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When deciding to set up a company in Norway, it is important to be aware of the regulations - owning your own business in Norway, requires adherence to the rates and deadlines set by the authorities, which helps your business to run smoothly and avoid unnecessary problems. Being your own boss means a lot of opportunities and challenges, so it is worthwhile to familiarise yourself with some basic information that may make the decision easier: own business in Norway or a full-time job?
Quali - we support your business in Norway

SELF-EMPLOYED OR EMPLOYED?

Working as a self-employed person not only presents a number of opportunities, but also presents a number of challenges - and before setting up a business in Norway, it is worth considering whether this is actually a good solution. Many people choose not to become self-employed due to lack of experience and fear of formalities. Having your own business means that you decide yourself on all the important aspects of your work: the direction of your business and its development. It is our decisions that determine the future profit and growth of the company.

The basic choice relates to the legal form of the activity one wishes to engage in - the business should suit the owner's capabilities and situation. The initially narrow scope of the business can be expanded over time.

[Infographics] [WANT TO SET UP A COMPANY IN NORWAY? Are you just starting your business? ↓ Don't have the financial resources? ↓ Are you unable to estimate future profits? ↓ Will you be trading relatively small amounts? ↓ A sole proprietorship is the solution for you! Are you able to estimate future profits? ↓ Will you be trading large amounts of money? ↓ Are you expecting orders and investments? ↓ AS company in Norway is the solution for you!]
Before deciding to set up a company in Norway, it is advisable to study Norwegian regulations carefully - you should be fully aware of the rights and obligations, as well as the restrictions that apply to entrepreneurs.
The basic form of business in Norway is the sole proprietorship, or Enkeltpersonforetak (EPF) - no equity capital is required and the cost of setting up a business is minimal. The downside is that there is no separation between the owner's assets and the company's assets - this means that liability for liabilities is virtually unlimited.
The cost of setting up a business in Norway for Enkeltpersonforetak is relatively low - filing a business declaration costs in the order of NOK 2 265 or NOK 2 832 - depending on whether the documents are filed electronically or by traditional means.
In addition, businesses in Norway engaged in trade should also register with the Foretaksregisteret - here the stamp duty is NOK 5 570 or NOK 6 797.

Companies whose turnover exceeds NOK 50 000 in a consecutive 12-month period are required to register for VAT. A big plus of running a business in Norway is that dealing with the necessary formalities is relatively easy - communication in English is common (sometimes also in Polish), and the tax and pension system is transparent. As a result, fears of problems related to official matters should not obscure the goal of setting up a business.
Quali - we support your business in Norway

Setting up a company in Norway

When deciding to set up a business in Norway, it is worth paying attention to the formalities that need to be fulfilled - from reporting to the relevant authority, to tax obligations and meeting deadlines, to ensuring the safety of employees.

[Infographic] [FORMALITIES IN THE COMPANY: business registration, bedriftskonto (company account), entry in registers, punctuality, taxes, company documentation, work security, payment monitoring].
  1. The mere registration of the business with the authorities - carried out electronically through the Altinn.no portal or traditionally on the form provided for this purpose - is only the beginning. In order for the company to function properly and in accordance with the law, it is necessary to take care of all the required formalities.

  2. It is good practice to set up a company account - a bedriftskonto - which will allow for all business-related cash flows. In order to set up this type of account, you will need your passport and proof of company registration.

  3. Next, entries must be made in the relevant registers - depending on the nature of the business - Merverdiavgiftsregisteret (i.e. VAT register when the company's turnover exceeds NOK 50 000 in the next twelve months), Foretaksregisteret (i.e. commercial register when the company is engaged in trade, has more than five employees or is an AS) and NAV Aa-registeret (i.e. employer register when the company has at least one employee).

  4. Another obligation is to submit documents on time - the VAT return (every two months) and the annual tax return (by the end of May of the following year after the tax year).

  5. In Norway, entrepreneurs with their own business are obliged to pay taxes - income tax (Forskuddsskatt) and VAT (when the company is a VAT payer), and when they employ employees, they should pay employer tax (Arbeidsgiveravgift) and advance income tax for employees (Forskuddstrekk).

  6. Other obligations that must be observed when conducting business in Norway are: tidiness of company documentation (invoices, company account statements), occupational safety (health and safety training - when the company has employees, industry cards - when the profile of the business requires this).

  7. It is also important to monitor payments - paying suppliers/vendors on time and receiving payment for goods or services (verifying payments will allow ongoing control of liabilities and receivables).
Quali - we support your business in Norway

SUBSIDIES FOR COMPANIES IN NORWAY

In Norway, entrepreneurs have the opportunity to benefit from various forms of business co-financing. Such a need arises when the entrepreneur has little or no funds, and it is necessary to purchase necessary equipment or devices, rent premises for the company, etc. In such situations, it is worth checking out possible forms of business co-financing in Norway. In such situations, it is worth checking out possible forms of business co-financing in Norway.

Funding for doing business in Norway may be provided by:

  • banks,
  • municipalities,
  • NAV,
  • organisations.
Unemployed persons who do not lose their right to receive benefits from the authorities for 12 months after setting up a business can apply for funding.
[Infographic] [TO NOT LOSE BENEFITS IN NORWAY YOU MUST: register your business, run a sole proprietorship, run a start-up company, operate a business in Norway].

Persons who have been sent on permittering and those who have been dismissed from their job without good reason are not entitled to funding.

Norwegian banks and financial institutions usually opt for co-financing in the form of a lease or loan and look favourably on applications from small and medium-sized enterprises - the key is to justify the need for co-financing: to demonstrate the entrepreneur's actual needs and capabilities. In many situations, it is a good idea to ask for financial support from the municipality where the entrepreneur lives or intends to operate. Supporting entrepreneurship is one of the objectives for which municipalities often have resources.

Another form of support can be funding from the organisations involved - Innovasjon Norge provides support (in the form of a loan, credit or grant) for an amount based on the entrepreneur's objective and financial capacity. The organisation operates in Norway and supports companies, regardless of their type of business. Another option is support from NAV itself - the office supports associations and foundations, social entrepreneurship, various types of projects and training.
Quali - we support your business in Norway

SELECTED PERMITS FOR COMPANIES IN NORWAY

When running a business in Norway, it is necessary to register it in certain registers - the obligation to register depends on the type of business, the nature of its activities and the turnover of the company.

[Infographics] [ENHETSREGISTER ENHETSREGISTER (Register of Economic Operators) FORETAKSREGISTER HMS COURSE INDUSTRY CARDS]

This is based on registration in the Business Entity Register - Enhetsregister, which should be done by every Norwegian entrepreneur, regardless of the form of business.

The Business Entity Register - Foretaksregister applies to all types of companies and sole proprietorships with more than 5 employees and commercial enterprises.
The listed types of business require industry cards, which constitute a licence to carry out specific work (construction work, cleaning services).
[Infographics] [BRANCH CARD BYGGEKORT (construction companies) Byggekort is an ID badge that every employee of a construction company should have - the badge is valid for two years and identifies the details of the employee and the company employing them. RENHOLDSKORT (cleaning companies) Authorised cleaning companies are obliged to supply their employees with a Renholdskort - an ID badge that confirms that the business is being conducted legally and has the necessary permits].

In practice, the badges are intended to improve occupational safety and increase control over operating and emerging companies in Norway.
According to Norwegian regulations, the only institution that issues Byggekort (byggekort.no) and Renholdskort (renholdskort.no) badges is Idemia Norway AS (formerly Oberthur Technologies).

The identifier should uniquely indicate:

  • company name,
  • the organisational number (organisasjonsnummer),
  • details of the owner of the badge (name, surname, date of birth, sex, signature),
  • the period of validity of the badge,
  • details of the person issuing the badge (name, surname, address).
Entrepreneurs in Norway who work with subcontractors or have more than five employees or managers who are responsible for the safety of subordinate employees are required to complete an HMS (occupational health and safety) course - the priority is to ensure safety at work.

[Infographic] [HEALTH AND SAFETY TRAINING SHOULD BE COMPLETED BY the owner of a company with employees, the owner of a company that subcontracts tasks, daglig leder.]
Quali - we support your business in Norway

COMPANY COSTS

A Norwegian entrepreneur has to reckon with the costs of running a business - from setting up the company to its day-to-day operation. Many of these depend on the nature of the business, the turnover of the company and the number of employees.

In general, business costs are divided into fixed costs and variable costs. Business costs can vary depending on the nature of the business and the range of services provided by the company in question - it is important to bear in mind the obligation to prove the reasonableness of the costs incurred.

[Infographics] [FIXED COSTS ARE: costs for renting premises (the premises should be declared as a place of business; if a dwelling is used for business purposes, a maximum of NOK 1700 can be deducted - without having invoices or a proportionate value - depending on the area of the dwelling and the area used for business), hiring employees (employees place a significant financial burden on the company - the employer has many obligations towards them, so the profitability of hiring an employee must be recalculated), depreciation and expenses related to the use of a car (cars are depreciated for several years in a row, all expenses related to the use of a car for business purposes are a cost for the company), company telephone subscription (for a sole proprietorship, telephone deductions are partial - an amount of NOK 4392 is deducted from costs)."]. [Infographic] VARIABLE COSTS ARE: materials / goods (necessary to generate revenue), tools / equipment (purchases over NOK 15,000 are accounted for several years in a row - depreciation rate depends on the type of equipment), travel expenses, per diems (expenses should be documented, working more than twelve hours a day means that NOK 89 per day can be deducted), entertainment expenses (in order that the office cannot question the deduction, it must be clearly stated on the bill for what purpose the meeting was held - VAT cannot be deducted on such expenses), advertising (business cards, internet or newspaper advertisements, flyers), office supplies (computers, scanners, printers), training, licensing and authorisation costs (training in the services provided, purchase of professional literature, fees for trade cards - Byggekort, Renholdskort].

Registration with the Register of Business Entities - Enhetsregister, which should be done by every Norwegian entrepreneur, regardless of the form of business - is free of charge. Registration with the Business Entity Register costs approximately kr 2,265 for electronic registration or kr 2,832 for on-site registration at the office.
Sole traders are required to pay income tax - 22% on the company's profit - and social security contributions - 11.4% on the company's profit.
A company whose turnover exceeds NOK 50 000 in a consecutive twelve-month period must be entered in the VAT register.

In Norway, tax is divided into three rates:

  • 25% (standard rate),
  • 15% (reduced rate: food, beverages),
  • 12% (low rate: television, radio, cinema).
Most of the costs depend on the legal form and the specifics of your business in Norway.

Sometimes companies are required to produce special industry cards - Byggekort (net DKK 105.25 per unit) and Renholdskort (net DKK 147.02 per unit) - for construction and cleaning companies.

A sizable cost is the employees employed - here, too, costs can be divided into fixed and variable costs.

[Infographics] [EMPLOYEES IN THE COMPANY FIXED COSTS 26,3% ↓ employment charge ↓ pension insurance ↓ feriepenger VARIABLE COSTS 5% ↓ sickness benefit ↓ training ↓ work clothes]

Construction companies pay a fee to the RVO, which controls such companies - the minimum amount is NOK 250 (depending on the number of workers employed). The owner of the company pays up to 0.03% of the gross amount from the earnings of his or her employees (this only applies to those working directly on the construction site, i.e. not to office and administrative staff).

Companies with more than five employees or working with subcontractors, as well as managers responsible for the safety of their subordinates, must undergo mandatory HMS (Health and Safety at Work) training. The cost of the online course is approximately NOK 1450 net.
Quali - we support your business in Norway

FINANCIAL PROBLEMS OF THE COMPANY

When starting a business in Norway, the entrepreneur must be prepared for possible problems - primarily financial problems. In such a situation, it is advisable to analyse the options currently available and implement those that can bring the best results for the company.

[Infographics][FINANCIAL PROBLEMS IN COMPANY: instalments, cancellation of part of obligations to the office, change in advance income tax payments, credit, loan, permittering, acquiring new customers].

A considerable convenience for Norwegian entrepreneurs is the possibility to spread liabilities to authorities in instalments - in this way, short-term financial problems can be solved. In order to use such an option, it is necessary to submit properly prepared documents (e.g. by contracting a specialised company) to the relevant office. Sometimes, it is also possible to write off part of the interest or debt - there are grounds for requesting remission when the arrears are significant and exceed the financial capacity of the company.

Norwegian regulations also provide for the possibility of changing the amount of advance income tax in a situation where the actual profit is significantly lower than the one declared earlier - a letter must be submitted containing reliable documentation constituting the basis for changing the amount of advance income tax - e.g. copies of contracts with contractors in cases where the expected income from business activity has changed.

Another way of trying to solve financial problems faced by a company in Norway is to take advantage of the opportunities offered by the Norwegian financial sector - a loan or credit may help, but it is worth analysing the potential consequences of such commitments - borrowed funds must be repaid, so it is not a good solution if financial problems are long-lasting.

A company with employees may benefit from permittering - in this situation, the employer is relieved of the obligation to pay wages, which are paid by NAV. Permittering can last for a maximum of 49 weeks - after 30 weeks of release, the employer pays for five consecutive days and NAV pays for another 19 weeks. Permittering is possible if the reason for the financial difficulties is justified and the employee meets certain conditions.

[Infographic] [TO USE PERMITTERING: THE EMPLOYEE'S GROSS INCOME must be a minimum of 1.5G for the previous calendar year or a minimum of 3G for the last three calendar years (G rate is the base amount set each year). The EMPLOYEE must be exempt from a minimum of 50% of base working hours. The EMPLOYEE must be on the unemployment register (NAV). The EMPLOYEE must present a letter from the employer directing them to permittering].

The obvious solution is to focus on acquiring new clients and expanding the cooperation with existing ones - the success of such activities guarantees the company's liquidity. Properly chosen advertising can help - the help of a specialist who will optimally choose a marketing strategy suitable for the type of business is essential for the benefits to be measurable for the invested resources.
Quali - we support your business in Norway

SOCIAL BENEFITS AND PENSION IN NORWAY

Running your own business in Norway entails the possibility of benefiting from Norwegian social benefits, such as sickness and maternity allowance.
The owner of a sole proprietorship can go on sick leave, but the company cannot generate income during the stated period, and the costs can only be for rent or company phone subscription.
Where the business owner benefits from the 50% exemption, the company is entitled to earn income, but only within the work to which the issued exemption does not apply (e.g. office work).

Sickness benefit is paid by NAV from the 17th day of exemption and is calculated based on the previous year's base income.

In Norway, maternity benefit is available to all women who have worked for a minimum of six months in the past ten months and whose income has reached a level on which pension contributions have been paid. In addition, the income must be at least half the amount set by NAV - grunnbeløp.

An entrepreneur who is employed by his or her own company acquires the status of an employee and all the rights that go with it - salary, annual leave or compensation for an accident at work.
Pensions in Norway consist of three parts - a pension from folketrygden (the social insurance scheme), a pension from an employer and optional pension savings (the voluntary part).
The folketrygden part is compulsory - it ensures that Norwegian residents are entitled to pension benefits. Employer pension is a mandatory pension scheme that applies to most employees. In addition, an employer can enter into an agreement with AFP (avtalefestet pensjon) and its employees are entitled to an additional pension.

[Infographics] [PENSION FOLKETRYGDEN (social insurance scheme) FROM THE EMPLOYER PENSION SCHEMES (optional) Retirement age is 67 and the Norwegian pension depends on the number of years you have worked, your savings and how long you have lived in the country].

You are entitled to a pension in Norway if you have been a member of the Norwegian social security system for at least three years. While you are receiving the benefit, you can simultaneously be gainfully employed - regardless of your salary.

The rules for awarding pension benefits differ depending on a person's date of birth:

  • for persons born before 1954 → the old rules apply,
  • for persons born between 1954 and 1962 → a combination of old and new rules is applied,
  • for persons born after 1962 → the new pension calculation rules apply.

When drawing a Norwegian pension, you can stay abroad if certain conditions are met:

  • stay abroad for up to 12 months - the pensioner remains a member of folketrygden provided that he or she has been in Norway for at least 6 months in each calendar year,
  • stay abroad for more than 12 months - the pensioner ceases to be a member of folketrygden and loses the right to receive the pension (the same applies if, in at least two consecutive years, the stay is longer than 6 months per year).
Quali - we support your business in Norway

FORMS OF ECONOMIC ACTIVITY IN NORWAY

[Infographics] [TYPES OF BUSINESS IN NORWAY: sole proprietorship (ENK - Enkeltpersonforetak), joint stock company (AS - Aksjeselskap, ASA - Allmennaksjeselskap - limited liability company, DA - Delt Ansvar / ANS - Ansvarlig Selskap - general partnership), subsidiary of a foreign company (NUF - Norskregistrert utenlandsk foretak)].
Quali - we support your business in Norway

ENKELTPERSONFORETAK (ONE-MAN COMPANY) IN NORWAY

A sole proprietorship (EPF - Enkeltpersonforetak) usually works well for people who are unable to predict future profits and intend to trade with relatively small funds when running their business in Norway.
The owner of a Norwegian company, i.e. the named person or spouses, is liable with all his/her assets for the company's obligations - there is no separation between the owner's assets and the company's assets.
Setting up a company in Norway is relatively simple and, what's more, can be done electronically (takes about 4-6 days). To set up a company, you must have a permanent personal number and MinID codes that enable you to log on to Altinn.no.

The entrepreneur is required to pay income tax of 22% on the company's profit and social security contributions of 11.4%.

Each year, a tax return must be filed indicating the expected amount of profit, on the basis of which the office calculates the tax, which is paid in four instalments - 15 March, 15 June, 15 September and 15 December.

[Infographics] [INCOME TAX PAYMENTS IN A SINGLE-PERSON COMPANY MUST BE PAID BY: I 15 March II 15 May III 15 September IV 15 November]

The business must be declared in the VAT register when its turnover exceeds NOK 50 000 in the following 12 months. VAT is settled on the basis of an electronically filed return (www.altinn.no):
  • 10 April (for January, February),
  • 10 June (for March, April),
  • 31 August (for May, June),
  • 10 October (for July, August),
  • 10 December (for September, October),
  • 10 February (for November, December).
If the owner of a sole proprietorship employs employees, he or she is obliged to pay fees - on the employee's employment: 14.1% on gross salary, pension insurance: 2% on gross salary, ferienpenger: 10.2% on gross salary - a total of 26.3% on the amount of gross salary.

[Infographics] [ENKELTPERSONFORETAK (ENK) sole proprietorship, no equity capital, basic accounting, free withdrawal of funds, asset liability, no employee status].
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NUF IN NORWAY

NUF (Norskregistrert utenlandsk foretak) is the Norwegian branch of a foreign company - the company is based in Poland, but performs orders in Norway.
The entrepreneur is financially liable both in Norway and in the home country, so it is advisable to read the double taxation agreement to know the extent of tax liability in Norway (this depends on the nature and duration of the business).

[Infographic] [THE FOREIGN COMPANY FILE IN NORWAY (NUF): bronnoysundregistrene, enhetsregister, establishment of a representative, VAT register]

Establishing a NUF requires registration with Brønnøysundregistrene (www.brreg.no). An application for a Norwegian organisation number must be submitted. The application should include documents concerning the company:
  1. articles of incorporation,
  2. articles of association,
  3. entry in the register (KRS or CEIDG),
  4. address data,
  5. powers of attorney.
And documents concerning the branch we wish to establish in Norway:
  1. name of the branch,
  2. scope of activities,
  3. personal data of the persons who are to make decisions on legal obligations and data of the board of directors (in the case of companies).
It is also necessary to register with the Register of Business Entities (Enhetsregister), which all Norwegian entrepreneurs must do.
It is a good idea to appoint a representative in Norway to streamline the work of the NUF. The representative takes care of the formalities related to the company's tax liability and other obligations - this can be a Norwegian company or a person who lives and works in Norway.
Companies with employees should report their stay in the country to the Central Foreign Tax Office (SFU - Sentralskattekontoret for utenlandssaker) and register them with the police.

A NUF is obliged to register for VAT if its turnover exceeds NOK 50 000 in the following twelve months.
Quali - we support your business in Norway

AS COMPANY IN NORWAY

It takes up to four weeks to set up an AS company in Norway - in order to register the company, a stamp duty must be paid for entry in the Foretaksregisteret (Register of Companies - www.brreg.no) - this fee is NOK 5 570 or NOK 6 797.

The company is required to have a board of directors (with the obligation to hold meetings at least once a year) and to have full accounts. At least one of the company's shareholders should have a permanent personal number.
This type of business requires a minimum share capital of NOK 30 000 (this capital can be used to finance start-up and business expenses).
In the case of an AS company, the owners' assets are separate from those of the company - business liabilities are only collected up to the amount of share capital. In contrast to sole proprietorships, in companies there is a need to document every movement of money.

Shareholders are paid on an employment, dividend or shareholder's remuneration basis.

[Infographics] [ REMUNERATION OF THE AS COMPANY’S SHAREHOLDERS EMPLOYMENT OR SHAREHOLDER REMUNERATION OR DIVIDEND]
Business owners can employ themselves in their own company - they then acquire all employee rights and entitlements to benefits such as salary, annual leave, sick leave or compensation for an accident at work.
Advances on income tax for AS companies are paid in two instalments:
  • 15 February,
  • 15 April.
Quali - we support your business in Norway

VAT IN NORWAY

An enterprise becomes liable for VAT in Norway if its turnover exceeds NOK 50,000 in the following twelve months (sales of goods and services at any stage of sale - tax is charged on the selling price, on imports - tax is charged on the statistical value of the goods in question) . Such companies are required to register in the VAT register and pay tax.
When registering a company in the VAT Register (Merverdiavgiftsregisteret), a form available on Altinn.no must be completed and sent electronically or a paper version must be completed - form BR-1080) and submitted directly to the local tax office (skattekontoret) or Enhetsregisteret.

Norwegian VAT is divided into three groups:

  • basic - 25%,
  • breduced - 15%,
  • blow - 12%.
The reduced rate (15%) applies to food and beverages and the low rate (10%) to transport services (passenger transport) and cinema tickets, among others.

VAT in Norway is settled by means of a tax return submitted via www.altinn.no. The company must show all costs and revenues incurred.

[Infographic] [VAT DECLARATION The VAT return must be submitted every two months - electronically via Altinn.no - on the prescribed dates: 10 April (for January, February), 10 June (for March, April), 31 August (for May, June), 10 October (for July, August) 10 December (for September, October), 10 February (for November, December)].

When preparing the VAT report, you need to include account statements for the time period in question (accountskrifter), invoices issued by the company (revenue invoices), costs incurred during the period in question (invoices and receipts) and other documents such as the vehicle card or the premises rental agreement.

Invoices issued by a VAT payer company should bear the abbreviation MVA - this means that the appropriate rate of tax is added to each good or service.

In the case of importing goods, VAT payers settle supplies through a tax return - the obligation to charge and settle tax rests with the company concerned.
Quali - we support your business in Norway

INCOME TAX IN NORWAY

Income tax must be paid on business conducted in Norway - at 22% on the company's profit. Each year, the authority sets tax thresholds that indicate how the excess income is taxed - once these are exceeded, companies must pay tax at an increased rate.

[Infographics] NORWAY'S TAX THRESHOLDS FOR 2020 I THRESHOLD (+1.9%) 180 800 NOK II THRESHOLD (+4.2%) 254 500 NOK III THRESHOLD (+13.2%) 639 750 NOK IV THRESHOLD (+16.2%) 999 550 NOK]

Income tax must be paid in the form of advance payments - the amount is calculated by the office. The timing of payments depends on the form of business.

In the case of sole proprietorships, the payment of income tax follows a pattern:
  • declaration of profit (either after the start of the business or at the beginning of the calendar year),
  • advance payments of income tax (payable on 15 March, 15 June, 15 September and 15 December),
  • filing of a tax return (by 31 May of the following year).

[Infographics] [INCOME TAX PAYMENTS IN A SINGLE-PERSON COMPANY MUST BE PAID BY: I 15 March II 15 May III 15 September IV 15 November]

AS companies receive advance income tax payments calculated by the office (based on the company's income from previous years) in January of the following accounting year, which must be paid by the prescribed deadlines.

Income tax - AS company:

  • 15 February,
  • 15 April.
In Norway, the entrepreneur has the option to calculate the expected amount of profit himself/herself and state it in the tax return before the office does so. The company pays advance income tax and the tax itself is paid from the actual income in the following year.
Quali - we support your business in Norway

INVOICING IN NORWAY

Invoices can be issued by any company that is registered with Brønnøysundregistrene - the office assigns a Norwegian organisation number and has a company bank account number.

In order for an invoice issued in Norway to be valid, it should contain all the required information that clearly identifies the seller and the buyer of the services or goods.

[Infographics] [ON THE REVENUE INVOICE - ISSUED TO CUSTOMERS FOR GOODS / SERVICES - INCLUDE: the invoice number (at the top of the document, numbering is continuous from year to year), the company organisation number (nine-digit number - VAT payers add the abbreviation MVA at the end), date of issue of the invoice (to qualify the revenue for the period), invoice payment date (important for cash flow management), details of the seller (company name and address), buyer details (name, surname, address), bank account number (necessary to make the transfer for the service, goods), description of the service / goods (detailed), amount to be paid (for the goods / service)].

An incorrectly issued invoice can be corrected with a credit note, or credit invoice.

If the company is not a VAT payer, it can issue invoices with zero VAT - VAT 0%. If the company's turnover exceeds NOK 50,000 (in the following twelve months), the business must be registered in the VAT register and the invoices must bear the abbreviation MVA, which means that the appropriate tax rate is added to the goods/services.
Situations where contractors fail to meet their obligation to pay for purchased goods and services can be resolved in two ways - either by waiting for payment or by seeking payment through official channels.
If the entrepreneur intends to take legal action, he should send inkassovarsel to the debtor. Sending a reminder is obligatory, but in order to be able to take a case to court or a debt collection company, sending a payment demand - inkassovarsel - is necessary. The document must specify the deadline for payment of the debt and the total amount owed.

When demanding payment of a debt, the creditor may send the debtor a reminder - purring - a non-payment fee is added to the amount of the debt - purregebyr, which is regulated by inkassoforskriften).

When demanding payment of the debt, one can send purring and, as a last resort, inkassovarsel or wait 14 days from the date of payment of the invoice and send a summons. Only then does the creditor have the right to take final measures to recover the debt - by means of debt collection (inkasso) or court.

The final step is to send betalingsoppfordring - a demand for payment (within a minimum of 14 days after sending inkassovarsel).

A company can use the assistance of the forliksrådet - the Norwegian Arbitration and Conciliation Board, which handles cases relating to debts for goods and services. The creditor should report the case to the municipality where the debtor lives or operates.
Quali - we support your business in Norway

EMPLOYEES IN A COMPANY IN NORWAY

[Infographic] [EMPLOYEES IN COMPANY entry to AA-REGISTER ET skattetrekkakonto contract declaration to NAV OTP insurance]

An entrepreneur who intends to employ an employee should:

  1. make an entry in the Aa- register et (on the Samordnet registermelding del 1(BR-1010B), mark JA under 3.3 and send to BRØNNØYSUNDREGISTRENE),
  2. open a bank account (Skattetrekkskonto) that will be used to secure advance income tax payments for the employee,
  3. sign a contract with the employee (in duplicate on paper - this may be in two languages; the rates in the contract may not be less than those set by the NAV office - it is worth monitoring these rates as they change every year),
  4. notify the employee to NAV (notification is made on form A-melding, this must be done by Friday of the week following the signing of the contract),
  5. pay compulsory pension insurance (OTP - Obligatorisk tjenestepensjon; for each employee with at least 3/4 time employment; this contribution is a minimum of 2% of the salary and is an employer expense - it is not deducted from the employee's paycheck),
  6. the employee is obliged to provide a Skattekort (otherwise a 50% advance on income tax may be charged) and a personal and bank account number (Norwegian law does not provide for payment in cash).

  7. When hiring employees, it is worth bearing in mind the costs they generate.

    [Infographic] [EMPLOYEE IN THE COMPANY FIXED COSTS 26,3% ↓ employment fee ↓ pension insurance ↓ feriepenger VARIABLE COSTS 5% ↓ sickness benefit ↓ training ↓ work clothes]

    Fixed costs total 26.3% on gross pay:
    • employment levy (14.1% on gross salary),
    • pension insurance (2% on gross pay),
    • ferienpenger (10.2% on gross salary - employees up to 60 years of age, 12.5% on gross salary - employees over 60 years of age).

    Variable costs are approximately 5% of gross salary, among others:
    • sick pay,
    • employee training,
    • workwear.
    Feriepenger (annual leave) is a benefit to which every employee is entitled. Holiday pay and holiday entitlement are provided by the Norwegian Holiday Act.
    The amount of the benefit depends on the total salary (base plus commission) earned in the previous year - sickness and care allowance is included in this amount. In Norway, according to the law, holiday pay is 10.2% of earned base (the rate may be higher) - people over 60 are entitled to a minimum of 12.5% of earned base pay.

    If the employee is on sickness or maternity benefit, he or she is also entitled to holiday pay - for sickness benefit, the first 48 days; for parental benefit, the first 12 or 15 weeks.
Quali - we support your business in Norway

FAQ

I FIRST STEPS OF POLISH ENTREPRENEUR IN NORWAY

Can Poles set up their own companies in Norway?
Polish citizens are not restricted in establishing their own companies in Norway. They only need to have a Norwegian VAT ID number and register with the Norwegian police station.
Do I need to be registered in Norway to start a company there?
No, you do not need to be registered in Norway to open your own business there.
Do I need a Norwegian personal number to set up a business?
If you plan to set up a business in Norway, you do not need a permanent personal number, or even a temporary number. It is sufficient, that you enclose with your start-up documents an application for a personal number and a copy of your passport, which is certified by one of the Norwegian state institutions, such as the police.
How long does it take to set up a company in Norway?
It takes between 3-6 days and up to 3 weeks to set up a business. The length of time it takes to register a business depends on the time of year you are trying to start a business in Norway. It usually takes much less time to set up a company in winter than in summer.
I have established a business in Norway. Can I apply for a permanent personal number?
Yes, with a company you can apply for a Norwegian permanent personal number, but only if you intend to work in the country for more than 6 months.
What do I need to do to get a permanent personal number in Norway if I already own a company?
If you own a business and are applying for a permanent personal number, you must submit an application, a validated passport and an application for registration to the Tax Office.
What types of business exist in Norway?
In Norway, you can open a sole proprietorship - enkeltpersonforetak (EPF), a joint stock company ANS or DA or an AS company, or aksjeselskap.
How much does it cost to set up a sole proprietorship in Norway?
It costs nothing to open a sole proprietorship in Norway. You can set up a Polish business in Norway completely free of charge. All you need to do is fill in the appropriate form or register your company online via www.brreg.no.
How much equity is required for joint stock companies established in Norway?
The amount of mandatory equity for joint stock companies is NOK 30 000.
How much capital is required to establish an ANS or DA company?
It is not necessary to have capital in order to establish an ANS or DA company. You only need to submit the necessary documents for company registration, minutes and articles of association.
What conditions must an ANS or DA company fulfil?
An ANS or DA company must be incorporated in Norway and operate in Norway. The agreement between the partners must specify the level of responsibility of each partner and attach the agreement to the company opening form. ANS or DA companies require registration with the Foretaksregisteret.
Is there a difference between an ANS company and a DA company?
The difference concerns the division of liability. In an ANS company, the shareholders are equally liable, whereas in a DA company the liability is not divided into equal parts. The shareholders write a contract that regulates the division of liability.
Does a company incorporated in Norway have to have a Norwegian registered address?
Yes, a company incorporated in Norway must have a Norwegian registered office address.
What is the Norwegian organisation number used for?
A Norwegian organisation number is the equivalent of the Polish NIP, which is issued to new companies and individuals. The number is needed to deal with many matters that have to do with public administration, such as paying tax or social security contributions.
When does a company receive a Norwegian organisation number?
The company receives a number after the owner has registered the business with the Register of Business Entities.
I am on benefits and want to set up a business. How do I do this and can I get any help from NAV?
In the process of opening a business you can apply for assistance from NAV, but you must submit your business plan there. You will then be directed to relevant courses and training. The fact that you have an allowance does not change anything in terms of the formalities of setting up a business, but it can pay off in terms of finance - you may receive start-up money to begin with, and later, as a result of any failures, you are entitled to return to your allowance.
Where do you do the formalities for setting up a business in Norway?
To set up a company in Norway, all you have to do is go to the website of the Brønnøysund office and fill in the applicable form required to set up a company. On the form you will need to enter the company owner's details, company name, registered office and scope of activities.
What industry should I indicate when completing the application for company formation?
In most cases, Bregg assigns the industry itself. However, you can do this yourself, at this address you will find a list of industries available in Norway: http://www.ssb.no/a/publikasjoner/pdf/nos_d383/nos_d383.pdf.
Can my name, which is required in the name of a sole trader, be omitted in less official situations, such as in advertisements or on business cards?
It does not matter whether the owner uses the abbreviated name of the business or uses the full name, it is an individual matter.
How do I change my business address?
You must inform Brønnøysundregistrene of all changes, as well as your bank, network operator, insurance company etc. At http://www.brreg.no/blanketter/hovedblankett.html find "Forenklet registermelding - blankett for Enkeltpersonforetak" and fill in field 1.1: full company name and organisation number; field 2.2: change/new information; field 4: new company address; field 18: date and signature. Print the completed form and send it by post.
Is there a fee to change the company name?
If the company is only registered with the Enhetsregisteret, the company name change is free of charge. If the company is registered in Foretaksregisteret, it costs NOK 2 265 to change the name electronically and NOK 2 832 by traditional means.
What document is needed to change the company name?
The company name is done by filling in the same form as when registering a company.
I have established a company in Norway. Can I already invoice my customers?
You can only issue your first invoices once you have set up a bank account for your new business with a Norwegian bank. Registration in additional registers is often required.
Can I take out a start-up loan for my business in Norway?
Yes, you only need a business plan and a budget. If the bank deems your project financially secure, you will definitely receive the money you need.
In one business, can I provide services from two unrelated industries?
Yes, but you must consider both industries when defining the scope of your business.
I have a company in Poland and want to open a NUF in Norway. What do I need to keep in mind?
You will need to translate your company documents into Norwegian or English and get an extract from the register of economic activity, which confirms the details of your company in Poland.
Do I need equity to open a subsidiary in Norway?
No, you do not need to have founding capital to establish a subsidiary in Norway.
What rights and obligations does a subsidiary established in Norway have?
A subsidiary established in Norway has the same rights and obligations as a normal Norwegian company. If the subsidiary's profits do not exceed the threshold of NOK 5 million, the company does not have to carry out an audit and inform the Company Accounting Register of the amount of annual turnover.
A new year has recently started. How should I number my invoices?
Invoices are numbered in order, regardless of whether a new year has started or not. If the last invoice of last year is numbered n, then the first invoice of January must be numbered n+1.
A new year has recently started. Do I have to give my customers new numbers?
The customer numbers remain the same.
What must a Norwegian invoice contain?
An invoice issued by Norwegian companies should contain information such as the invoice number, the company's organisational number, the date of the invoice, the date of payment, the seller's details, the buyer's details, the seller's bank account number and the price of the goods or services.
What is the procedure for closing down a business in Norway?
If you decide to close your business in Norway, all you need to do is complete the relevant document and send it to the tax office. A prerequisite for closing your business is that you have no liabilities to the state. The legal status of your company must not be in doubt.
I have closed my business in Norway. Do I have to submit a tax return?
Yes, the closure of the business does not exempt you from filing an annual tax return for the year in which the closure took place.
Can I suspend my business?
Yes, you must inform the tax office that you will have no income and deregister as a VAT payer.

II COMPANY FORMALITIES

What is Altinn?
Altinn is a digital administrative platform that provides a tool for completing many formalities. It is possible to access most Norwegian authorities on the portal. Altinn is an excellent alternative for people who do not have the time to attend an office in person to visit an office.
What kinds of matters can be dealt with via the web portal altinn.no?
On altinn.no it is possible to do a number of different things, such as filing your tax return or social security contributions. There are currently more than 1 000 forms on the website, and most of these can be completed online.
Do entrepreneurs in Norway have to file a tax return?
Yes, it is the responsibility of every person who starts a business in Norway to file a tax return and send it to the tax office. The expected amount of income for the entire financial year must be entered on the return.
When do I have to register my business in the VAT register?
A company can operate without being entered in the VAT register until it has a company turnover of NOK 50 000. Company turnover is equivalent to company revenue, i.e. the amount for which all company invoices have been issued in total. When the company's turnover reaches NOK 50 000, the appropriate declaration must be completed and a compulsory entry in the VAT register must be ensured.
Do entrepreneurs in Norway have to submit a VAT return?
Yes, it is the responsibility of every entrepreneur with an annual turnover of more than NOK 50 000 to submit a VAT return to the authorities every two months.
What is the purpose of submitting a VAT return?
VAT returns are a list of how much VAT has come into the company (outgoing invoices) or how much has gone out (expense invoices).
How do I check if my company is already VAT registered?
To check whether your company is already in the VAT register, simply go to brreg.no and check the status of your company. If the company description says Merverdiavgiftsregisteret, this means that the company is registered for VAT.
What permits do I need to open a car workshop?
You do not need any permits if the services you offer are not safety-related (air conditioning, electronics, bodywork, etc.). However, if you intend to provide the above services, you must have a recognised profession as a mechanic in Norway.
I do not have certificates, but I am familiar with Norwegian technology. What types of work can I do if I want to open a one-man construction company?
You can operate in areas where so-called godkjenning is not required, e.g. you can lay tiles in the bathroom, but no longer a membrane. Godkjenning is a kind of certificate that confirms your qualifications under Norwegian law.
I am self-employed and want to go on maternity leave. After how long am I entitled to it?
The mother-to-be must have received income for at least 6 of the 10 months preceding the planned maternity.
I am a Daglig Leder in Enkeltpersonforetak (EPF). Can I employ my spouse?
No, you cannot employ your spouse in your company.
I have a company in Norway. Can my spouse help me with my business?
Yes, formally you do not need to declare this anywhere. You only have to, during the annual return, divide the estimated business income entered in the tax card application between two people.
I am a sole trader in Norway. How do I calculate my pension contribution?
The pension contribution is included in the contribution paid for Norwegian Social Insurance, which is 11%.
I have my own business, but have not taken out insurance. Can I get free treatment in a Norwegian hospital if my previous employer paid insurance premiums for me?
You can receive free medical treatment if you have paid your own contribution, or egenandel. If you wish to receive money while you are on sick leave, you must pay the social insurance contribution (11%) in advance, which is included in tax.
I run a sole trader business. Am I entitled to sickness benefit?
If you pay the basic sickness insurance contribution, the benefit will be paid from the 17th day of illness. The amount of the benefit depends on the average income you have earned over the last 3 years and is 65% of this amount.
My clients are late with their payments. How do I send them a reminder and charge them a late payment penalty?
If two weeks have passed since the due date, you must send the client a purring (reminder). The maximum penalty in this case is NOK 70 and the customer has 14 days to pay. The next step is inkassovarsel (collection warnings) - the rules are the same as for purring. The final step is to send the invoice to the collection company. They in turn charge their fee of NOK 162 plus a percentage.
I am currently a sole proprietor and have no insurance. However, when I was employed in a Norwegian company I paid the basic premiums. Do I have to pay for hospital treatment?
No. Hospital treatment requires a paid egenandel, i.e. your own share of the costs.
How long do I have to keep the company's accounting documents?
Company accounting documents must be kept for a period of 5 years.
Do I have to keep records of my tools?
Yes, the business must keep records of all its assets, including its tools.
I run a business - a stall selling seasonal produce. Do I need to buy a cash register?
Yes, if your cash sales will be for higher amounts. Otherwise you can carry out so-called Kaseavstemming. The amount of turnover from which you are obliged to keep a cash register is based on grunnbeløp.
How long do I have to keep company documents?
Time sheets should be kept in the archives for 3.5 years, and financial statements for 10 years.
Can I get a European TIN in Norway, which is needed to purchase goods in the EU without VAT?
Norway is not a member state, so no. You can, however, purchase goods in an EU country with that country's VAT, declare at the border that you are exporting the goods, through which you will receive a VAT refund. You will then only have to pay Norwegian VAT when you enter Norway.

III EMPLOYEES IN THE COMPANY

I want to hire an additional person at my company. What do I need to bear in mind when hiring an employee?
If you decide to hire an employee, you must remember to make an entry in the register of employers (NAV AA-registeret).

You must enter into a contract with each employee. Each employee must be given a personal number and a tax card.
How much time do I have to report an employee to NAV?
You must report an employee to NAV by Friday of the week following the week in which the obligation arose.
How are employee personnel files maintained in Norway?
There are no legal regulations in Norway regarding the content of an employee's file. However, please note that all personnel duties are performed by an accountant.
Are periodic examinations reimbursed by employers?
This issue is dealt with individually by employers. Some pay for periodic examinations no more than once a year, others do not reimburse at all.
What is an innskuddpensjon?
The pension contribution is part of the Social Security contribution, which amounts to 7.8 per cent of the employee's income. To this must be added the OTP - the additional amount that the employer contributes to pensions. Innskuddpensjon is a supplementary agreement with the employer whereby part of the salary is deducted for the so-called fond. More at: http://www.nordea.no/Bedrift/Pensjon+og+liv/Tjenestepensjon/Innskuddspensjon+ITP/404214.html
How much are the fixed costs of employing an employee in Norway?
The employee's fixed costs are 26.3% of gross salary.
Should tax be paid on the employee's gross salary and the Norwegian Social Insurance Scheme, on a monthly basis?
These fees should be paid by the entrepreneur, every two months.
What is Arbeidsgiveravgift?
This is an obligatory fee that arises from the employment of an employee. It is otherwise equivalent to the Polish Social Security and ranges from 0 to 14.1 per cent of the employee's gross income. The rate depends on the zone of the country, but most often you have to pay 14.1%.
What is Ferienpenger?
This is money that is set aside for an employee's holidays. Each employee is entitled to at least 10.2% ferienpenger on their gross pay. This is a minimum rate. Sometimes companies set the rate at a higher level.
What is the OTP?
It is a compulsory pension insurance. The OTP is approximately 2% of gross pay.
What additional expenses are involved in employing employees in a company?
The employer should ensure that employees are insured against accidents. Very often, HMS training, which is the equivalent of the Polish OHS, should be included in the company's costs. Employer-dependent costs include additional training for employees related to increasing their qualifications, necessary protective clothing, a company phone and other facilities or industry cards. Employers pay for employees' sick leave up to 16 days.
What is Sykenpenger?
Sykenpenger is a sick pay benefit. For 16 days of an employee's sick leave, the employer pays, after that the costs are borne by NAV.
Does the employer have to pay income tax on the employee's salary?
Yes, income tax must be paid on the employee's gross salary.

IV BUSINESS COSTS IN NORWAY

Can I pay for goods and services purchased for the business in cash?
You can only make cash purchases up to an amount of NOK 10 000 in one year in order for them to be entered in the company's accounting records and to be accounted for as company costs.
I have a problem with company costs. What, in principle, can be included here?
Any expense incurred directly for the business is treated as a business expense, e.g. a telephone subscription if you need a phone for work.
If I have a business phone, do I have to deduct private calls from the bill, or can I include everything as an expense?
In Skatteetaten you can find instructions on how to calculate the exact cost per phone bill, including private calls.
Can I deduct petrol costs if I use a private car for business purposes?
Sole traders can benefit from the right to deduct petrol and other costs associated with the use of a vehicle.
What information must appear in the driver's log book? Will I need to collect petrol receipts?
The driver's log book should include the date, destination, route and number of kilometres. Receipts proving the purchase of fuel are not necessary.
Can the instalment of a loan for a company car be included in company costs?
No. Only the interest on the loan and depreciation can be considered as business expenses.
Can I include the lease instalment as an expense?
Yes.
I have a contract for two flats, but I only live in one of them. Can the amounts I spend on rent and bills for the second flat be charged to the company?
Yes, if the second flat serves as the company's registered office.

V TAX FOR NORWEGIAN ENTREPRENEURS

What taxes must entrepreneurs pay in Norway?
Entrepreneurs have to pay income tax of 22% on the company's profit, social security contribution of 11.4% on the company's profit and VAT (MVA) if the company is registered for VAT. If the entrepreneur employs employees, he or she must additionally pay employment tax on the employee, which is 14.1% on the employee's gross salary.
I have a sole trader business. Can I benefit from the deduction of the tax-free amount?
The tax-free amount applies to sole proprietorships, but not to companies and other forms of business where the entity is a legal person.
How do I obtain a tax identification number?
You must first register your company with the Enhetsregisteret (Register of Business Entities). For this registration, you must complete the Samordnet registermelding (BR-1010). The form is available online, at Altinn.no or in the traditional version (http://www.brreg.no/blanketter/blankettoversikt.html), which must be printed out and sent to Brønnøysundregistrenew.
How much income tax for entrepreneurs in Norway?
Income tax is 22% on business income.
How much is the Norwegian equivalent of the Polish Social Insurance Institution?
The Norwegian tax, the equivalent of the Polish Social Insurance Institution, is 11.4% of an enterprise's income.
What is the system of paying taxes in Norway?
An entrepreneur in Norway is required to declare an anticipated amount of profit each financial year. From this amount, the office calculates tax of 33.4%, i.e. income tax of 22% and Norwegian Social Insurance of 11.4%. The resulting amount is divided by the office into four equal instalments, which the entrepreneur must pay to the office on a specified date in the form of advance payments.
By when must advance tax payments be made during the financial year?
The first instalment is payable by 15 March, and subsequent instalments by 15 June, 15 September and 15 December.
I did not pay advance tax payments for a whole year. What now?
If an entrepreneur has not paid advance payments for the whole year, he or she can transfer the funds in late April/early May, at the time when the Tax Office sends the tax return for the previous year. At the bottom of the return received, there is an account number and KID. These details are used to transfer a specific amount for advance payments. The entrepreneur determines the amount himself.
By when must a tax return be submitted?
You must submit your tax return by 31 May. The return must include your income and indicate the amount of tax to be paid.
I have underpaid tax. What now?
In the annual tax return that you have received from the office, there is information about the amount of the tax surcharge and the deadline for payment. The downside of this is that the office will add interest to the underpayment.
What does MVA stand for?
MVA is the equivalent of Polish VAT, which in Norway is 25%.
Do all Norwegian companies have to pay VAT?
Certain industries in Norway are exempt from paying VAT (MVA). Businesses such as banking or insurance companies do not have to pay the tax.
Does an AS company have to pay MVA, every two months?
If an AS does not have a turnover of NOK 1 million, it can pay MVA once a year.
Which services in Norway are not subject to tax?
Health, financial, insurance and cultural services (cinema or theatre ticket) are not subject to tax in Norway.
How is VAT settled in Norway?
In Norway, VAT is settled in the form of a return, which usually has to be submitted by entrepreneurs every two months (the Tax Office publishes the exact list of deadlines).
Can tax returns be submitted electronically?
Yes, declarations can be submitted via the web portal altinn.no.
Do I have to pay tax on all gross receipts of a sole proprietorship?
Due to the costs of doing business in Norway, the total revenue is not as important as the total profits of the company. It is on the basis of this that the authority calculates income tax. Minstefradrag is a tax-free amount that only employees are entitled to.
I will soon be closing my business in Norway and would like to settle my annual tax. Can I do this now, before the end of the accounting period?
Unfortunately no. The annual tax return for a business in Norway must be done after you have received your Selvangivelse, which you do not receive until after the New Year.
I run a sole trader business. Do I use the same form to calculate tax as when I order skattekort for private individuals?
Yes, you will need the same document, but filled in slightly differently. You can arrange this by telephone, in person at Skatteetaten or by post.
I would like to purchase goods without VAT in the European Union. Do I need a European TIN and can I get one in Norway?
Norway is not a member of the EU, so you cannot apply for a European TIN number. If you want to avoid paying European VAT on goods purchased in the EU, you must declare your intention to export the goods for VAT recovery. You will then only pay VAT on entry to Norway.
I am a teacher and my income exceeds NOK 50 000. I also provide tutoring. Can I be exempt from paying VAT?
Yes, teachers have a VAT exemption and do not have to pay tax even if their annual turnover exceeds NOK 50 000. However, teachers cannot deduct dues from their business expenses.
Can I apply for a tax reduction if I have a mortgage?
Yes, you can apply for a new tax card via MinSide or in person at the tax office. You will then need to pre-calculate the amount of interest you will pay in the coming year, after which you put this amount on your tax card.

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