Norway company registration

Norway is one of the world’s wealthiest, most stable countries, boasting one of the highest standards of living in the world.

Advantages of Norway company registration

    Norway business advantage
  1. If properly structured, a Norwegian company pays no tax on share dividends received from another Norwegian company. However, share dividends from foreign companies are subject to the standard income tax rate of 28%;
  2. Norway company incorporation is easy. The World Bank positively ranks Norway the world’s 6th easiest country in which to set up a business, scoring highly on factors such as: i) simple incorporation formalities and ii) ease of obtaining business licenses;
  3. International entrepreneurs choose Norway company formation because it projects an excellent image to their Clients, suppliers, bankers and potential investors. Norway is not a member of the European Union (EU), but is positively perceived as one of the world’s least corrupt countries, ranking 7th in the 2012 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians;
  4. According to IMD’s World Competitiveness Yearbook 2012, Norway is the 8th most competitive country in the world;
  5. A Norwegian company can be 100% foreign owned, and only one shareholder is required to fulfill statutory company incorporation requirements;
  6. The Forbes magazine Best Countries For Business 2011 survey ranks Norway as the world’s 8th best jurisdiction for business. The report takes into account a number of factors including personal freedom and trade freedom, for which Norway ranks number 1 and 4, respectively;
  7. While the Norwegian government offers few specific incentives for investors considering Norway company registration, expectations do exist, including tax deductions for research and development (R&D) functions in Norway’s oil industry;
  8. Healy Consultants can open a corporate bank account to support Norway company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services;
  9. Norway company can be completed in eight working days;
  10. New companies registered in Norway can take advantage of income tax incentives from Norway or the EU (investment in a new or existing production facility, revitalization of a production area, local development, R&D and in the agro-industry);
  11. Norway is accessible by land but mainly by sea, therefore businesses can utilize the most cost effective mode of transportation. Norway is ideal location for investors as it has easy to access Europe and Russia;
  12. Norway boasts a technologically advanced air, land and sea transport network, allowing quick delivery of goods and raw materials within the country;
  13. A foreign owned company can invest in almost every business sector without restriction;
  14. Norway has one free zones offering companies cheaper incorporation costs and tax advantages: Svalbard;
  15. In 2012, 96% of the population is computer literate, thus more productive employees;
  16. Norway is an excellent location to register intellectual property (IP), including global trademarks and patents. Norway is a signatory to international conventions including the World Trade Organisation’s (WTO) Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS), which helps protect against IP rights infringements;
  17. Due to Norway vast amount of natural attractions, the Norway green tourism industry is strong. Therefore, there is growth potential which foreign investors can tap into.
Close

Disadvantages of Norway company registration

  1. The minimum share capital is US$ 16,500 (NOK 100 000) for a private limited liability company and US$ 165,000 (NOK 1,000,000) for a public limited liability company;
  2. Norway company registration requires a minimum of two directors, at least one of whom must be resident in Norway. If required, Healy Consultants will provide the resident director to fulfill this statutory obligation;
  3. Norway tax

  4. A Norwegian company is subject to a corporation tax of 28% on worldwide income. Following Norway company registration, it is necessary to prepare financial statements in Norwegian for the Norwegian Register of Business Enterprises and submit an annual tax return to the Norwegian Tax Department;
  5. Norway has low unemployment and high labour costs, making recruitment more challenging than in other countries. If required, Healy Consultants helps our Clients obtain Norway employment and residence visas following Norway company formation;
  6. For specific economic activities, special authorisation is required in order to engage in the line of business. Among other sectors, this applies to:
    • accountants
    • auditors
    • lawyers
    • debt collectors
    • healthcare staff
    • the transport industry

  7. The board of director of a private limited liability company must have at least two members.
Close

Incorporation costs in Year 1 amount to €7,660 and annual company costs in Year 2 and thereafter amount to €4,150. The average fee per Norway engagement amounts to €12,550, which includes company incorporation and opening a local corporate bank account and all government fees. Refer to the invoice embedded here.

Compliance considerations

    Norway legal
  1. According to the Companies code, a Norway company must have at least one director and one shareholder of any nationality. One of the director must be resident of Norway or of the European Union;
  2. The company share capital must be deposited in the company temporary corporate bank account prior starting the incorporation; The minimum share capital is US$ 5,000 (NOK 30,000) for a private limited liability company and US$ 165,000 (NOK 1,000,000) for a public limited liability company. The company cannot be registered until all the shares have been paid and all of the shares must have the same value;
  3. The Memorandum of Association is a contract between the shareholders and comprises i) company activities ii) registered office address iii) shareholder and director details iv) share capital v) profit distribution method;
  4. Norway companies are must lodge annual return and tax return. An annual audit is required for all large companies;
  5. A private Norway company is required to maintain a local registered address;
  6. Each time a change occurs in the Memorandum of Association of the company or to its officers, the change must be lodged with the Norway companies registry;
  7. Company information such as capital structure, directorship and shareholder details are publicly available;
  8. The process of deregistering a company is dictated by the Government. This process will take a minimum of 6 months. Healy Consultants fee to project manage company de-registration is US$1450. During this 6 months period it is mandatory to maintain a resident company secretary and a legal registered office.

Recruitment in Norway

  • Recruitment of foreign labour requires the employer to justify the hiring of the foreign worker in place of European Union national. The foreign employee is expected to have professional and educational qualifications relevant to the position.
Close

Did you know about Norway?

      1. Norwegians rejected EU membership twice in referendums, but the country have implemented more EU directives than any of the actual EU member states;
      2. Norway is the world’s second-largest natural gas exporter;
      3. Norway saves state revenue from the petroleum sector in the world’s second largest sovereign wealth fund, valued at over $700 billion in January 2013 and uses the fund’s return to help finance public expenses;
      4. Grocery stores are not allowed to be open on Sundays, but gas stations and kiosks can (and they sell groceries);
      5. Norway was one of the first countries to establish a Ministry for the Environment (1972);
      6. Hydropower accounts for 99 per cent of the electricity generated in Norway;
      7. In Norway, wine and liquor is only sold in a monopoly store called “Vinmonopolet”, which translates to “The Wine Monopoly”;
      8. The Nobel Peace Prize is awarded in Oslo, Norway’s capital, every year;
      9. In Norway, education is free, even college and university education;
      10. In Norway, speeding fines are often more serious than if a person is caught with drugs;
      11. Before starting a new enterprise, an entrepreneur should draft a business plan. There is no obligation to produce such business plan, but in-depth work at this stage will increase the likelihood of the project turning out well, and will provide a better overview of the real risks in the business concept.
Close

Useful links

External readings

External videos

Contact us

For additional information on Norway company formation, you can email us at email@healyconsultants.com or phone us at (+65) 6735 0120. Address: Verpetveien 20, 1540 Vestby, Norway.