Expand a business in Norway
Foreign companies willing to extend their portfolio may choose to open a company in Norway. The two most common forms of business that a foreign company may open here are the branches and subsidiaries. While the branches have no legal personality and must operate under the direct supervision of the parent company, the subsidiary may take its own management decisions and even though a big part of the capital is owned by the foreign company, the liability of the shareholders is limited by their contribution to the capital.
Tax incentives for Norwegian subsidiaries
There are many tax incentives offered to the Norway subsidiaries
. For example, if a foreign company held for more than two years at least 10 % of the subsidiary’s capital
, it may claim a tax credit in the country of residence. This is not applicable to the taxes paid to a company coming from a country unrelated to the country of origin. These are the provisions of the many double tax treaties signed by Norway
all over the years.
Incorporating a subsidiary in Norway
Prior registration in the Central Coordinating Register for Legal Entities some steps must be taken, such as opening a bank account or checking the name at the Registrar. It’s important to know that the operation is canceled if the Memorandum of Association was signed for more than three months.
One of the phases of the company registration procedure in Norway consists in opening a bank account and depositing the required minimum share capital. After depositing it, the account must receive the approval of an auditor.
Registration with the Central Coordinating Register for Legal Entities is then required. The subsidiary must submit
the foundation deeds and the articles of association. As a result, the company is receiving an organization number and may apply for registration with the Register of Business Enterprises and for the VAT number. The last step of forming a susidiary is enrolling for the pension fund and injury inssurance.
The whole registration process takes about nine working days if all the steps are respected and the documentation is properly submitted.
Opening a subsidiary as a limited liability company in Norway
Aksjeselskap, the Norwegian private limited liability company, is formed by at least one founder with a minimum share capital of 100.000 NOK. It’s adopted especially by small and medium size companies. The liability of its members is limited and the shares are not for public transfer. This type of company is not issuing certificate for its shares.
Allmennaksjeselskap, the public limited liability company in Norway, is formed especially by large corporations mostly because the minimum share capital required is 1 mil NOK.
Unlike the capital of a private limited liability company, the capital is divided into shares that can be transferred and that can be registered at the Stock Market.
In case you would like to establish a subsidiary
, a branch office or any other business form in Norway, feel free to contact
our Norwegian company formation