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).

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How to register a private limited liability company in Norway (AS)

How to establish a Norwegian branch of foreign company (NUF)

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.

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NUF vs. AS

Normally the Norwegian AS or the NUF are the alternative “vehicles” when doing business in Norway. Major infrastructure projects are often handled through a “joint venture”, which is essentially a general partnership.

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How to choose the right corporate structure in Norway

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.

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What is considered Permanent Establishment in Norway?

This depends on activity, but the monthly A-melding (salary reporting scheme), the bi-monthly VAT-returns, the assignment and employee reporting, the annual corporate tax return and the annual accounts are worth mentioning.

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Business in Norway: These are the reporting obligations

Yes, in practice through the NUF-registration which leads to a Norwegian organization number.

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

Article tip: Doing business in Norway—6 compliance pitfalls to avoid

Yes, when you have sold VAT-liable goods and services in Norway for more than NOK 50 000 within a 12-month period.

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7 FAQ's about VAT for foreign companies operating in Norway

Yes, but there are exceptions. 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.

A sale to Norway is treated as an export sale, with the Norwegian buyer responsible for customs clearance and import VAT. A sale in Norway is a domestic supply, which triggers a VAT registration obligation for the foreign seller once turnover exceeds NOK 50,000 over 12 months.

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Import to Norway—VAT and customs rules for foreign businesses

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.

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VAT refund in Norway: 6 key considerations

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.

Norway applies a standard VAT rate of 25%, a reduced rate of 15% on food and beverages, and a reduced rate of 12% on services such as passenger transport, accommodation, and cultural and sporting events. Most goods and services fall under the standard 25% rate unless specifically exempted or reduced by law.

Not every VAT question needs legal help, but certain moments carry real risk if handled without guidance: 

• You are a foreign company about to invoice Norwegian customers for the first time and you are not sure whether you are required to register
• You have received an audit notice or inquire letter from the Norwegian Tax Administration
• You are importing goods into Norway and need clarity on how import VAT and customs duties apply to your specific goods
• You have discovered a past compliance gap and need to correct historical VAT filings
• You are restructuring your Norwegian operations and VAT consequences are unclear

Obligations typically begin from day one of the assignment, even if the employer is based outside Norway. This includes tax withholding, payroll reporting, and social security considerations from the employee's first day of work.

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What is Global Mobility: Managing international employees in Norway

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

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The rules of Norwegian employment contracts

A secondment typically involves a foreign employer sending staff to deliver a project, with a focus on immigration and assignment reporting. Direct employment in a Norwegian company requires a Norwegian employment contract, local payroll setup, and Norwegian holiday and pension rules.

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

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Your checklist for employee secondment to Norway

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.

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Seconded employees in Norway: Residence permit, tax and reporting

Yes. As a general rule all foreign nationals working onshore in Norway must appear in person at a designated tax office for ID control. A small number of exemptions apply. 

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ID control for foreign workers in Norway—what employers must know

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.

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What employers must know about social security contributions in Norway

Companies in Norway are taxed at 22% of their annual profit, calculated as taxable income minus deductible expenses. Certain income, such as dividends and gains from the sale of shares, may be exempt from taxation under Norway's participation exemption rules.

Higher rates apply to certain industries, including the finance sector (25%), petroleum exploitation (78%), hydroelectric power (67% marginal), aquaculture (47% marginal), and onshore wind farms (47% marginal).

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Corporate tax in Norway: The basics for foreign companies

Yes. Any foreign enterprise conducting business activities in Norway, or hiring employees to work in Norway, generally becomes subject to Norwegian corporate tax. Norway's threshold for tax liability is low, though tax treaties with around 90 countries may reduce or exempt this liability depending on the specific enterprise.

A PE may exist if a foreign enterprise has a fixed place of business in Norway, runs a construction or installation project lasting beyond a set number of months (e.g. 6–12), is represented by a dependent agent authorized to conclude contracts, or conducts petroleum-related activity exceeding an aggregate threshold (e.g. 30 days).

Article tip: What is considered permanent establishment in Norway?

 The deadline for filing a corporate tax return is the end of May, the year after the end of the income year. Returns must be filed electronically via altinn.no using approved software — paper filing is not accepted.

Yes. A foreign company remains obliged to file a corporate tax return even if it's tax exempt under a treaty, unless the tax administration has specifically approved an application for non-filing. Where an exemption applies, it should be explained in an enclosure to the tax return. 

Norwegian entities that are part of a multinational group with consolidated turnover exceeding NOK 6.5 billion in the financial year must notify the tax office when filing their corporate tax return, under Norway's CbCR rules.

Most Norwegian companies are subject to corporate tax. Foreign companies with business activities or property in Norway are also taxed here. The 22% rate applies only to companies that are separate tax subjects, such as limited liability companies — not partnerships, where profits are taxed at the partner level.

Transfer pricing refers to setting the terms and prices for transactions between related companies or entities. The rules apply to taxpayers whose income or wealth has been reduced as a result of a direct or indirect business relationship with another party — a common concern for multinational groups operating in Norway.

Aider Legal covers the full range of legal and compliance needs for foreign companies in Norway, including tax law, VAT and customs, labor law, corporate law, global mobility, and accounting and reporting — managing your company's journey from formation through to closure, all under one roof.

Page tip: Our Expertise

Aider Legal has 30 years of experience helping foreign companies succeed when doing business in Norway, with a team of business lawyers, legal advisors, and accountants across 4 offices.

While our expertise spans industries broadly, Aider Legal is particularly well-known within data centers, construction, oil and gas, green energy, and defense — sectors where we combine general business law knowledge with sector-specific familiarity.

As part of Aider Group, Aider Legal connects you directly to non-legal compliance services, such as accounting and bookkeeping support, hr for hire and recruitment services without needing to bring in a separate provider — extending the one-stop-shop model beyond legal matters alone. 

Yes. Aider Legal supports foreign companies across the full lifecycle of doing business in Norway — from company formation and initial compliance, through ongoing tax, VAT, and employment obligations, to eventual closure if needed. 

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