
Expand a business in Norway
Foreign companies willing to extend their portfolio may choose to
open a company in Norway. The
two most common business forms that a
foreign company may open here are the
branch offices 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
large part of the capital is
owned by the foreign company, the
liability of the shareholders is limited to 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 holds
at least 10% of the subsidiary’s capital for at least two years, it may
claim a tax credit in the country of residence and these regulations are available under the provisions of the numerous
double tax treaties signed by Norway with a wide range of partner countries.
Our team of specialists in company registration in Norway can provide full assistance on the
tax system applicable to a
Norwegian subsidiary.
Incorporating a subsidiary in Norway in 2022
Prior to the registration with the
Central Coordinating Register for Legal Entities some steps must be taken, such as
opening a bank account or
checking the company's name at the Registrar. It’s important to know that the operation is canceled if the memorandum of association was signed with three months prior to this procedure and
our team of specialists in company registration in Norway can provide further information regarding this matter.
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. The
name of the subsidiary must be unique so it must be checked first at the
Register of Business Enterprises in Brønnøysund.
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 will receive an organization number and may apply for registration with the
Register of Business Enterprises and for the
VAT number. The prerequisites for
VAT registration in Norway are prescribed under the VAT Act. The law provides for the conditions applicable to both local and foreign companies, as well as to individuals who operate as sole traders and who can voluntarily register for this tax. In addition, they can obtain various benefits, such as VAT refunds.
The last step of
forming a subsidiary in 2022 is enrolling for the
pension fund and
injury insurance, necessary procedures when
hiring employees in this country. The whole
registration process takes approximately 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
Usually, a
subsidiary is formed as a
limited liability company which can be either
private or public.
Aksjeselskap, the
Norwegian private limited liability company, is formed by
at least one founder with a
minimum share capital of NOK 30,000. It’s generally preferred 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 may not issue certificates for its shares.
Those setting up subsidiaries in Norway in 2022 must also be aware of the tax implications of this legal form, as well as the accounting requirements that must be fulfilled during a financial year.
Allmennaksjeselskap, the public limited liability company in Norway, is formed especially by large corporations mostly because the minimum share capital required is NOK 1 million. Unlike the capital of a private limited liability company, the capital is divided into shares that can be transferred and that can be registered with the Stock Market.
For any questions on how to set up a subsidiary in Norway in 2022, do not hesitate to send them to our specialists.
Why register a Norwegian subsidiary as a limited liability company in 2022?
One of the main reasons for
opening a company in Norway as a
limited liability company is given by the popularity of this business form. Although it is generally preferred by investors setting up
small and medium sized companies in this country, this legal entity is also the
first option of large multinational corporations expanding on this market due to the following:
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• it may be registered by both natural persons and legal entities and, starting with 2013, the share capital was lowered to NOK 30,000 (the previously required capital was NOK 100,000);
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• it requires at least two directors, one of whom must be a Norwegian citizen or a citizen of a country located in the European Economic Area (EEA);
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• in the situation in which the company employs more than 30 persons, it is necessary that one of the directors to be appointed by the employees;
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• if the company hires more than 50 employees, the board of directors has to be comprised by both men and women;
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• the company must have a registered office in a Norwegian region;
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• in specific conditions, the company may opt not to have its accounts audited;
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• this legal entity can also be employed for starting a holding company in Norway;
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• the company’s board can be formed only by one person.
The Norwegian subsidiary is a great oppoprtunity for those interested in exploring new markets in 2022.
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 agents, who can advise on the main advantages of this business form and who can provide full consultancy services regarding any matter related to the
incorporation of a business here.