BUSINESS IN NORWAY
Owning a business in Norway is the best option for effective investment in a country with a thriving economy and a flexible legal system. And according to local laws, foreigners can conduct business activities both remotely and directly in the country.
It is true that in the first case, in order to settle business matters with various services, you will have to do joint business with a Norwegian partner or hire a trusted person among the locals.
Despite the fact that Norway has chosen to remain outside the European Union, the country is an active participant in foreign trade relations. The main share of exports is directed to the UK, Germany and the Netherlands.
Norway is rich in natural resources, with particularly large oil and gas reserves. In particular, the oil sector provides about 9% of the country's jobs and accounts for almost 40% of all exports.
Due to the global problems of recent years, in terms of falling energy prices, the Norwegian government is taking additional measures aimed at the development of entrepreneurship.
For example, favourable taxation mechanisms are being introduced in regions with a low level of industrial production and weak investment activity. The development of innovative and high-tech projects is strongly encouraged. Loans are provided on favourable terms.
In the annual rating of the Doing Business agency on the ease of opening and doing business Norway ranks 9th out of 190 countries and 2nd among European countries. This is a strong enough argument in favour of business immigration to this northern country.
In addition, an entrepreneur from abroad has the opportunity to take with him close family members, for whom there are great prospects of employment in Norway and education in Norwegian universities. Next we will talk about how to open a business in Norway to a foreigner.
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How to start a business in Norway
Unlike many European countries, Norway gives full freedom to foreign entrepreneurs to choose the sphere of activity and do business on a par with locals. The main thing is to comply with legal norms and rules, and not to violate the law. The only restriction is related to the need to obtain special permits or licences in certain industries.
At the stage of developing a business idea, which later turns into a business plan, it is very important to gather sufficient information about the Norwegian market. In most cases, you will need to seek the help of local experts – accountants, auditors, lawyers and consultants. This will help to get an objective assessment of the prospects for the future company in Norway.
Regarding business culture in Norway. Social equality based on trust between business partners, employers and employees is considered a priority value. Co-operation and mutual respect allows employees in Norwegian companies to maintain a high level of productivity and motivation. Initiative and independent decision-making are encouraged.
Citizens from countries outside the European Union will need a residence permit for business immigration to Norway. If it is planned to conduct business on a permanent basis and take a direct part in its management – this is a prerequisite.
Requirements for foreigners to obtain a residence permit in Norway for business purposes
The business must be of a long-term nature.
Employment is permitted only in the company's own company and in a position with the skills of a skilled worker.
The projected pre-tax profit must be at least 25,000 euros per year. If the business requires it, special permits or licences must be obtained from the local authorities.
Relevant education, confirmed by a university diploma or a long period of professional activity.
The application for a residence permit is submitted through a special website of the Norwegian Department for Foreigners – UDI. Usually the permit is issued for one year, with the right to renew. After three years, it is possible to obtain permanent residence and subsequently Norwegian citizenship.
Business (company) registration procedure in Norway
Obtaining a national identification number (ID), and in case of short-term business activity (up to 6 months) a temporary D-number. This is done through a special website www.brreg.no.
Payment of the minimum amount of authorised capital in a Norwegian bank – 30 thousand kronor (about 2,750 euros). Usually a popular online resource www.dnb.no – is used for this purpose.
Registration in the register of commercial enterprises. It is allowed to submit documents both electronically through the official website and by regular mail. In the first case the cost of services is 5,570 CZK (510 euros), in the second case 6,797 (625 euros). At the same time with this procedure, a VAT payer's certificate is issued. In case of annual turnover over 50 thousand kronor (4,585 euros) this is a mandatory requirement.
Registration with pension and social insurance funds.
Forms of ownership for business in Norway
One of the most important steps in setting up a business in Norway is choosing the form of ownership. This will determine the degree of personal responsibility of the businessman, risks, level of taxes, financial costs, other rights and obligations. Therefore, at this stage you cannot do without the help of Norwegian specialists.
Popular forms of ownership for a company in Norway
Individual entrepreneur. The main criteria are an age of 18 and full personal liability for the company's obligations. There is therefore no need for authorised capital. Norwegian residency is not required to open, but the registered office must be Norwegian.
If the entrepreneur provides services and is not engaged in wholesale or retail trade, and there are no more than 5 employees, registration in the register of commercial enterprises is not mandatory. The identification code is assigned by the Central Coordination Register of Legal Entities, where registration is free of charge.
Limited Liability Company (LLC). The minimum requirements for the authorised capital are 30 thousand kronor (about 2,750 euros). Prior to registration in the commercial register, shareholder contributions must be confirmed by an auditor or specialised financial institution. Liability for the company's obligations is equivalent to the contributions to the authorised capital. Electronic registration is allowed.
Partnership. Provides for joint business of several entrepreneurs, both individuals and legal entities. There are no minimum requirements to the authorised capital. Partners have unlimited liability for the company's obligations. Very often a special agreement (partnership) is concluded, which specifies the degree of responsibility of each person in proportion to the contributions. The head office of the company must be located in Norway, but permanent residence is not required.
Taxes in Norway
All companies doing business in Norway are required to keep accounting records and submit annual financial statements together with the tax return.
Payment of tax liabilities is made in advance payments during the year. The deadlines for different forms of ownership may differ. For example, individual entrepreneurs are required to make advance payments 4 times a year, and for LLCs monthly from January to September.
Rates of main taxes in Norway in 2024
Corporate tax – 22% (from 1 January 2019).
Income tax – progressive rate of up to 17.6% (annual income over 1,350,000 kronor), plus a basic tax of 22%.
VAT. General rate of 25%. Reduced rates – 15% (food and beverages), 12% (cultural and sporting events, passenger transport, hotel accommodation and other) and 11.11% (supply of fresh fish).
Business destinations in Norway
When choosing a business area in Norway, you should first of all familiarise yourself with the industries that require permits. Not always local authorities issue licences to foreigners. Here are the main ones:
- Agriculture and forestry
- Oil and gas extraction
- Fishing and hunting
- Construction and building works
- Wholesale and retail trade
- Car repair
- Information broadcasting sphere
- Public catering
- Health care and education
- Real estate operations, financial and insurance services
If the need for a licence is not an obstacle on the way of a business immigrant, it is worth paying attention to the most profitable, but at the same time competitive industries: oil and gas sector, fishing, shipbuilding and real estate. Otherwise, the flight of fancy is limited only by the law.
As in other developed countries, the IT and high technology sector is booming in Norway. If we are talking about smaller cities than Oslo or Bergen promising option may be a small business, such as a cafe-bar, beauty salon or fitness club. Even a small population can provide a good profit. It is known that the income level of the inhabitants of Norway is one of the highest in the world.
Business visa to Norway
To carry out business activities in Norway, foreigners from third countries need to obtain a business visa. This procedure is directly related to the granting of a Norwegian residence permit. That is, the issuance of a residence permit practically guarantees a visa in your passport.
The application for a visa (residence permit) is submitted through the official website of the Norwegian Department for Foreigners UDI. There you can also pay the visa fee and reserve a time to submit additional documents to the Norwegian Consulate.
