Foreign companies venturing into business in Norway will inevitably face Norwegian compliance, formalities, and reporting obligations. To assist you on this journey, we present nine key steps to consider when starting a business in Norway, ensuring adherence to Norwegian formalities and reporting responsibilities.
Step 1, register at the Norwegian company register
Your company will obtain a Business Register Number, which is essential to fulfill reporting responsibilities.
For more information: Register a company in Norway
Step 2, Is it necessary to registrate your company in the Value Added Tax (VAT) register in Norway?
No need to wait if your company’s Norwegian turnover exceeds NOK 50 000 (over a 12-month period). A VAT-registered entity is entitled to a refund of the input VAT on its own purchases of goods and services in the business. An early VAT-registration could give your company an important liquidity advantage.
For more information: Should your business register for VAT in Norway?
Step 3, Avoid penalty charges
By reporting contract information about your Norwegian assignment to the Tax Authorities you avoid uneccessary penalty charges.
For more information: Business in Norway - Avoid sanctions and penalty charges
Step 4, analyse and understand the contract with your Norwegian client
The distinction between a so-called “genuine subcontracts”, with product and result responsibility, and "hired labour contracts" is important – and essential for the taxability of the company and the workers.
For more information: Help with contracts
Step 5, make sure your employees are scheduled for ID-checks
Book appointments for ID-checks for your workers. Remember to bring passports.
For more information: ID control for foreign employees in Norway
Step 6, if applicable, make sure your employees have HSE-cards
Whether or not your employees requires a HSE-card depends on the nature of work. If the work takes place on a construction site, the answer is probably yes.
For more information: ID cards for building and construction sites in Norway
Step 7, are A1-forms necessary for your workers?
If your workers are working in Norway for a limited time, the answer will often be yes. The A1-form confirms that your workers are members of the Social Security Scheme in their country, which should exempt both the company and the workers from Social Security Contributions to Norway.
For more information: Norwegian National Insurance Scheme
Step 8, are your employees subect to Advance Tax Deduction?
Your employees do not need to be subject to Advance Tax Deduction in two countries at once. In Norway, it’s possible to apply for an exemption when it’s probable that the workers will avoid Norwegian taxability.
For more information: Taxes in Norway - employee taxation
Step 9, can you apply for an exemption of Norwegian Corporate tax return?
The initial requirement entails the company filling a Norwegian Corporate tax return, even in a case where there’s no Norwegian taxability. However, with effect from 1 January 2022, it is now possible to apply for an exemption for companies that don’t have a permanent establishment in Norway.
As a main rule, the workers must also file a Norwegian tax return – unless they are taxed under the new PAYE-scheme, which came into effect on 1 January 2019. In short, the workers could accept taxation at a flat rate of 25 percent (17 percent if they have filed a A1-form). If so, the tax is settled through the salary reporting and there’s no tax return to file.
More information: A brief guide to your Norwegian tax return
Want to learn more? Download our guide:
Article first published 23 October 2018 - Latest update June 2022.