Starting a Business in Norway as a Foreigner: Requirements and Process 

• Norway is famous for its strong economy, better quality of life, as well as business-friendly atmosphere. For foreign business owners, the country provides a transparent and regulated system for business registration as well as operations. Starting a business in Norway as a foreigner has become a recent trend, and more and more people are looking to opt for registering company in Norway. If you are an EU/EEA citizen or live outside of Europe, Norway offers a wide number of opportunities for the growth of a business and its expansion. The following blog offers a step-by-step approach to starting ess in Norway as a foreigner and covers registration, taxation, and permits.  

Is It Possible for Foreigners to Start a Business in Norway? 

• Yes, foreign entrepreneurs can easily start a business in Norway however, there are specific business requirements and procedures they need to follow. Norway is famous for its stabilized economy, friendly business policies, and openness to foreign investment, which makes it an attractive destination for business owners. Here are some main considerations: 

D-Number 

• Foreign business owners without a Norwegian national ID number should get a D-number for identification purposes when registering for their business.  

Residency permit  

• Non-residents of EU/EEA countries will require a residence permit that enables them to work in Norway. This is compulsory for running a business, you can apply for a resident permit through the Norwegian Directorate of Immigration (UDI).  

Minimum share capital  

• For limited liability companies in Norway, the minimum share capital amount is NOK 30,000.  

Norwegian business address 

• To operate a company in Norway, a physical address in Norway is needed. It is compulsory for all entrepreneurs to have a physical office in Norway.   

Business Structures Available in Norway 

• Here are some common business structures available in Norway for opening a company.  

Aksjeselskap (Private limited company) 

• This structure refers to a private limited company where the liability of the shareholders is limited to their share capital. In this entity, the board of directors has full control over the manager, and the general manager follows his day-to-day responsibilities. At least 50% of the board of directors should be the residents of Norway/living in EEA. Lastly, this structure is common for SMEs because of liability protection as well as operational flexibility.  

Enkeltpersonforetak (Sole proprietorship) 

• In this structure, the owner has unlimited liability, and it is the simplest structure with nominal formalities. The profits in this entity are taxed as personal income and are suitable for freelancers with growth ambitions.  

Allmennaksjeselskaps (Public limited company) 

• This entity is a public limited company where shareholders are not personally liable. The minimum capital requirement for this structure is NOK 1,000,000 and it should have a board with a good gender balance, at least 40% individuals of each gender, as well as employee registration for large companies. It is best for large enterprises looking for public investment and stock exchange listing.  

Samvirkeforetak (Corporation) 

• This structure is similar to a Corporation in the USA, and the liability of the members is limited to their contribution in the capital. This entity has a democratic control that is one member has one vote. It is taxed at corporate rates unless it is exempt from specific cooperative laws.  

Norwegian registered foreign company 

• In this structure, the parent company is fully liable, and it also requires a Norwegian business address along with registration as a brand. The profit in this entity is taxed unless there are certain exemptions under tax treaties. It is best for foreign companies to create a temporary presence in Norway.  

Business Registration Procedure in Norway 

• For starting a business in Norway as a foreigner, you will need to go through a business registration process. Here are some key steps of this process: 

Select a business structure 

• Based on the type of your business activity, select a business structure that is most appropriate. You can select from the multiple types of business structures mentioned above.  

Prepare documents  

• For public and private limited companies, you need to prepare articles of association and share capital deposit confirmation from the bank or auditor.  

• For a Norwegian foreign company, you will require a recent foreign registration certificate that is less than 3 months old, along with board election records.  

• For a sole proprietor business, you will need a certified ID copy.  

D-number 

• If you are a foreign entrepreneur and do not have a Norwegian ID you need to apply for a D-number. The application for D-number should be submitted to the Brønnøysund Register Centre. You also need to include certified ID copies.  

Registration procedure  

• Sole proprietorship– For sole proprietorship with a D-number, you will have to register through Altin’s “Coordinate register notification”, and without a D-number, you need to submit other forms titled “Simplified register notification”.  

• Private limited company– If yours is a private limited company, you need to transfer NOK 30,000 to a Norwegian bank account. You also need to file a “Coordinate register notification” with the copies of articles of association, details of director and shareholders, along with a bank confirmation letter.  

• NUF registration– You need to submit a “Coordinate registration notification” and an NUF form along with your foreign registration certification as well as declarations of acceptance for managers.  

Tax compliance  

• You need to opt for tax ID registration, which is compulsory for all entities through the Norwegian tax administration, along with VAT registration if your annual turnover is more than NOK 50,000.  

Post registration requirements  

• In Norway, a physical office is mandatory, along with a manager who should be a resident of the country. Lastly, the business should comply with Nigerian Generally Accepted Accounting Principles (NGAAP) for preparing financial statements.  

Requirements for Taxation and Accounting 

Corporate tax 

• The corporate tax rate is 22% for most businesses, and for financial institutions, it is 25%. The non-resident companies are taxed on the basis of worldwide income, and non-residents are taxed on Norwegian-sourced income.  

VAT 

• The standard VAT rate is 25% for most businesses, and for food and beverage companies, the rate is 15%. VAT returns are usually filed quarterly or monthly.  

Financial reporting 

• The financial records must adhere to NGAAP standards, and for large companies, it is compulsory to have regular audits, and for small companies, simplified reporting is enabled.  

Conclusion  

• For a foreigner, it is rewarding to start a business in Norway with the right preparation. By choosing the appropriate business structure, registering your company properly, and getting the necessary permits, you can easily establish and grow your business. While there are challenges like regularity barriers along with high operation costs, they can still be reduced with effective strategic planning and support from the local businesses. If you want to start a small business or expand into a larger enterprise, you must go through Norway’s company registration process. For help in the business registration process, contact Tetra consultants, and our team will assist you in starting a company and will handle all the paperwork on your behalf.  

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