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Are you going to establish foreign business activities in Norway?

Written by Nils Bernhard Nilssen | Apr 8, 2020 1:13:42 PM

The authorities in Norway set a number of requirements for anyone wishing to start a company and do business. Among other things, the statutory rules concerning your business activities depend on its scope and the business sector. Insufficient knowledge and poor planning can cause major problems and be very costly for the company if mistakes are made. Therefore, it is important to obtain a good overview of the obligations that must be attended to. Tandem AS will provide you with relevant information that must take into consideration at start-up. 

 

Norwegian business registration number and ID control

You will need your own Norwegian identity and business registration number in order to engage in business activities or hire employees in Norway. The identity number gives the business access to the services of public authorities and is required by some private actors such as banks. Identification control and registration with the tax authorities often take a long time and good advance planning will reduce unnecessary delays during the establishment phase. 

 

Choice of form of organisation

Foreign enterprises must register as a Norwegian Registered Foreign Company (NUF). The foreign company is responsible for the branch in Norway. If the foreign company is a sole proprietorship, it will also be regarded as a sole proprietorship in Norway. It is the holder of the sole proprietorship who must make advance payment of tax. 

Please note that the choice of the form of company affects the personal financial risk exposure of the owners and imposes different requirements with regard to reporting.

 

Choice of name 

There are restrictions with regard to what name a business can use. Among other things, the company name must not be confused with the names of companies or existing trademarks. To avoid encroachment on the trademark rights of others, please check availability at navnesok.no.  

 

Reporting assignments and industry permits 

Foreign companies on assignment in Norway must report their employees in the Register of Assignments and Employment Conditions. Companies giving assignments to foreign companies must report the actual assignments. Different industries also have their own special rules that the business man must deal with in order to avoid fees for a violation and sanctions in the event of missing permits.

 

Registration in the VAT register

VAT must be calculated and collected when selling goods and services on behalf of the State. There are different tax rates and requirements for the industries that are subject to registration. 

The company must be registered if business activities are carried out and have a turnover of more than NOK 50,000 over a 12-month period. VAT tax on sales may only be collected after the registration has been approved. If you are already registered, you are obliged to submit a tax return for VAT. As a registered company, you may make deductions for the purchase of goods and services for use in the company. VAT-registered companies must also calculate import VAT themselves.

 

Want to learn more about Tandem, and how we help you? Contact us