC.
Subsidiary companies in Norway
Foreign entrepreneurs most often decide to open a subsidiary or a branch of their firm in Norway. This form of activity has many financial advantages, among which are the absence of authorized capital and a relatively small registration fee.
Besides, the subsidiary operates like a usual Norwegian company, which means that it has the same rights and obligations as Norwegian firms. If the income of the representative office does not exceed the threshold of 5 million kroons, then the company is not required to undergo an audit. In addition, the subsidiary also does not have to report its annual turnover to the Accounting Register of Firms.
Registration of a subsidiary company in Norway
To register a representative office of a foreign company in Norway, you must send a completed form to Brønnøysundregistrene, along with the relevant documents (translated into Norwegian):
- Memorandum and Articles of Association
- Extract from the register of companies in the country of registration
- Name and address of the main office of business
- Organizational and legal form
- The decision on the establishment of a branch, selection of the manager/director of the branch
- Power of attorney (if you have it)
- The decision on the appointment of the board of directors (if you have it)
- Name, address, the field of activity of the subsidiary company
- If the board of directors of the subsidiary is appointed – the names, addresses, and dates of birth of the members of the board, as well as similar information about the director of the subsidiary
- Signatures, names, and dates of birth of persons authorized to make decisions on behalf of the subsidiary company
The next step is to provide the company with an organizational number, which is nine digits long. It allows, in particular, to open a bank account, or to employ an employee. The entrepreneur also uses this number to contact the IRS. The organizational number must be indicated on all company documents.
You can also register with other registries using the form mentioned above. Below is a list of institutions where you can register using this form:
- Register of employers and employees (NAV – AA Registeret)
- Register of enterprises and organizations (Foretaksregisteret)
- Register of VAT payers (Merverdiavgiftsmanntallet)
- Register of firms and enterprises of the Norwegian Bureau of Statistics (Statistisk sentralbyrås Bedrifts- og foretaksregister)
- Register of funds (Stiftelsesregisteret)
- Registry of limited liability companies of the Norwegian Tax Directorate (Skattemanntallet for etterskudds-pliktige).
The Register of VAT Payers contains a list of companies that are required to pay VAT. This obligation arises when the turnover of the company exceeds 50,000 kroons. Foreign companies without a registered office in Norway are only eligible for registration in this register with the help of a representative from Norway (a company or private person registered in Norway).
Every company that does business in Norway must be registered with Foretakregistret. It does not only apply to individual entrepreneurs who employ less than 5 workers and do not resell goods. The costs associated with registration with Foretakregistret depend on the legal form of the entity and the method of registration.
All changes that have occurred in the company must be registered using the company registration form. The form does not need to be sent to all registries separately, because they are linked and inform each other about the changes that have occurred.
Small business taxes in Norway
As in most European countries, in Norway, entrepreneurship plays a large role in the country’s economy. The main income is taxes and trade of companies. Also, commercial organizations provide additional jobs for the population.
Consider the main taxes in the country and fees for entrepreneurs: Income tax – 28%.
- Tax collection – 25%.
- The reduced rate is 15% if the business is related to public transport and 12% if the business is related to culture or sports.
- Fish production occupies a special niche. For example, trade in crabs or other seafood – 10%.
- The social sphere is not taxed at all.