COMPANY IN NORWAY

FORMALITIES:

In order to establish a company in Norway, you must fill out the Samordnet registermelding BR1010 form found at www.brreg.no - it is necessary to enter, among other things, the owner's data, company name, company address and type of business. Once the application is submitted and the company registration is confirmed, an organizational number is assigned. The next step is to set up an optional company bank account (you must have confirmation of business registration and the company's organizational number). Once the company starts operations in Norway, the entrepreneur should declare the expected income, on the basis of which the Norwegian office will calculate advance income tax. In addition, if the company's income within 12 months exceeds NOK 50,000, it must be registered as a VAT payer.

In order to register a company in Norway, in addition to filling out an application, you need to complete a number of necessary documents, including the opening balance sheet, articles of association and minutes of the meeting. An AS company in Norway requires payment of equity with a minimum value of NOK 30,000 - without confirmation of payment of share capital, the application for business registration will not be accepted. It is possible to establish a company without paying up initial capital - this is Ansvarlig selskap (ANS/DA).

- The company should be established in the territory of Norway,
- the main branch of the company should be located in the territory of Norway,
- company regulations should be included in selskaploven,
- partners should conclude a liability level agreement (selskapaytale),
- the company should have a minimum of two partners,
- DA company does not require initial capital,
- the appointment of a supervisory board is not regulated by law,
- the company should be registered with Foretaksregisteret.

Norwegian ANS and DA companies are similar to limited liability companies - at least one of the shareholders is responsible for financial obligations. The difference between the two is related to the division of liability - in an ANS company, liability is divided equally between the shareholders, liability in a DA company is regulated by an agreement between them.

Establishing an AS company in Norway involves the obligation to have initial capital - NOK 30,000, which can be in the form of fixed assets. The fee for entry in Foretaksregisteret is NOK 5,570 (electronically) or NOK 6,797 (paper application). Add to the basic costs the cost of bookkeeping services in Norway, incorporation and board meeting minutes, and the cost of various forms - fixed asset protocol, making D-nummer. In total, these expenses can reach up to NOK 15,000.

Formalities for setting up a company in Norway usually take between 5 days and 6 weeks (this depends on whether the application was sent by mail or electronically through the Altinn.no portal).

The organizational number is the equivalent of the Polish NIP in Norway - it is assigned to sole proprietorships and legal entities and is used in administrative matters - taxes, insurance premiums. The organizational number is also found on invoices issued by the company, and banks and financial institutions require it, for example, to open a company account.

In order to be assigned a tax identification number, you must have a source of regular income in Norway or come with a parent or spouse who works in Norway. When registering a company, along with the company registration application, you must fill out a form (here) and send it to Brønnøysundregistrene.

To change the company details you need the Samordnet registermelding form BR1010 from the Brønnøysundregistrene website:
- box 1.1 - enter the name and organizational number,
- Box 2.2 - indicate that a change will be made,
- Box 4 - indicate the new address,
- Box 18 - enter the date and sign.
The completed application is sent to the office - the change can also be made electronically through the Altinn.no portal.

To change a company's name, you must use the document previously used to register a business (Samordnet registermelding BR1010) - changing the company's data is free of charge when the business is listed only in Enhetsregisteret, if the company is also registered in Foretaksregisteret, the change will cost NOK 2,250 (electronic version) or NOK 2,832 (paper version).

To change the name of a Norwegian company, you must use the document previously used to register a business - Samordnet registermelding BR1010.

Running a business in Norway does not require a registered address - however, it is necessary to have a registered office in Norway. A registered address is mandatory if your planned stay is longer than six months.

In Norway, a company can be "closed" - however, you should remember to keep the deadlines for filing tax returns (annual return or VAT return). In addition, the entrepreneur should pay advance payments for income tax.

To take a business start-up loan it is necessary to submit a business plan and a budget - the bank will consider the application and calculate the financial risk - on this basis it will grant or deny the requested loan.

In the industries listed by the office, workers are guaranteed minimum wages. Their amount can be checked here.

An unemployed person can apply to NAV, where he or she will be assisted with professional advice and possible financial support for start-up costs - the basic condition is the submission of a business plan.

All fields of activity should be included in the company's scope of activity - to make an entry of the scope of activity, the appropriate form must be filled out.

A permanent personal number is not necessary to establish a company in Norway - an entrepreneur can have a temporary D-nummer personal number.

All necessary documents should be translated into Norwegian or English. Confirmation of company data abroad also requires providing an extract from the register of activities - confirmation from either KRS or CEIDG (depending on the legal form of the company).

Any citizen of the European Union can run a business in Norway - the establishment of a company and all related fees and procedures are the same as for businesses run by Norwegians.

Usually, Brønnøysundregistrene assigns an industry code itself - but there is a list (here). The authority assigns the company's industry code to the field that is first entered in the application, so it is a good idea to list the company's main field of activity as the first one.

BUSINESS COSTS:

Business costs are a.k.a. company costs - any expenses that a company has incurred in order to be able to generate revenue, such as the cost of materials, machinery or equipment.

It is possible, but cash payments during the year must not exceed NOK 10,000 - only then can cash purchases be entered in the company's accounting records in Norway. For companies, a Dagsoppgjør printout is required to register cash transactions.

This is only possible if you are a sole proprietor - it is necessary to keep a log book (kjørebok) - gasoline should not be deducted, only gates, ferries and parking related to business trips.

The cost of calls will be a business expense only if the phone was used for business purposes - it is difficult to show calls for private and business matters, so the Norwegian authority has assumed that the amount of NOK 4392 should be withdrawn from expenses at the end of the year.

There is no such possibility - only business calls can be added to business expenses - the Norwegian tax authority has provided a formula on its website for accounting for expenses for private calls.

A car installment is not a business expense - only interest on a loan or depreciation of a fixed asset is an expense.

Lease payments can be treated as a business expense.

If a business is conducted in rented premises, the cost of rent and electricity charges are treated as business expenses - if part of the apartment is used privately, the costs should be deducted proportionally, i.e. depending on the area of the premises that is used for business purposes in relation to the area of the entire premises, the amount of costs that the company actually incurs should be calculated, e.g. if the apartment is 50m2 and the room where the office is located is 10m2, only 20% of the expenses for the apartment can be recognized as business expenses.

For such a person, the employer pays advance income tax on account of work. However, you still need to be aware of the installments for advance payments that you pay as an entrepreneur - March 15, June 15, September 15 and December 15. An entrepreneur in Norway is required to pay a fee of 22% on company profit for income tax and 11.4% on company profit for mandatory social security. The amount of the advance tax payment is calculated by the authority on the amount a person has declared. One must also remember the 25% VAT that applies to companies listed in the VAT register.

TAXES, BENEFITS:

An entrepreneur pays income tax (at 22%), social security contribution (at 11.4%), VAT (MVA) (when the company is registered for VAT) on profit. In addition, companies that hire employees pay tax: on the employment of the employee - Arbeidsgiveravgift - at a rate of 14.1% to 0% (depending on the zone) and advance income tax Forskuddstrekk - depends on the Skattekort the employee receives from the office (if the employer does not receive a tax card from the employee then he is obliged to deduct 50% of the advance from the salary).

In order to receive a company tax identification number, you must register your business with the Register of Business Entities - Enhetsregisteret. You need to send the form BR-1010 electronically (it is available at www.altinn.no) or traditionally a paper version to Brønnøysundregistrene - the office sends a confirmation of the company registration, on which the organizational number will be visible.

In order for the office to calculate advance tax payments, you must fill out the application for ordering a Norwegian tax card SØKNAD OM ENDRING AV ELLER KRAV OM SKATTEKORT - you need to provide the expected value of the company's income for the year.

Norwegian income tax is paid in the form of an advance payment - payments are made four times a year (by March 15, May 15, September 15 and November 15). The Authority itself calculates the amount of advance payments based on the anticipated profit of the company given by the entrepreneur - the entrepreneur receives a giro with the installment to be paid.

If the entrepreneur has not paid advance payments of income tax, the outstanding amount of advance payments should be repaid in late April/early May of the following year - the office will send a preliminary annual return, which shows the bank account number along with the KID number (tax transfer made before May 31 will not include interest).

If an entrepreneur has an underpayment of tax, it is necessary to pay the arrears in accordance with the amount and date of repayment given by the Norwegian office in the tax return - Skatteoppgjør (interest is added to the missing amount of tax).

The deadline for filing returns for the previous tax year is May 31.

The tax thresholds in Norway for 2021 are:

• up to NOK 184,800 - 22%
• from NOK 184,800 to NOK 260,100 the excess is multiplied additionally by 1.7%
• from NOK 260,100 to NOK 651,250 the surplus is multiplied additionally by 4%
• from 651 250 NOK to 1 021 550 NOK we multiply the surplus by an additional 13.2%
• from 1 021 550 NOK the surplus is multiplied additionally by 16.2%

Feriepenger is a minimum of 10.2% gross of salary - a benefit intended for employee leave.

Arbeidsgiveravgift - ranges from 14.1% to 0% of an employee's gross salary (the rate depends on the national zone) - is a mandatory fee paid by an entrepreneur who hires employees.

Sykepenger is the equivalent of Polish sick pay - for the first 16 days of sick leave the employer pays, then NAV takes over this obligation. However, in the case of an entrepreneur, NAV pays the benefit only from the 17th day of dismissal - in order to receive the benefit from the first day of dismissal, you should take out additional insurance.

The employer is required to withhold advance income tax (Forskuddstrekk) from the gross salary of each employee.

Advance income tax and Social Security fees are paid once every two months.

The basic pension contribution is included in the mandatory insurance premium (11.4%).

There is a form (RF-1038) that allows early tax settlement for a foreign employee - this can be provided by those who have been in Norway for less than 183 days in 12 months or less than 270 days in 36 months at the end of the contract.

Innskuddpensjon is a contract between an employer and an employee in which the employer agrees to contribute a portion of the employee's salary to the employee's future pension.

Income tax is calculated on the amount of profit - the tax base is the difference between revenues and business expenses.

If the spouse in a given tax year earned income of less than half of the Grunnbeløp amount, the business owner is entitled to use the reliefs of the second tax class. Note: in 2018, the second tax class in Norway will be eliminated.

Members of the Norwegian social security system are entitled to sickness benefit - for illness, NAV pays benefit from the 17th day of sick leave. The benefit from the first day of illness is guaranteed by additional voluntary insurance.

Sickness benefit is paid from the 17th day of sickness and is equal to 65% of the average income from the last three years of business - it can be used by all people running a business in Norway.

Obtaining medical advice in Norway involves paying a so-called deductible (egenandel), which is not reimbursable - its amount depends on the time of day, type and location of the visit.

Interest on the loan is included in the annual return and reduces the basis according to which the tax is calculated - so you can get a larger refund of the tax paid.

Health, financial, insurance and cultural services are not subject to VAT in Norway.

The Norwegian social insurance system covers all persons living in Norway - every legally employed employee and business owner is a member of the Folketrygden. If an entrepreneur benefits, NAV pays the benefit from the 17th day of illness-but there is the possibility of additional insurance, which means payment of benefits from the first day of illness. You must sign an insurance contract with NAV or another insurer and pay the additional premiums under the contract.

Norwegian insurance is recognized in Poland - you must prove your membership in the Norwegian social security system by presenting one of the following documents: - EHIC (European Health Insurance Card) - the card authorizes the holder to receive medical services during a temporary stay in a country that is a member of the European Union, EEA (European Economic Area) or Switzerland. On the basis of the EHIC, its holder has the right to receive medical services on the principles applicable to residents of the country where he/she is temporarily staying. An EHIC can be obtained by a person who is a member of the Norwegian social security system and has citizenship of Norway, one of the countries of the European Union, the EEA or Switzerland. EHIC cards in Norway are issued by HELFO (Helseøkonomiforvaltningen).

- Form S1 - formerly form E-106 and E-109, which under Norwegian insurance allows access to medical services in EEA countries. The form can be obtained by persons who:
- are employed by a Norwegian employer, are self-employed in Norway or receive unemployment benefits,
- pay social security contributions or advance income tax in Norway,
- have a permanent address of residence in an EEA country (other than Norway),
- have citizenship of an EEA member state.

Giro is a mandatory fee charged to companies in the construction industry - RVO's program is aimed at improving working conditions and safety, and its representatives appear at construction sites and inform about regulations on construction work. The amount of the fee depends on the number of workers employed - the minimum amount charged to companies with no employees is NOK 250. The giro is 0.03% of gross salary based on the past year.

Maternity leave is available to women who have earned income at a level determined by the government for at least six of the ten months preceding the maternity leave.

If an entrepreneur is simultaneously employed, all income he or she earns will be taken into account.

VAT:

A business in Norway whose turnover in the following 12 months does not exceed NOK 50,000 - does not have to pay VAT. In a situation where the turnover is greater than the indicated amount, you must make an entry in the VAT register. Tax rates for branches of foreign companies (NUF) are identical to those for Norwegian companies, but the tax is paid by a representative who calculates and pays VAT in Norway on behalf of the foreign company.

For those taxpayers who have declared annual VAT, the deadline for settling the return is March 10 of the following year.

The VAT return is used to show the amount of VAT that has flowed into the company (revenue invoices) and that has flowed out of the company (expense invoices) - the difference between these values is the amount to be paid or refunded.

To check whether a company is a VAT payer, just visit the office's website: www.brreg.no and verify the status of the company in question - if the business is registered, the following information should appear there: Registrert i Merverdiavgiftsregisteret.

The frequency of paying VAT depends on the company's turnover - an AS company in Norway can pay the tax once a year if the annual turnover does not exceed NOK 1,000,000 (this option should be marked on the registration application). If the company wants to make a change, it can do so by the end of January (for the year currently in progress), but the tax authority has the right not to allow the type of settlement when the company has tax arrears.

Norway is not a member of the European Union, which means that there is no possibility of assigning a European TIN number - to avoid unnecessary costs you can buy goods in an EU country, and at the border inform about the export of products. Individuals or companies that are not VAT pay tax on entry to Norway - companies that are registered in the VAT register only show the import in the tax return.

In a situation where the company will not make money on the materials purchased for the customer (when performing a service), you need to mark two items on the invoice: service and materials. You should calculate the cost of materials from all receipts and invoices (net and VAT amounts) that apply to the customer, and then when issuing the invoice in the item: materials, enter the corresponding amount. In addition, all expenses for purchases should be included in the company's expenses - the same amount will appear in income as in expenses, and the company will come out at zero tax.
In a situation where the company will earn money on materials, a higher value than the sum of expenses for the purchase of materials is entered in the revenue invoice - taxes will be charged on the difference between the company's income and expenses for the purchase of materials. Note that a business engaged in trade should be entered in the Foretaksregisteret.

During the registration process for VAT payers, you can issue invoices for the net amount alone and only later (after the registration process is completed) send invoices for VAT to the respective customers for these net amounts. To post this type of invoice, you need to use accounting accounts - 1500 dt / 2700 ct. To post the payment of the outstanding amount of tax that the customer has made, you need to use accounts: 1920 dt / 1500 ct.

EMPLOYEES IN THE COMPANY:

Every employee should register with the police and produce a tax card (Skattekort). The employer is required to report the employee through Altinn.no (print A-melding) - a company that employs employees should be registered with NAV Aa-registeret.

The employee should be reported to NAV no later than Friday of the following week after the first week of work.

The cost of hiring an employee is divided into fixed costs and variable costs. Fixed costs are a total of about 26.3% on the gross salary amount, and variable costs are about 5% on the gross salary amount. Fixed costs are Arbeidsgiveravgift (employment fee), OTP pension insurance, feriepenger. Variable costs depend on the scope of the company's activities - they relate to sickness benefits, accident insurance, training necessary for the job, work clothes, etc.

The employer is not obliged to pay for periodic examinations of employees - the fees are voluntary. However, in some industries regular examinations are necessary, in which case the employer should enter into an agreement with a medical unit and cover the costs of these examinations.

Norwegian regulations do not regulate the maintenance of personnel files - they do not specify the documents that should be in them.

The file is maintained by the accountant of the respective company.

Employing a spouse is not possible - the solution is to run the company jointly without reporting such a change to the authority. It is necessary to fill out an application for a tax card - in the annual tax return, the previous year's income must be divided between the spouses.

INVOICES:

A Norwegian invoice should contain: the invoice number, the company's organizational number (the "MVA" symbol at the end indicates that the company is a VAT payer), the date of the invoice, the due date, the seller's details (company name and address), the buyer's details (name/company name, address), the seller's bank account number, the net, VAT and gross price of the goods/services.

The company should be registered with Brønnøysundregistrene - the entrepreneur will receive confirmation of the company's registration and the organizational number necessary to establish a company bank account. Once the company has started operations, it can start issuing invoices.

Invoice numbering is continuous - this means that in the new year the numbering from the previous year must be continued.

The customer number is permanent and does not change over time.

Having a company in Norway is necessary to be able to issue invoices - you must have a Norwegian organization number.

PERMITS:

Cleaning companies are required to have an Authorization (Godkjenning) issued by the Norwegian Labour Inspectorate. In addition, each company employee and owner should have a Renholdskort ID.

Information about the granting of a permit can be found on the website of the Norwegian Labor Inspectorate - the status should be set to Godkjent.

Providing Byggekort to construction workers is the responsibility of the owners of the companies they work for - it is the employer who should equip each employee with an ID badge and monitor its validity (up to two years).

In Norway, construction companies are required to equip employees with Byggekort badges (issued by Idemia Norway AS, and in previous years it was Oberthur Technologies). The badges contain basic information about the cardholder to help identify him or her.

Byggekort can be extended using the website: www.byggekort.no - the ID and password established during the first login is necessary.

Some construction work requires confirmation of the employee's qualifications (electrical work or work at heights), but you can perform simple construction work without confirmation of skills in the form of completion of special courses.

In order to set up a car repair shop in Norway, you must have special permits for certain activities, including air conditioning repair, electronics and sheet metal services, and most importantly, recognition of the profession of car mechanic. Permits are not required if the services performed in the workshop are not related to safety.

In order to start a cosmetics-related business, it is necessary to obtain a permit from the municipality where the business is to be conducted - it is also necessary to meet a number of strict sanitary requirements.

To obtain a transport permit, you must apply to the appropriate municipality and complete a course.