Norway is one of the world’s wealthiest, most stable countries, boasting one of the highest standards of living in the world.
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Advantages and disadvantages
Advantages of Norway company registration
- 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%;
- Registering a company in Norway 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 subsidiary company registration formalities and ii) ease of obtaining business licenses;
- International entrepreneurs choose to register a Norway company because the country 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, ranked 5th in the 2014 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians;
- According to the IMD’s World Competitiveness Yearbook 2014, Norway is the 10th most competitive country in the world;
- Starting a Norway company does not require our Clients to find a partner, as the company can be i) 100% foreign owned and ii) incorporated with a sole shareholder;
- The Forbes magazine Best Countries For Business 2014 survey ranks Norway as the world’s 7th 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;
- While the Norwegian government offers few specific incentives for investors considering Norway business registration, expectations do exist, including tax deductions for research and development (R&D) functions in Norway’s oil industry;
- Healy Consultants’ company registration specialists can open a corporate bank account for the company. Healy Consultants works with internationally recognized banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services;
- Registration of a Norway business can be completed in eight working days;
- Starting a business in Norway also allows our Clients New companies to 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);
- 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;
- Norway boasts a technologically advanced air, land and sea transport network, allowing quick delivery of goods and raw materials within the country;
- A foreign owned company can invest in almost every business sector without restriction;
- Norway has one free zone (Svalbard) offering companies cheaper incorporation costs and tax advantages;
- In 2012, 96% of the population is computer literate, thus more productive employees;
- 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.
Disadvantages of Norway company registration
- The minimum share capital is US$16,500 (NOK100 000) for a private limited liability company and US$ 165,000 (NOK 1,000,000) for a public limited liability company;
- Company registration in Norway 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;
- A Norwegian company is subject to a corporation tax of 28% on worldwide income. Following Norway business 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;
- 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;
- For specific economic activities, special authorisation is required in order to engage in the line of business. Among other sectors, this applies to:
- Debt collectors;
- Healthcare staff;
- The transport industry.
- The board of director of a private limited liability company must have at least two members.
Best uses for a Norway company
- 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;
- Time to incorporate: Five weeks
- Cost to set up: €10,175
- Minimum capital: €3,000
- Physical office required: No
- Shareholders: 1
- Directors: 2
- Company secretary: No
- Resident director: Yes
- Corporate tax rate: 27%
- Corporate tax base: Worldwide
- Shelf companies: No
- Main company type: AS Company
Frequently asked questions
How to register a new business in Norway?For registering a company in Norway, our Client will be required to i) reserve the company name ii) supply a Norwegian office lease agreement iii) sign the company setup forms iv) register for tax and social security and v) obtain required business license(s). Our company registration specialists know perfectly how to register a company in Norway and will assist our Clients at every step.
How to register a company if I do not have anybody to appoint as a resident director in Norway?Healy Consultants can provide our Clients with nominee resident director services at a competitive price. Please contact us for further information.
Useful links for Norway
Government and public authority websites:
- KPMG – Norway country profile
- PwC – Norway
- Doing Business in Norway
- VAT Aspects of Doing Business in Norway