Norway Company Formation

Norway, with its stable economy, transparent legal system, and high quality of life, is increasingly attracting international entrepreneurs looking for a reputable offshore jurisdiction for Norway company formation. While not traditionally considered a tax haven, Norway offers a prestigious business environment and access to the Scandinavian market, making it an attractive option for certain types of businesses. This guide provides an overview of forming a company in Norway as a non-resident.

Norway Company Formation: A Guide for Non-Residents

Is Norway a Prestige Offshore Jurisdiction?

While not a classic offshore jurisdiction focused on tax minimization, Norway offers a high level of credibility and a strong regulatory framework. This can be particularly appealing for businesses seeking a reputable base for international operations, especially those dealing with environmentally conscious or ethically driven markets. The “prestige” comes from the country’s strong governance, robust economy, and commitment to transparency.

Types of Companies Suitable for Non-Residents in Norway

Several company structures are available in Norway, but the most common for non-residents are:

• Private Limited Company (AS): This is the most popular option. It requires a minimum share capital of NOK 30,000 (approximately EUR 3,000). An AS offers limited liability to its shareholders.
• Branch of a Foreign Company (NUF): This is an extension of an existing foreign company. It’s simpler to set up than an AS but the foreign company remains fully liable for the branch’s obligations.

Advantages of Norway Company Formation for Non-Residents

• Reputation and Credibility: Norway’s strong international reputation enhances the company’s image and builds trust with clients and partners.
• Access to the Scandinavian Market: A Norwegian company provides a gateway to the Nordic region, a wealthy and sophisticated market.
• Stable Economy and Political Environment: Norway boasts a stable economy, a well-developed infrastructure, and a predictable political landscape.
• Skilled Workforce: Access to a highly educated and skilled workforce.
• Transparent Legal System: A clear and transparent legal framework ensures fair business practices.
• Potential for Grants and Funding: Depending on the industry and location, companies may be eligible for government grants and funding.

Disadvantages of Norway Company Formation for Non-Residents

• High Operating Costs: Norway has a high cost of living and doing business, including salaries, rent, and taxes.
• Complex Regulations: Navigating the Norwegian legal and regulatory environment can be challenging, especially for those unfamiliar with the local laws.
• Language Barrier: While many Norwegians speak English, understanding and complying with regulations often requires proficiency in Norwegian.
• Taxation: Norway has a corporate tax rate of 22%. While not excessively high, it’s important to factor this into your business plan.
• Minimum Share Capital: The requirement for minimum share capital (NOK 30,000 for an AS) can be a barrier for some entrepreneurs.

What is Required for Company Registration in Norway?

The requirements for Norway company formation typically include:

• Company Name: A unique company name that complies with Norwegian regulations.
• Registered Office: A physical address in Norway for the company’s registered office.
• Business Plan: A detailed business plan outlining the company’s objectives, activities, and financial projections.
• Share Capital: Proof of deposited share capital (NOK 30,000 for an AS).
• Founding Documents: Articles of Association and other legal documents outlining the company’s structure and governance.
• Board of Directors: Appointment of a board of directors (at least one
• Board of Directors: Appointment of a board of directors (at least one member for an AS). At least half of the board members must reside in Norway or the EEA (European Economic Area). If this requirement cannot be met, a resident director can be appointed.
• Auditor: In some cases, an auditor may be required.
• Registration with the Brønnøysund Register Centre (Brønnøysundregistrene): This is the central registry for businesses in Norway.
• D-Number/Personal Identification Number: Obtaining a D-number (temporary identification number) or a personal identification number for all directors and shareholders who are not already registered in Norway.

Procedure for Norway Company Formation

The process of Norway company formation generally involves these steps:

1. Planning and Preparation: Develop a comprehensive business plan, choose a company name, and determine the company’s structure.
2. Deposit Share Capital: Open a bank account in Norway and deposit the required share capital.
3. Prepare Founding Documents: Draft the Articles of Association and other legal documents.
4. Register the Company: Submit the required documents to the Brønnøysund Register Centre through Altinn, the online portal for businesses in Norway.
5. Obtain Necessary Permits and Licenses: Depending on the nature of the business, obtain any necessary permits and licenses from relevant authorities.
6. Register for VAT (Value Added Tax): If the company’s turnover is expected to exceed NOK 50,000 within a 12-month period, it must register for VAT.
7. Register as an Employer: If the company intends to hire employees, it must register as an employer with the Norwegian Tax Administration.

Timeframe for Company Registration

The timeframe for Norway company formation can vary depending on the complexity of the business and the efficiency of the registration process. Generally, it takes approximately 2-4 weeks to complete the registration process once all the required documents are submitted.

How We May Help You with Our Professionals

Navigating the complexities of Norway company formation can be daunting, especially for non-residents. Our team of experienced professionals can provide comprehensive support throughout the entire process, including:

• Company Structure Advice: Helping you choose the most suitable company structure for your business needs.
• Business Plan Development: Assisting you in creating a compelling business plan that meets Norwegian requirements.
• Document Preparation: Preparing all the necessary legal documents for company registration.
• Registered Office Services: Providing a registered office address in Norway.
• Nominee Director Services: Offering nominee director services to meet the residency requirements for board members.
• Bank Account Opening Assistance: Guiding you through the process of opening a bank account in Norway.
• Registration with Authorities: Handling the registration process with the Brønnøysund Register Centre and other relevant authorities.
• Ongoing Compliance Support: Providing ongoing support to ensure your company remains compliant with Norwegian regulations.
• Tax Advice: Offering expert tax advice to optimize your tax position in Norway.

By leveraging our expertise, you can streamline the Norway company formation process, avoid costly mistakes, and focus on building your business. Contact us today to learn more about how we can help you establish a successful presence in Norway. We understand the nuances of the Norwegian business environment and can provide tailored solutions to meet your specific needs. Let us be your trusted partner in your Norway company formation journey.