General information
23%Tax rate- 4 weeksTime of establishment of the company
- 30 000 NOKMinimum capital
Norway is a combination of free market and government intervention. The country controls key areas, such as the oil sector which accounts for nearly half of exports and over 30% of government revenue. Norway chose to remain outside the EU in a referendum in November 1994. Nevertheless, as a member of the European Economic Area, it contributes to the EU budget. After lackluster growth of less than 1.5% in 2002-03, GDP growth accelerated to 2.5 to 6.2% between 2004 and 2007, partly thanks to oil.
Types of companies
There are several types of businesses for foreign investors:
- Limited liability company (AS)
- Branch
Limited liability companies (AS) are the most common corporate status of medium and large businesses. They are usually used by foreign companies to become established in the country.
Company registration procedure
Registration of the company:
- Preparation of articles of association and the company’s statute
- Contribution of capital to the account
- Registration of the company in the Register of Legal Persons of the Central Register Brønnøysund
Shareholders:
No restrictions on the number of shareholders, however, a minimum of one shareholder is required to establish a company. Foreign shareholders are allowed.
Management Board:
The company is managed by a Board of Directors elected by the shareholders. The Board may also appoint a Chief Executive Officer, but this is not mandatory.
Registered office:
The Company must have a registered address in Norway.
Time to set up a company:
The time to establish a company is approximately 4 weeks.
Capital:
The minimum capital is NOK 30000 and must be paid into an account within 3 months of the establishment of the company (a payment confirmation must be provided to the Register).
Taxes and finances
Norway is a country where taxes are relatively high and the corporate tax rate is 28%. The tax system is aimed at financing a range of public and social services, as well as subsidies for certain foods and other goods.
Norway does not offer any reliefs to foreign investors. However, there are tax reliefs related to expenditure on e.g. environmental protection. The Norwegian authorities also support investment in oil extraction, the technology industry, and in less developed regions such as northern Norway.
Accounting
Under standard procedures in the EU, companies must prepare and publish their financial statements every year. An annual audit is mandatory.
| Tax rate | • Income tax: 28% • Tax on capital gains: 28% • Tax on interest and royalties:0% • Tax on dividends: 0% (25% for non-residents of the EEA) • Income of foreign companies: 28% • VAT: 25% |
| Minimum capital | 30,000 NOK (3000 €, entirely paid at the incorporation) |
| Shareholders | Minimum of one associate |
| Foreign shareholders | Yes |
| Directors | Half the members of the board must reside in Norway |
| Foreign holding | Yes |
| Legal obligations | • Board of directors mandatory. Three members if the total balance is more than 3 million NOK (376,392 €) • Annual audit mandatory |
| Deadline | 4 weeks from the receipt of all documents |
| Headquarters | Business address, telephone transfer, fax, and mail. Possibility of having a physical office (prices vary depending on demand) |
| Accounting | Annual financial report, schedules, and management reporting mandatory, based on an estimated number of monthly bills and a forecast of annual turnover |
