Company registration in Norway

Norway is a realm of fjords and auroras borealis, which is what lures capitalists, irrespective of their domicile. Here, infrequent abrupt shifts in fiscal circumstances occur. Moreover, the infrastructure is exceedingly advanced and the mercantile ambiance is propitious. Incorporating a corporation in Norway, one secures entrée to abundant geologic endowments, adept craftsmanship, and auspicious markets.

Basic information about Norway

Norway is a dominion of dichotomies. Situated in the occident of the Scandinavian Peninsula and upon myriad isles bathed by the Boreal Sea, the Norwegian Barents Sea, and the Atlantic Ocean. Its orography is marked by towering ranges, profound fjords, and impenetrable woodlands. It is these sylvan and geological splendors that allure myriads of wayfarers annually.

Norway's population is about 5.4 million people and is concentrated mainly in coastal areas. Norwegians are famous for their high standard of living, social security and respect for nature. They adhere to traditional values, but at the same time are open to everything new.

Norway is a ceremonial monarchy with a representative form of governance. The realm possesses a steadfast political structure and an elevated quality of existence. Norway's economy is predicated on the petroleum sector, yet other domains such as angling, naval construction, and hydraulic power are also vigorously advancing.

Advantages of registering a company in Norway

Norway is a country that has enormous potential for business development within its borders. Let us highlight the main advantages and their features:

• stable economy, since the country is famous for its low inflation rate and reliable currency;
• high standard of living, due to excellent social infrastructure and good education;
• entrée to the European domain owing to the circumstance that Norway is a constituent of the European Economic Zone.
• support for entrepreneurship, as the state is constantly developing special programs and offering benefits for beginning businessmen;
• elevated quality of life of the denizens, distinguished by substantial purchasing potency of the populace;
• abundant natural endowments — Norway possesses petroleum, methane, hydroelectric power, and other terrestrial assets, which proffers copious prospects for capital infusion;
• exquisitely proficient labor force — Norwegians exhibit an augmented degree of education and expertise.

When selecting a nation for your enterprise, Norway does not invariably hold a preeminent standing. However, upon scrutinizing all the merits, you will unearth advantageous alternatives for establishing a corporation in this realm.

Top development areas in Norway

The traditional strong sectors of the Norwegian economy include:

• oil and gas industry;
• maritime industry;
• energy;
• technology sector;
• tourism;
• educational services;
• business services.

Norway is one of the largest oil and gas exporters in the world. Accordingly, companies that produce, transport and process hydrocarbons have good prospects. This country is also famous for its developed shipbuilding and fishing. Companies involved in shipbuilding, marine technology development, and seafood production and export can expect stable demand. Norway is actively developing renewable energy sources such as hydropower and wind power. In addition, companies operating in this area can receive government support and investment.

Norway is zealously allocating capital towards technological enterprises, especially within the realms of fintech, biotechnology, artificial intelligence, and cybersecurity. The nation’s escalating appetite for eco-conscious innovations furnishes prospects for corporations engaged in the creation of sustainable commodities and services. The country’s singular topography and opulent heritage allure sojourners, whilst its elevated intellectual capital may entice enterprises proffering virtual pedagogy and linguistic curricula, potentially solidifying a niche within the commercial sphere.

Norway is actively developing its technology sector, especially in areas such as:

• FinTech: Thanks to its stable financial system and active digitalization, Norway is an attractive location for fintech startups. The development of innovative financial products and services, such as payment systems, digital banks, etc., is very profitable;
• GreenTech: Given Norway's focus on environmental sustainability, there is great promise for companies developing and implementing green technologies. This could be generating renewable energy, developing environmentally friendly materials, or creating solutions for sustainable agriculture;
• HealthTech: Norway is known for its high level of healthcare, which creates a favorable environment for the development of medical technologies. Development of medical devices, healthcare software and digital health management solutions may be promising areas.

It is also worth paying attention to tourism and hospitality, especially the following segments:

• Ecotourism: Given Norway's beautiful nature, developing eco-friendly tourism can be very profitable. The organization of hiking, cycling, water tours and other active recreational activities, as well as the creation of environmentally friendly hotels and campsites are promising areas.
• Cultural tourism: Norway is rich in cultural traditions and historical monuments. Organizing cultural tours, creating museums and galleries, and developing event tourism can be interesting business ideas.
• Gastronomic tourism: Norwegian cuisine is becoming increasingly popular. Opening restaurants offering traditional dishes and locally produced products, as well as organizing food tours can be successful projects.

It is worth paying attention to educational services:

• Language schools: Thanks to the growing interest in Norwegian language and culture, opening language schools can be a lucrative business.
• Online education: the development of online courses and platforms for distance learning is a promising area due to the growing demand for flexible education formats.
• Educational consultation: Helping international students enroll in Norwegian universities and adapt to a new environment can be a sought-after service.

Consulting and business services are also a promising niche for development:

• Sustainability consulting: helping companies achieve their sustainability goals is a sought-after service in Norway.
• Legal services: specialization in legal services for foreign companies and investors is a promising direction.

To choose the most promising direction for yourself, you should take the following steps:

• conduct a thorough market analysis;
• draw up a plan according to which you will develop your business;
• prepare the necessary documents;
• find reliable partners;
• use government support.

Study the demand, evaluate the competition and choose a niche in which your company can stand out. Then start developing a detailed business plan with clear goals and strategies. Complete the documents. First, register your company and obtain all necessary permits and licenses. Additionally, it is also worth maintaining cooperation with companies and organizations that are represented on the local market - this will help you quickly adapt to the market and avoid mistakes. Use government support.

Important factors when choosing a field of activity also include:

• wisdom and erudition – select a domain that is intimately aligned with your predilections.
• quantum of capital infusion – gauge the requisites for financial outlay to inaugurate your enterprise.
• competition - study which companies are already working in your chosen niche, evaluate their strengths and weaknesses, analyze how you will be better for the consumer;
• regulation - find out about existing regulations in your chosen area.

Engaging in commercial collectives and colloquia may facilitate domain discernment and foster prosperous advancement. Assimilating into indigenous ethos and market fluctuations is imperative for triumph.

Step-by-step registration guide

Despite the fact that Norway is a country that places high demands on doing business on its territory, registering a company here will not be difficult. To do this you need:

• determine the organizational and legal form;
• develop constituent documents;
• open a bank account;
• register in the register of legal entities.

Required documents and permits

The package of documents required for legal details in Norway is standard. Necessary have:

• founders' passports;
• decision to establish a company and appoint a director;
• director's documents;
• documents confirming the legal address of the company;
• company charter;
• articles of association;
• document confirming payment of the authorized capital.

The role of the notary and registrar

These workers are also needed to authenticate signatures on constituent documents and certify them.

Registration deadlines

Registration in Norway may take some time. Clear deadlines depend on the workload of government agencies and the complexity of the procedure. On average, this period ranges from several days to several weeks. But no matter what decision the authorities make, be sure to receive notification of their decision. If any problems arise during registration, be sure to receive recommendations on how to correct them in order to successfully re-request.

Norwegian company law

Norwegian law provides significant flexibility when choosing a company structure and conducting business. Company Law protects the rights of shareholders by establishing transparent rules for corporate governance. Company directors are personally responsible for their actions and decisions. And companies are required to disclose certain information about their activities through regular reports.

Obligations of progenitors and overseers

Proprietors and overseers of enterprises in Norway shoulder disparate magnitudes of accountability.

The responsibility of the originators is typically circumscribed to the quantum of the endowed capital they imparted. Conversely, managers are individually accountable for their deeds and resolutions that could precipitate detriment to the corporation or its debtors. Managers bear an obligation to function in the paramount concerns of the corporation and to eschew acts that may induce it to incur impairments. Moreover, they are answerable for any illicit deeds perpetrated by them on the corporation’s behalf. They are mandated to discharge their responsibilities in consonance with the statute and the corporation’s constitution.

Launching a startup in Norway: main types of Norwegian companies

Norway's affluent economy and propitious business milieu render the selection of the appropriate legal configuration paramount for initiating an undertaking in this frigid nation.

Main types of Norwegian companies

The modalities of conducting commerce predominantly hinge upon its magnitude—on the extent of the proprietor's sway, endowment capital, and so forth. Its principal configurations encompass:

• joint stock company;
• limited liability company;
• individual entrepreneurship;
• cooperative.

The characteristics of a joint-stock corporation are that it is the most prevalent structure for extensive enterprises and conglomerates. It is marked by malleability in governance and the capacity to enlist a considerable multitude of stakeholders through the issuance of stock certificates. Apposite for grandiose undertakings necessitating substantial capital infusion. Affords an elevated degree of safeguarding for the principals' patrimony. It is prudent to opt for this alternative if one intends to procure extrinsic funding, execute an initial public offering, or establish an expansive corporation. Nominal share capital— SUFFICIENT 1,000,000 (85,530 EUR).

A limited liability corporation is akin to a collaborative stock corporation, but with diminished empowered capital stipulations. Frequently utilized for petite and modest enterprises. Entices with condensed registration and administration compared to a collaborative stock corporation. Advised for those seeking to establish a modicum enterprise, yet concurrently unequivocally demarcate the competences of its progenitors. The minimum equity capital is NOK 30,000 (2566 EUR). Such a corporation may possess 1 proprietor and 2 executives.

Solitary entrepreneuring constitutes the most rudimentary manifestation of commercial endeavor, wherein the proprietor and the establishment are synonymous entities. It entails scant formalities in administration, alongside trifling fiscal obligations. Ideal for diminutive enterprises where the possessor bears complete accountability for all undertakings of the establishment. In this scenario, no stipulated minimal endowment of capital exists.

Whereas a cooperative assumes a democratic form of organization, where management is carried out by members of the cooperative. Actively used in agriculture, consumer goods and other industries. Suitable for companies focused on cooperation and joint achievement of goals.

Incentives for setting up companies in Norway: an in-depth overview

Norway actively supports entrepreneurship through incentives for starting new companies. Let's take a closer look at each of the mentioned categories.

Subsidies and financing

At the initial stages of running your business, it is important to receive additional support. To this end, we recommend that you consider the following options in more detail:

• Innovation Norway, a state institution, extends financial support for nascent innovation endeavors for fledgling ventures, petite and moderate-scale enterprises, and substantial corporations via subsidies, credits, or capital infusions.
• The Research Council of Norway (Forskningsrådet), which funds research projects aimed at developing new technologies and products. There are programs for cooperation between universities and business.

Innovasjon Norge provides funding, consulting, networking and community building, information and opportunities to participate in international projects.

Innovasjon Norge proffers capital for pioneering ventures, export augmentation, and transnational collaboration. It dispenses counsel, networking, and informational assets for nascent enterprises. The organization further engages proactively in cosmopolitan undertakings to fortify Norwegian commercial entities' worldwide market standing.

Innovasjon Norge supports a wide range of innovative projects in various industries, including:

• technological innovation - from the development of new technologies to the provision of certain services;
• creative industries: development of creative industries such as design, fashion, music and cinema;
• export: support for the export of Norwegian goods;
• international cooperation: promoting cooperation between Norwegian companies and foreign partners.

Whereas Forskningsrådet aims to finance research, develop research infrastructures, promote innovation and international cooperation, and popularize science.

Forskningsrådet provides grants for a wide range of scientific research, from basic to applied. This includes support for both individual scientists and large research projects. Forskningsrådet invests in the creation and development of modern research infrastructure such as scientific laboratories, research centers and computing resources. The Council supports innovative projects aimed at commercializing research results and developing new products and services. Forskningsrådet is actively involved in international research projects and programs, promoting the integration of Norwegian science into the global scientific community. It also popularizes science among the general public, supporting educational programs and events.

Forskningsrådet supports research in a wide variety of scientific fields, including the natural, technical, humanities and social sciences, as well as medicine and sanitation care, and ecological preservation.

Economic Development Zones

Norway has regional development funds that provide financial support and advice to local companies. And also in some regions of Norway, free trade zones have been created that offer tax incentives for foreign entrepreneurs. And in order to interest them even more, they additionally offer a more simplified registration procedure.

Training and Consulting

Norway has many business incubators and accelerators that provide aspiring entrepreneurs with access to mentors, funding and networking opportunities. Public and private organizations offer a wide range of consulting services for entrepreneurs.

How to find a suitable support program?

To find a suitable support program, we recommend starting with the following organizations:

• Innovasjon Norge is a national agency that supports innovation and business development in Norway;
• Lokalt næringsliv is a network of local business centers that provide information on local business support;

In order to choose the best option for yourself from all the offers on the market, you need to do the following: stages:

• select a program based on basic parameters;
• prepare a business plan in which you clearly outline your business idea, target audience, financial forecasts;
• apply: Applications are typically made online through the foundation's website. In the application you must provide information about your company, business plan, as well as other documents that may be required;
• wait for your application to be assessed: your application will be reviewed by the foundation's expert commission. Evaluation criteria may vary by fund, but typically consider the project's innovativeness, growth potential, job creation, and alignment with the fund's priorities;
• expect a decision: after evaluating the application, the foundation will decide whether to provide funding or other types of support.

It is also worth taking a closer look at business incubators and accelerators. Business incubator is an organization that provides aspiring entrepreneurs with physical space, access to infrastructure, and mentoring and advice in the early stages of business development. Then as an accelerator — an intensive program with a focus on rapid growth and scaling of existing startups. Accelerators typically provide short-term programs that include mentorship, investment, and access to a network of contacts.

How to find a suitable incubator or accelerator?

There are many business incubators and accelerators in Norway. To find the right one for your project, we recommend:

• use online platforms: platforms such as F6S, Startup Genome and Dealroom offer extensive databases of business incubators and accelerators around the world, including Norway;
• contact regional development funds, as they often cooperate with business incubators and accelerators, and therefore can provide you with up-to-date information and recommendations;
• attend industry events: participation in conferences, hackathons and other events related to your industry will allow you to meet representatives of business incubators and accelerators;
• ask for recommendations: Reach out to your contacts who are already working in the startup space, or to mentors who can recommend a suitable incubator or accelerator.

The following organizations recommend starting work with incubators or accelerators:

• Oslo Innovation Cluster is one of the largest business incubators in Norway that focuses on technology startups;website: https://tomorrowshow.com/oslo
• StartupLab Bergen is an accelerator in Bergen that supports startups in various industries;website: https://startuplab.no/
• Nordic Edge Innovate is an accelerator specializing in sustainability startups;website: https://www.nordicedgeexpo.org/programme
• Antler is a global accelerator based in Norway that invests in early-stage technology companies;website: https://www.antler.co/

Business incubators and accelerators can greatly improve your chances of success by providing you with the resources, knowledge, and support you need.

WITHLegislation regulating business in Norway

To avert the commencement of company registration in Norway with the obligation to remit penalties, and likewise to prognosticate the probability of such obligations emerging thereafter upon the initiation of your enterprise in this realm, we advise that you initially acquaint yourself with the principal juridical codifications that govern commerce:

• the economic code – the fundamental statute that institutes the overarching tenets of engaging in commerce, the protocols for the formation and dissolution of juridical persons, as well as the method for consummating and enforcing agreements;
• competition law – proscribes anti-competitive accords and the exploitation of a preeminent stance within the marketplace;
• environmental protection statute, which institutes the accountability of corporations for inflicting damage upon it;
• consumer statute, which delineates stipulations for the caliber of commodities and services;
• labor codex – outlines labor affiliations between employers and workers;
• fiscal codex, regulates the taxation paradigm in Norway and delineates impost rates on earnings, value augmentation, personal revenue, and other varieties of duties.

If you are not ready to study all these nuances on your own, it is worth having an employee on staff who is responsible for these tasks.

Company taxation

Norway's fiscal regime is one of the most elevated in the globe. However, there exist tax concessions and inducements for extranational enterprises.

• for making a profit - 22%.
• VAT - 25%.

Accounting

Norway has a strict accounting and reporting system. To provide for the possibility of receiving fines, each company undertakes to introduce accounting according to international financial reporting standards (IFRS).

Basic requirements:

• companies record all information electronically;
• Every year companies must prepare financial statements and submit them to the tax authorities;
• large companies conduct annual audits.

Registering a company in Norway is a serious step, so knowledge of corporate law, tax legislation and other aspects of doing business in Norway will allow you to avoid many problems and successfully develop your business in this northern country.

Features of doing business

Norway's stringent commercial governance obliges enterprises to procure authorizations and credentials prior to initiating undertakings, with particular paperwork stipulations contingent on the nature of the endeavor.

Obtaining activity permits

If your company plans to build or reconstruct facilities, a building permit will be required. If the company's activities may cause a negative impact on the environment, then environmental permits must be obtained. And if your company collects and processes personal data, you must obtain appropriate permission.

Hiring and Labor Laws

Norwegian labor legislation is distinguished by a high degree of social protection for workers. When hiring employees, you need to consider the following features:

• trade unions play an important role in Norwegian society and are actively involved in collective bargaining negotiations;
• vacation and sick leave - Norwegian law provides for long vacations and paid sick leave;
• working hours - there are restrictions on working hours and overtime;
• equal opportunities - Norway places great emphasis on equality in the workplace. Discrimination based on gender, race, religion is prohibited.

Opening a bank account

This procedure is relatively simple, but requires the collection of a certain package of documents.

What documents needed?

• valid ID of the director;
• constitution;
• registration certificate;
• decision on the appointment of a director.

Having collected the list of necessary documents, you then need to follow the following algorithm of actions:

• select a bank;
• visit the bank;
• pass identification;
• select account type;
• get a bank card and PIN code;
• activate online banking.

There are many banks in Norway, each with their own conditions and fees. It is recommended to compare offers from different banks to choose the best option for your individual requirements.

It is important to have on hand not only the original documents, but also their copies in sufficient quantities. Please ensure that all documents are valid and translated into Norwegian or English.

Then make an appointment at the bank of your choice. During the meeting, you will be required to complete an account opening application and provide all required documents. Next, the bank employee will check your documents and identify your identity.

Depending on your needs, you can choose a checking account, a savings account, or another type of account. After opening an account, you will receive a bank card and PIN code.

Please note that most Norwegian banks offer online banking. This is very convenient, since all financial transactions can be carried out online. In turn, bank employees undertake to provide you with clear information on how to properly activate it and further use the benefits of this additional service.

Note: Some banks may check your credit history before opening an account. For this reason, you may be refused to open an account in a particular bank. This point is also important to consider before submitting documents.

To simplify this process, it is worth collecting all the documents in advance and checking their validity periods. And before visiting the bank, be sure to carefully study the information about it on its official website. If you have any questions, do not hesitate to ask the bank staff.

Norway proffers a multitude of financial institutions for commercial provisions, with curation predicated upon enterprise magnitude, transaction magnitude, and pecuniary prerequisites.

• DNB Bank, Norway's preeminent financial institution, offers an extensive array of services for commercial prosperity, encompassing offices, automated teller machines (ATMs), and accessible digital banking. Official website: https://www.dnb.no/en
• Nordea, a principal Northern European financial institution, furnishes all-encompassing commercial resolutions such as transnational remittances, mercantile credit, and fiduciary offerings across myriad sovereignties. Official website: https://www.nordea.com/en
• SpareBank 1, a provincial banking consortium, furnishes a heterogeneous array of commercial services such as crediting, capital allocation, and indemnity, distinguished for its bespoke methodology and market acumen. Official website: https://www.sparebank1.no/nb/nord-norge/privat.html

Online registration: myth or reality?

In Norway, it is possible to register companies online. The Brønnøysund Register Center portal allows you to apply for company registration electronically. However, some procedures still require personal appearance or notarization of documents.

To understand all the nuances of registering a company in Norway, as well as to simplify the process of running your business more easily, you should seek help from specialists. YB CASE will help you collect and correctly execute all documents, and also offers business support.