FAQ

The two most popular ways to form a company in Norway are:

The two types differ in terms of taxation, employee status and accounting.
Check our article on setting up a limited liability company in Norway
See also the article on opening a branch of foreign company in Norway

Every company that performs any kind of work in Norway is required to have a nine digit organisasjonsnummer – an organisation number. In order to receive this number one has to register the entity in Brønnøysundregisterene – The Norwegian Legal Entities Register. The most popular form for registration is a Norwgian limited liability comapny – Aksjeselskap (AS). Foreign companies often choose to register the Norwegian Registered Foreign Company– Norskregistrert Utenlandsk Foretak (NUF). One can also register sole proprietorship - Enkeltpersonforetak (ENK).

 

No – the general rule applied that in case of hiring out labour through a branch in Norway is that VAT is calculated according to the „reverse calculation” rule (snudd avregning). The company in turn needs to be registered with a contact person in order to receive an organisation number.

 

This question naturally concerns legal and not private persons. The company is obliged to register in the VAT register having issued an invoice above 50 000 NOK. Without the registration the company may not apply for VAT return.

If a company posts the employees to Norway they need to be registered in the Norwegian Tax Office with RF-1199 form. The registration of the contract has to be performed by the Client or Investor. The foreign company registers its employees posted to Norway. This registration and ID control performed in on of the designated tax offices should enable the employee to receive a temporary Norwegian personal number (Norwegian D-nummer). It is necessary for the tax office to issue a Norwegian tax card – skattekort. The form confirms that the employee works in Norway legally.

The duty to register a business entity concerns all companies working in Norway, no matter where the client’s company comes from.

According to the regulations of the Norwegian internal law, the income from work performed in Norway is taxable to Norway. Therefore, the Tax Office demands from foreign companies to pay the advancement in Norway, even though the employees come from abroad. If the employee fulfills the condition presented in the Treaty on Avoidance of Double Taxation, the Tax Office shall issue an exemption from tax payments and shall return the advancement to the employee.

Skattetrekkskonto is a bank account whose sole purpose is to pay advancement tax for your employees to the Tax Occice. This is the duty of each company/ employer to have this account and to use it according to its purpose.

The Norwegian Labour Inspection – Arbeidstilsynet, has a register of staffing agencies (bemanningsforetak). It is mandatory for hiring out labour companies to register there and hiring out labour without registration is illegal. Companies that hire out more than 50% of their staff and those who hire out staff to companies with a different type of activity to theirs.

 

Some branches of industry in Norway are legally obliged to pay minimal hourly wage. Usually the rate is changed once a year, after negotiations with the Trade Unions. The rates are announced by the Norwegian Labour Inspection (Arbeidstilsynet) on their Internet pages. The minimal wage concern: construction industry, shipyards, agriculture, cleaning companies and fishing industry.

It all depends on your judgment. Establishing a sole proprietorship Enkeltpersonforetak (ENK) does not require a share capital (minimum NOK 30,000) as in the case of the limited liability company Aksjeselskap (AS). In a sole proprietorship, the owner is personally responsible for all obligations. 

A posted employee is still hired by the company in the country of his/ her origin. He is just "moved" from his original post to work in a different geographical location. At the same time, their working conditions might change according to the receiving country's regulations. This can mean, that their wages mmight be higher according to local minimal wages, which is the case in Norway. 

You can find a lot of useful information on matters related to operating in Norway at the Norwegian Labour Inspection sites: arbeidstilsynet.no  

It all depends on the form of  employment. All employees who work for Norwegian companies - aksjeselskap (AS) are liable for taxation in Norway. 
Employees posted to Norway may be exempted from pying taxes to Norway based on the Convention on avoidance of double taxation with the country of origin. However some of the posted employees are taxable to Norway from day one of their work there. Those are hired out employees.