Cost To Start A Business In Norway
Norway is one of the most powerful economies on the planet and is ranked tenth for commercial ease of doing business. Through the implementation of business-friendly laws, the government is strongly committed to creating a climate that is welcoming to foreign investors and small local firms. However, when establishing a firm, an important thing that a businessperson must consider is the cost to start a business in Norway.
The cost for starting a business in Norway as a foreigner consists of numerous factors, such as the business registration cost, registering the business name, registering with the tax authorities, getting the license to operate the business, etc. A registration fee of about NOK 6,797 must be paid to the Norwegian Business Registry in order for a company to be registered in Norway.
This article discusses the cost for starting a business in Norway as a foreigner. Additionally, it will discuss the numerous factors that influence the cost to start a business in Norway.
Factors influencing the cost to start a business in Norway
When establishing a business, there are various factors influencing the cost for starting a business in Norway as a foreigner.
In this paragraph, we’ll talk about the cost to start a business in Norway.
- Business registration Cost– Any entrepreneur who wants t incorporate a firm in Norway has to enroll with the Register of Business Enterprises.
- Acquiring business licenses and permits– Only when a corporation possesses all of the necessary business licenses and permits, it can engage in commercial operations. However, the corporation must pay a number of charges in order to obtain business licenses and permits.
- Charges for opening a business bank account– Entrepreneurs have to create a business bank account in order to deposit the minimum share capital for a company. The bank charges a minimal amount of fees when an entrepreneur creates a bank account.
- Depositing the minimum share capital- When registering a business, the entrepreneur must deposit the necessary amount of capital. The amount of capital needed, however, varies depending on the type of corporate entity that is chosen.
- Preparing the documents– In order to register a company, various documents, such as, the articles of association have to be prepared by the firm.
- Registering for tax purposes- Entrepreneurs are required to register with the tax authorities in order to pay various business taxes. The businessperson also needs to register for VAT.
- Annual accounting expenses- It is essential to pay the annual accounting expenses.
- Government registration fees- The entrepreneur is required to pay the expected Norwegian government registration fees.
- Charges for acquiring a D-number– A request must be made at the Bronnoysund Register Center in order to obtain a Norwegian D-number. The necessary charges must be paid to obtain the D-number. A D-number is necessary to open a regional bank account and for other tax-related reasons.
- Acquiring the social security number- Expenses for obtaining social security number for international entrepreneurs must also be paid.
The registration cost to start a business in Norway
Every company that establishes a presence in Norway is needed to enroll with the Register of Business Enterprises. In order to register a company in Norway, the firm has to pay a registration charge to the Norwegian Company Registry which can be approximately NOK 5,570 (if done online) and NOK 6,797 (by post). However, the cost may vary depending on the form of legal entity that has been chosen.
Registering for tax purposes
In order to run a business in Norway, an entrepreneur will have to register with the tax authorities. According to Norwegian Tax Law, if a corporation’s yearly revenue surpasses NOK 50,000, it must enroll with the Norwegian Tax Administration for corporation tax and Value-added Tax.
According to the Norwegian Tax Administration, businesses obtaining revenue from the country are required to submit their yearly tax reports by the last working day in May of the subsequent financial year. If the timeframe is missed, a late filing penalty equal to 20–40% of the company’s taxable yearly income would be imposed, based on the severity of the offense.
Accounting cost for starting a business in Norway as a foreigner
The accounting cost for starting a business in Norway as a foreigner is an important variable that must be considered when starting a firm in the nation. When creating annual accounts, the Norwegian Accounting Act’s standards must be adhered to.
The various cost to start a business in Norway for different legal entities
The various cost to start a business in Norway for different legal entities are discussed below:
Private Limited Liability Company- Private Limited Liability Company is regarded as a separate legal entity from its stockholders or members, as such, the stockholders or members are not held liable for the firm’s debts. The required amount of share capital, including setup costs, is 30 000 NOK.
Public Limited Company– A Public Limited Company is regarded as a separate legal entity from its stockholders or members, as such, the stockholders or members are not held liable for the firm’s debts. The required amount of share capital is NOK 1,000,000.
The cost for starting a business in Norway as a foreigner
The cost for starting a business in Norway as a foreigner insoles the expenses of acquiring a D-number and the registered business address. Foreigners who are beginning businesses in Norway must enroll, register for a Norwegian identification number (D-number), and obtain a Norwegian company address. The D-number is employed to register businesses and serves as a provisional national ID for outsiders.
Conclusion
The above article discusses the cost to start a business in Norway. The cost for starting a business in Norway as a foreigner depends on different factors such as business registration expenses, registering for tax, acquiring business licenses, having a registered office address, etc. If you wish to register a business in Norway, you should be aware of the various business cost for starting a business in Norway as a foreigner.
For more queries regarding the cost to start a business in Norway, you can consult our experts at Odint Consulting. Our professionals will be delighted to answer your inquiries.
FAQ’s
- Business registration Cost
- Acquiring business licenses and permits
- Charges for opening a business bank account
- Depositing the minimum share capital
- Registering for tax purposes
- Annual accounting expenses
- Government registration fees
- Charges for acquiring a D-number
Every company that establishes a presence in Norway is needed to enroll with the Register of Business Enterprises which can cost approximately NOK 6,797.
In order to run a business in Norway, an entrepreneur will have to register with the tax authorities. According to Norwegian Tax Law, if a corporation’s yearly revenue surpasses NOK50,000, it must enroll with the Norwegian Tax Administration for corporation tax and Value-added Tax.
The required amount of share capital, including setup costs, for a Private Limited Liability Company, is 30 000 NOK. The required amount of share capital for a Public Limited Company is NOK 1,000,000.
D-number is the Norwegian identification number. It is essential as it is employed to register businesses and serves as a temporary national ID for outsiders.
