DOING BUSINESS IN NORWAY IN 2023
For over a decade, Healy Consultants Group PLC has been efficiently and effectively assisting our Clients with i) business registration ii) business licensing iii) Norway business banking solutions iv) Norway resident director services v) visa options and staff recruitment strategies and vi) registering legal offices.
|Comparison of different Norway entities||Tax resident LLC||Fast business setup solution||Free zone LLC||Branch office||Foundation|
|Also known as||Aksjeselskap||Aksjeselskap||Aksjeselskap||Utenlandsk Foretak||Stiftelse|
|Best use of company?||All products and services||Close a customer deal now||Manufacturing and export trading||Specific projects||Asset management|
|How soon can you invoice Clients/sign sales contracts?||5 weeks||1 week||5 weeks||5 weeks||5 weeks|
|How soon can you hire staff?||5 weeks||1 week||5 weeks||5 weeks||5 weeks|
|How soon can you sign a lease agreement?||1 week||1 week||1 week||1 week||1 week|
|How long to supply corporate bank account numbers?||2 months||4 weeks||2 months||2 months||2 months|
|How long to supply company registration/tax numbers?||5 weeks||3 weeks||5 weeks||6 weeks||6 weeks|
|Corporate tax rate on annual net profits?||25%||25%||16%||25%||25%|
|Limited liability entity?||Yes||Yes||Yes||No||No|
|Government grants available?||No||No||No||No||No|
|Government approval required for foreign owners?||No||No||No||No||No|
|Resident director/partner/manager/legal representative required?||Yes||Yes||Yes||Yes||Yes|
|Minimum paid up share capital?||€3,044||€3,044||€3,044||None||€11,000|
|Can bid for Government contracts?||Yes||Yes||Yes||Yes||No|
|Corporate bank account location?||BNP Paribas||Citibank||Bank Norwegian||DNB||Instabank|
|Can secure trade finance?||Yes||Yes||Yes||Yes||No|
|VAT payable on sales to local customers?||25%||25%||25%||25%||None|
|Average total business set up engagement costs?||€19,285||Request a proposal||Request a proposal||€11,850||Request a proposal|
|Average total engagement period?||3 months||2 months||3 months||3 months||3 months|
Norway business setup summary
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Advantages and disadvantages
Advantages of Norway company registration
- It is easy to setup a new business in Norway because:
- A new company can be incorporated in the country within 1 month. Also, there is no requirement for our Clients to travel to Norway to meet the registrar;
- There is no requirement for the company to appoint resident shareholders. Consequently, the company i) can be held by a sole shareholder and ii) can be 100% foreign owned;
- Therefore, Norway is ranked as the 25th best jurisdiction in the world for setting up a new business in the World Bank’s annual Doing Business Survey.
- Our Client may enjoy limited tax benefits by registering a Norway company including:
- 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;
- New companies may also take advantage of income tax incentives enlisted in the EU rules (investment in a new or existing production facility, revitalization of a production area, local development, R&D and in the agro-industry);
- Norway has one free zone (Svalbard) which offers companies certain benefits including i) 100% VAT exemption ii) 100% duty exemption and iii) low corporate tax rate of 16%;
- If properly structured, there is no withholding tax levied by the government on dividends paid by a Norwegian company to its EEA parent company;
- As a result, Norway is ranked as the 11th most competitive jurisdiction in the world in accordance with the 2019 IMD World Competitiveness Scorecard.
- There are certain miscellaneous advantages to setting up a Norway company including:
- A Norway company projects an excellent image to their Clients, suppliers, bankers and potential investors. Furthermore, Norway is one of the world’s least corrupt countries, ranking 5th in the 2018 Corruption Perceptions Index by Transparency International;
- 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;
- Norway has high literacy and computer literacy rate. Therefore, our Clients will be able to rely on extremely skilled employees when working in the country;
- Due to large number of natural attractions, the Norway green tourism industry is strong. Therefore, the tourism sector represents massive growth potential and our Clients may benefit from tapping into this sector;
- Thus, Norway is ranked as the 15th best jurisdiction in the world for “doing business” by the Forbes magazine. Independently, the World Bank also ranked the country as the 9th best jurisdiction for conducting business.
- Norway has a stable economy:
- Norway economy enjoys huge volumes of trade income due to its natural resources as well as its stable economy;
- Norway has a wide social safety network along with a booming private sector.
Disadvantages of Norway company registration
- The minimum share capital is NOK30,000 (€3,044) for a private limited liability company and NOK1,000,000 (€10,325) 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.
- According to Norwegian Institute of Public Health, 17.05% of its inhabitants were 65 years and older in 2018. The proportion for the same is expected to multiply in the coming years, which might translate into an issue for businesses to hire local labour force in Norway;
- It is not easy for businesses in Norway to get credit from banks, which is confirmed by the 94th rank for ease of getting credit (out of 190 countries) in the 2020 Doing Business rankings published by the World Bank.
- It is easy to setup a new business in Norway because:
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;
Useful links for Norway
Government and public authority websites:
- KPMG – Norway country profile
- PwC – Norway Transparency report
- Doing Business in Norway
- VAT Summary – Norway