Norway Company Formation

Introduction to Registering a Company in Norway

Although Norway is not a member of the EU it is a member of the EEA (European economic area). Registering a company in Norway is an effective option for both resident and non-resident companies as it gives unrestricted access to the EU market through the EEA agreement.

Norway is a highly developed country with a strong economy and progressive government that promotes open polices. These policies have proven effective in attracting overseas investment through Norway Company Formation, allowing the country to become a global leader across various industries such as maritime, energy, communications and technology. Norway is the third-ranked country by nominal GDP per capita (approximately 75,389 US$) and few countries can beat Norway when it comes to quality of life.

With a flat corporation tax rate of 24% the business climate is easy to navigate and Registering a company in Norway is straightforward provided you comply with the formalities. The most commonly used structure for small and medium businesses is a Norwegian Private Limited Company.

EuroCompanyFormations.com can assist you with every step of the company formation process. Please contact us for further details today.

What are the main company types in Norway?

The three most popular forms of corporate structure in Norway are as follows:

private limited company (AS)
public limited company (ASA)
branch office of a foreign company

What are the main features of a Norweigan private limited company?

Multinational companies usually choose a Norweigian private limited company structure.

most popular format for small and medium businesses
minimum share capital 30,000 NOK (€3500 approx.), fully paid up
at least one shareholder; board of directors required
50% of board members must be resident in Norway or in a EU/EEA country

What are the main features of a public limited company?

standard format for large companies
minimum share capital is 1m NOK (€112,000), fully paid up
at least one shareholder; board of directors required
50% of board members must be resident in Norway or in a EU/EEA country
board members must apply for Norwegian D Number (personal identification number)

How easy is it to set up a branch office in Norway?

A foreign company may establish a branch in Norway provided that the foreign company is registered in its home country. Companies residing outside the EU area must obtain permission from the Minister of Industry. The branch must be registered in the Register of Business Enterprises.

To what extent is Norway a high-tax country?

Norway imposes high rates of tax on individuals – the higher rate of personal income tax is more than 53% – but companies are treated more leniently. There is a flat rate of 25% on all capital income and in addition, Norway provides a full dividend credit. This means it has the lowest combined dividend tax rate in the OECD.

Are there any restrictions on foreign investment in Norway?

Generally speaking, the Norwegian government places foreign investors on an equal footing with domestic investors, but there are exceptions where the authorities feel the country’s strategic interests would otherwise be threatened. For example, foreigners may own no more than 40% of a Norwegian fishing fleet. Foreign ownership of a Norwegian air transport company is restricted to 30% but the all-important oil sector is now largely free of restrictions for international investors.

How easy is it to recruit staff in Norway?

Norway has low unemployment (4.1% 2015 est) and high labour costs, a combination that can make recruitment more difficult than in many other countries. There is a shortage of workers in certain sectors such as construction, but there are recruitment agencies throughout the country and we will be happy to refer you to our network of local recruitment specialists. It is worth noting that there are restrictions on bringing in foreign personnel from abroad. Obtaining work permits, particularly for semi-skilled workers, can be problematic, so please contact us for further information and assistance.

What is the regulatory environment like?

Norway has eased its regulatory regime significantly in recent years. Foreign exchange controls were largely abolished in the early 1990s and profits and dividends can be freely repatriated subject to Central Bank reporting requirements. All companies have to file accounts with the Register of Business Enterprises and a statutory audit has to be carried out each year, with some exceptions for smaller companies.

Are there financial incentives available?

Norway offers no significant general tax incentives for either domestic or foreign investors but there are exceptions for specific regions and industrial sectors:

companies investing in Norway’s far north pay lower employee taxes
tax rates are minimal on the Arctic island of Spitzbergen
a state fund provides grants for investment in areas of low employment
tax deductions are allowed for research costs in key sectors such as oil

And what about banking facilities?

Norway’s financial sector is highly advanced and well attuned to the needs of international investors, but opening a bank account can be a bureaucratic challenge. Please get in touch to see how we can assist you in obtaining a corporate bank account with no travel required.

How can I get more information about Norway Company Formations?

For more information about registering a company in Norway please contact us our team of would be pleased to discuss your business needs in greater detail.