Norway Company Registration in 2023-24
Norway is one of the most preferred locations for entrepreneurs looking to establish their startups because of the numerous advantages it offers. Norway has a booming economy and a stable democracy, making it a wonderful environment to conduct commercial operations.
A wide range of businesses, including those in technology, medical, renewable energy, etc. provide several prospects for entrepreneurs who wish to launch their firms in Norway. Additionally, the Norwegian government provides several incentives to aid new business ventures.
The following article will briefly describe the Norway company registration procedure. Along with that, the article will also explain the criteria, documentation, advantages, and other related aspects of company registration in Norway.
Why should you register a company in Norway?
- Regarding GDP per capita, Norway is ranked seventh globally.
- Norway is a significant producer of oil and gas and exports the majority of its output to the international markets.
- Norway is the second-largest supplier of seafood around the globe, and the sector accounts for 2 percent of the nation’s GDP.
- Norway has a prosperous and rapidly expanding tourism sector.
- Norway has a number of free trade zones where businesses can operate.
Procedure for Norway Company Registration
In order to register a company in Norway, the following procedures must be followed:
1. Deciding the business structure
One of the first things that an entrepreneur has to fulfill for a company registration in Norway is to decide the business structure of the firm. An entrepreneur can choose a Private Limited Company(AS), a Public Limited Company (ASA), or a branch office for company registration in Norway.
2. Collect the essential documents
Gathering the essential paperwork is necessary in order to register a company in Norway. As a result, the company’s memorandum of association, written resolutions on stockholder choices concerning the organization’s formation, its commercial focus, and selection of nominee directors, must be produced.
3. Choose and reserve a business name
A business name shall be selected for the corporate, and the availability of the selected name should be confirmed with the company register.
4. File an application to acquire a D-number at the Brønnøysund Register Center
A Norwegian D-number can be acquired by submitting an application at the Brønnøysund Register Center. A D-number is essential to create a local bank account and for other taxation purposes.
5. Establish a corporate bank account
It is essential to create a corporate bank account to deposit the necessary paid-up capital of NOK 30000.
6. Register at the Register of Business Enterprises
In order to do company registration in Norway, you may register at the Register of Business Enterprises and submit all the required documents. This step can be done digitally.
7. Company incorporation
A certificate of registration and a business identification number will be provided following the Register of Business Enterprise approval.
8. Acquire the tax identification number
After Company Registration in Norway has been completed, you should acquire the tax identification number from the Tax Authorities.
Eligibility Criteria for Company Registration in Norway
1. Number of shareholders
At least one stockholder is required to establish a Private Limited Company in Norway. However, for a public LC, the number of stockholders has no upper bound.
2. Capital requirements
For an AS company, at least a capital of NOK 30000 is necessary. The base capital requirement to form an ASA is NOK 1,000,000.
3. Number of Directors
A minimum of one director is necessary to establish a partnership firm in Norway. Public LLC should have at least 3 directors. Businesses are not required to have resident directors.
Documents required for Norway Company Registration
The following documents can be used to do company registration in Norway:
- Name of the business and its activities
- Article of Association & Memorandum of Association
- Details of the stockholders and directors
- Incorporation Deed
- Statement from the auditor regarding the contributed share capital
Business structures for Norway Company Registration
In order to do company registration in Norway, the following business structures can be used by an entrepreneur:
1. Private Limited Company (AS)
Private Limited Companies are distinct legal entities and can be established by one or more individuals. Private Limited Companies are also known as Aksjeselkap (AS).
If you want to register a company in Norway for an AS, you should take the following into account:
- The firm must have a locally registered office address.
- The firm must have a minimum of 2 directors, and one of the directors must be a citizen of the European Union or Norway.
- To register a company in Norway, a minimum of one stockholder of any country is necessary.
- Minimum share capital of NOK 30,000 must be deposited in the corporate business account before you do a Norway Company Registration.
- Members of the board are required to obtain the D Number.
2. Public Limited Company (ASA)
A Public Limited Company or Allmennaksjeselskap (ASA) can also be established by one or more individuals. An ASA is permitted and authorized to offer stocks and assets to the general populace through the Register of Business Enterprises.
If you want to register a company in Norway for an ASA, you should take the following into account:
- A minimum of one stockholder of any country is necessary for a Norway company registration.
- Share capital equal to at least NOK 1 million must be deposited in the business bank account of the firm.
- A minimum of three directors are needed, of whom 2 must be Norwegian residents.
- There must be an auditor for AS.
3. Branch Office
When an international company wants to grow its presence in Norway, a branch office is established. A branch’s main objective is to assist the foreign parent company entity’s operations and income generation in Norway. The debt obligations of the branch office would be wholly borne by the parent firm.
If you wish to do a Norway company registration for a branch office, you must take into account the following factors:
- There isn’t any requirement for a minimum share capital.
- A minimum of one stockholder of any country is necessary for a Norway company registration.
- A local manager from Norway is required.
4. General Partnership (ANS)
All participants in a general partnership (Ansvarlig Selskap) are individually and jointly accountable for the obligations of the partnership. Corporate tax does not apply to ANS partnerships. Partners rather disclose their proportionate share of gains and losses on their individual tax filings.
5. Limited Partnership (Kommandittselskap)
In a limited partnership (Kommandittselskap), one or more partners (general partners) are jointly and severally responsible for the company’s debts, while the limited partners are merely accountable for a certain portion of the money they have invested.
Advantages of Company Registration in Norway
- Accessibility to the European Union marketplace is one of the main advantages to register a company in Norway.
- Norway preserves solid and admirable working relations with its neighbors. Norway’s membership in the European Free Trade Association has helped to grow a variety of commercial prospects for the country because of the significant degree of economic exposure across many nations in the region.
- Norway is home to various fintech innovative clusters and it has been steadily developing its fintech economy. These fintech centers are intended to bring together fintech entrepreneurs and inventors with a shared goal of fostering startup success. As a result, the fintech industry would offer opportunities for international investors to expand locally and incorporate effectively.
- Because of Norway’s successful track record in fostering foreign investment, it has evolved into a leading nation in a variety of fields, like marine, oil, telecommunications, and technology.
Taxation system in Norway
- In Norway, businesses must pay a 22% CIT on their net earnings. However, certain businesses in the financial industry have to pay CIT at a rate of 25%.
- Norway levies taxes on income, interests, profits, capital gains from the sale of assets, and revenue derived from overseas sources.
- Since capital gains are not subject to a separate tax, they are instead taxed at the same rate as regular income, which is 22% for corporations.
- Property taxes are imposed on real properties at the local level in Norway. The range of real estate taxes varies from 0.2% to 0.7%.
- The normal VAT rate in Norway is 25%, however, a lowered rate of 15% and 12% are applicable on certain products and services.
Cost to register a company in Norway
Formation costs total €4,475 in the first year and €1100 in subsequent years, omitting yearly accounting & taxation expenses. The typical charge for a Norwegian engagement is EUR 14,675, which covers all administrative fees, business registration, establishing a local corporate banking account, and other expenses.
Compliances for Registering a Business in Norway
- Every organization that has been established in Norway must abide by the relevant legal requirements. The following requirements must be met:
- A partnership agreement must be signed by each participant in a partnership.
- Yearly meetings are required to be convened for approving the partnership’s yearly reports and any resolutions outlined in the articles of association on a yearly basis.
- Board meetings are necessary for Private Limited Companies at least once every year. Any unique concerns have to be approved at the board meetings. If the partnership has established a board, a minimum of one meeting must be held annually for approving the yearly financial statements.
- According to the requirements of the Norwegian Companies Registry, annual filings must be completed.
Conclusion
Norway offers investors with a stable and welcoming business atmosphere and provides access to the EU, a competent labor force, and advanced infrastructure. Norway has been placed in the 9th position as per the 2019 Doing Business index by the World Bank. On top of that, Norway provides individuals with a simple and fast registration process as it takes a minimum of one director and one shareholder to form a company in the nation.
If you wish to establish a business in Norway and want assistance with company registration in Norway, you can speak with our professionals at Odint Consultancy. Our experts at Odint will help you throughout the procedure to register a company in Norway.
FAQ’s
You can register a company in Norway by filing an application at the Register of Business Enterprises along with all the required documents.
To register a private limited company, a minimum share capital of NOK 30,000 is required. However, to incorporate a public limited company, the required amount of capital is NOK 1 million.
Yes, foreigners can establish a business in Norway. However, all international enterprises must enroll as Norwegian registered foreign businesses (NUF) to obtain a Norwegian organization number. Additionally, foreign citizens who wish to establish and conduct operations in Norway must have a Norwegian D-number.
The D-number can be acquired from the Brønnøysund Register of Norway.
Norway is a fantastic place to conduct business because of its thriving economy and secure democracy. Diverse industries, such as those in technology, medicine, renewable energy, etc., offer numerous opportunities for business owners who want to establish their companies in Norway. The Norwegian government also offers a number of incentives to support new company enterprises. Hence, Norway is a favorable location for business establishment.
To incorporate a Private Limited Company (AS) in Norway, the following conditions must be fulfilled:
- The firm must have a locally registered office address.
- The firm must have a minimum of 2 directors, and one of the directors must be a citizen of Norway.
- A minimum of one stockholder of any country is necessary.
- A minimum share capital of NOK 30,000 must be deposited in the corporate business account.
- Members of the board are required to obtain the D Number.
The mandatory documents to establish a business bank account are:
- The bank’s pre-approval documents
- Business’s choice to establish the account
- Notarized copies of the business’s registration certificate
- Depending on the banks, more important documents can be requested
