Foreign companies that are active in Norway or do business in Norway have to deal with a raft of accounting and tax-related issues. They must consider which company type is most appropriate to their business – so the choice of company type is absolutely fundamental. The three most common company types in Norway are Private Limited Liability Company (aksjeselskap), Sole Proprietorship (enkeltpersonforetak) and Norwegian Registered Foreign Company (norsk utenlandsk foretak, or NUF).
Registering a Norwegian Registered Foreign Company has become increasingly common in Norway in recent years. It is labelled as a branch of the foreign company, with the foreign company as the legal entity. This is the simplest and most inexpensive way for a foreign company to register a company in Norway, and these are two of several reasons this company form has become so popular and attractive.
There are many benefits to registering a company in Norway
If you wish to sell products to Norway, registering a company there gives you a competitive edge on the market, as you can serve your customers the whole way from source to destination. You are responsible for importing the products, including customs clearance and payment of VAT at the border, so your customers can leave all that to you.
If you register an NUF, you will need a VAT agent in Norway. Norwegian Registered Foreign Companies are not domiciled in Norway for tax purposes, since having a VAT agent presupposes that the company is not established or resident in the VAT area.
There are two situations when you have to register a company in Norway
The first is if you will have personnel working in Norway. Most services conducted on Norwegian soil are taxable. The service conducted in Norway must therefore be invoiced including Norwegian VAT from a Norwegian registered number, and the taxable turnover must be periodically reported to the Norwegian Tax Administration. Furthermore, your company is obliged to report both the employment, and the employees’ salary and terms of employment to the Tax Administration.
If you are clearing machines through customs into Norway, for instance if you are hiring to Norwegian customers, here too you will need to register a company in Norway. It is the legal owner of the item who is responsible for customs clearance and payment of VAT.
Would you like further information about registering a company in Norway or dealing with Norwegian VAT?
Please contact KGH Accountancy & VAT Services AS, or go to www.kghav.no
firstname.lastname@example.org, +47 69 21 40 00