July 12, 2022
Norway is most certainly one of the most prosperous economies in Europe, and perhaps even globally. But is this really a good market to invbest in? Is setting-up a branch in Norway an easy process? Why should you choose a branch instead of a limited company - Aksjeselskap, AS?
As an authorized accounting offcie in Norway with more than 20 years of experience, we might be able to give you some clues as to where you should start and what may be the best option for your company.
As an authorized accounting offcie in Norway with more than 20 years of experience, we might be able to give you some clues as to where you should start and what may be the best option for your company.
Norway - a country with low surprise factor
Norwegians don't tend to be spontaneous. Business activities are well planned and discussed before any work has begun. Thorough planning in Norwegian companies is not an exeption. The country's legislation is well thought through and stable. Norwegians trust their authorities and the authorities share the same atittude towards the citizens.
In business, Norwgians tend to rely on the subcontractors they can trust as well. This is a market where testimonials and references come handy. Once the subcontractor or business partner in Norway has delivered his work on time and with no obstacles, they stand a great chnance of getting anoher assignment. So how can you start a business and become a part of the Norwegian market? One of the two most popular forms of business activity, is a branch of foreign company in Norway, so called: NUF.
In business, Norwgians tend to rely on the subcontractors they can trust as well. This is a market where testimonials and references come handy. Once the subcontractor or business partner in Norway has delivered his work on time and with no obstacles, they stand a great chnance of getting anoher assignment. So how can you start a business and become a part of the Norwegian market? One of the two most popular forms of business activity, is a branch of foreign company in Norway, so called: NUF.
How to open a branch of your company in Norway?
- Every company operating in Norway is required to register their activity. Find out more about the
registration form of business in Norway here: - Even though the company just posts their employees to Norway and the employment status is still valid for the country of origin, they are also required to be registered with the Norwegian Tax Office (Skatteetaten). All foreign employees in Norway must also go to one of the designated local tax offices once everytwo years for an ID-control.
- Have a closer look at the contract before your company starts the registration process. There are two types of contracts that the Norwegian client registers with the tax office: hire out labor and fixed-price. The type of contract is crucial when it comes to tax liability of the company and its employees.
- Norwegian VAT-Register: Only branches with fixed price contracts are required to register in the VAT-Register once they have issued an invoice of more than NOK 50 000. There are some
- A1 forms or social security payments to Norway: if your company is located in one of the EU countries, you can get a confirmation from your local social security institution that the contributions are paid there. Then the A1 form is registered with the Norwegian authorities. If your country is not a member of the EU, or you cannot receive A1 form for your employees, you will probably pay the social security contributions to Norway.
- Each company should analyse their situation in Norweay individually. NUFs are required to send a Norwegian Corporate Tax Report. However, there can be more registrations and other requirements to be fulfilled.
- Convention on Avoidance of Double Taxation between Norway your country of origin. According to the convention the Norwegian Tax Office decides whether the branch and your employees should be taxable to Norway.
- HSE cards (HMS-kort), All employees, including foreign employees posted to Norway in the construction and cleaning industries are required to have this id-card on them.
- Minimal wages. In some industries there are minimal wages that your employees should receive. there are also other conditions on remuneration that have to be met.
The requirments and procedures may seem to be a bit much. Our clients who own a branch in Norway or have a Norwegian company are stisfied with their activities in the country of fjords. Contact our experienced team and see if Norway is a place for your company to thrive!
office@novum.no
Take a look at our article onLimited Liability Companies in Norway.
Take a look at our article on
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