Expand a business in Norway
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
, 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
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:
• 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);
• 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);
• 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;
• if the company hires more than 50 employees, the board of directors has to be comprised by both men and women;
• the company must have a registered office in a Norwegian region;
• in specific conditions, the company may opt not to have its accounts audited;
• this legal entity can also be employed for starting a holding company in Norway;
• 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