FAQ—Doing business in Norway

The short answer—no. The most common entities are a Norwegian AS (a limited liability company) and the NUF (Norwegian registration of a foreign company). 

The Norwegian AS is a separate legal entity, like a subsidiary of a foreign company. The NUF is not a separate legal entity, but merely a formal registration of a foreign company in the Norwegian Business Register.

This depends on each tax treaty. As a starting point, a NUF-registered foreign company will have a PE in Norway when a construction, installation, assembly project exceeds a duration of 12 months, when other activity, for instance service / maintenance works, is carried out from a fixed place of business for roughly 6 months, or when a foreign company has an “agent” in Norway, entering into agreements on behalf of the foreign headquarter.

Non-compliance towards the mandatory registration and reporting responsibilities, and lack of focus on the employee-friendly Norwegian Working Environment Act.

Yes, but in many cases no. Businesses that do not have a place of business or domicile in Norway must register with a representative. The representative must be domiciled or have a business address in Norway and is jointly responsible with you for submitting VAT returns and paying any VAT due (so-called joint and several liability). However, the requirement to register with a representative does not apply if you are established in the United Kingdom or in one of the following EEA countries: Belgium, Denmark, Finland, France, Ireland, Iceland, Italy, Luxembourg, Malta, the Netherlands, Poland, Portugal, Slovenia, Spain, Sweden, Germany, the Czech Republic, Bulgaria, Estonia, Greece, Croatia, Cyprus, Latvia, Lithuania, Romania, Slovakia, Hungary, and Austria.

Yes, in practice via the bi-monthly VAT returns. A foreign company which does not qualify for VAT-registration in Norway can also, in some cases, apply for a VAT refund.

First of all, your company cannot invoice with Norwegian VAT until the VAT-registration is in place. If you have already invoiced your client for business activity in Norway, you may have to re-invoice the VAT amount. Late reporting of VAT may lead to interest claims and potentially penalty charges.

Yes, but the employment contract that the employee is provided must comply with the Norwegian Working Environment Act.

Potentially forever for EU/EEA workers. For non-EU/EEA workers however, immigration matters must be considered.

Primarily the assignment and employee reporting, which again requires a NUF-registration (or the incorporation of the Norwegian AS). Again, the procedures are more complex for non-EU / EEA workers, as work permits may be a requirement.

As a starting point: the company should register as a NUF, submit contract and employee information to the assignment register (RF-1199 and RF-1198), look into obtaining an A1 certificate, and ensure that all payroll and accounting obligations are fulfilled.

A foreign company operating in Norway, and its employees, will generally be subject to the Norwegian National Insurance Scheme. The employer's social security contribution is 14.1% of gross salary, whilst the employee contributes 7.6% of their salary income from the Norwegian activity. These obligations may be avoided where international agreements apply.