Norway is known for its stable economy, supportive business environment, and high-quality infrastructure, making it an attractive destination for entrepreneurs. Whether you are a local or a foreign investor, setting up a new business in Norway requires careful planning and compliance with local regulations. This article outlines the key steps to start a new business in Norway, from choosing a business structure to registering your company and ensuring compliance with tax and employment laws.
1. Choose a Business Structure
The first thing you need to know on how to start up a new business in Norway is selecting the right legal structure. The most common business entities include:
Sole Proprietorship (Enkeltpersonforetak – ENK) – Best for small businesses run by one individual. The owner is personally liable for debts.
Private Limited Company (Aksjeselskap – AS) – A popular choice for larger businesses. Requires at least NOK 30,000 in share capital, but limits personal liability.
General Partnership (Ansvarlig selskap – ANS/DA) – Suitable for businesses with two or more owners sharing responsibility for debts.
Branch of a Foreign Company (NUF – Norskregistrert Utenlandsk Foretak) – Allows foreign companies to establish a presence in Norway without forming a separate legal entity.
Selecting the right business type depends on factors such as liability, taxation, and investment requirements.
2. Register Your Business with the Authorities
Specifically, in Norway, in order to carry on a business entity, it is mandatory to register at the Brønnøysund Register Centre. The registration process includes:
- Choosing a unique business name (must not be already registered).
- If needed, Registering with the Norwegian Register of Business Enterprises (Foretaksregisteret), (mandatory for AS companies).
- Applying for a Norwegian organization number through the Brønnøysund Register Centre’s online portal.
It is quite easy for most businesses to register through the official website for business services known as Altinn.no of the Norwegian government.
3. Obtain Necessary Licenses and Permits
Some forms of commercial undertakings are permissible only under certain licenses or permits. Common industries requiring permits include:
- Any business that deals with food and beverages sales will need hygiene and alcohol licenses.
- Construction companies (require industry certification).
- Health related services, require prior approval from the Norwegian Directorate of Health.
You should consult us the Norwegian Business Authority to seek the approval before you engage in any business operation in the country.
4. Open a Business Bank Account and Secure Financing
A Norwegian business bank account is needed for performing business transactions. For Aksjeselskap (AS) companies, the bank must confirm that the required share capital (NOK 30,000) has been deposited before registration is completed.
If you need additional financing, you can explore:
- Bank loans from Norwegian financial institutions.
- You can apply for Government grants and subsidies from Innovation Norway, which supports startups.
- Look into venture capital and private investors for high-growth startups.
5. Register for Taxes and VAT
All businesses in Norway must comply with tax regulations. The key tax requirements include:
Every business which is operating in the country of Norway is subject to the tax laws. The key tax requirements include:
Corporate Tax – Norwegian companies pay a 22% corporate tax on profits.
Value-Added Tax (VAT) – Businesses with an annual turnover of more than NOK 50,000 must register for VAT (MVA-registeret) and charge 25% VAT on goods and services.
Employer Contributions – For the employees, businesses needs to register with the Norwegian Tax Administration and pay social security contributions.
It is recommended to work with a Norwegian accountant or tax advisor to ensure compliance. Read this for reference.
6. Hire Employees and Comply with Labor Laws
If your business has employees, you must
- Register with the Norwegian Labour and Welfare Administration (NAV).
- Follow Norwegian employment laws, which include employee rights, minimum wages (in regulated industries), and workplace safety standards.
- Provide mandatory pension contributions and social benefits.
Norway has strong labor protections, so it’s important to understand employer obligations before hiring staff.
7. Promote and Grow Your Business
Once your business is legally set up, focus on marketing and growth strategies:
Build a Website – A strong online presence is essential for businesses in Norway.
Use Social Media Marketing – Platforms like Facebook, Instagram, and LinkedIn can help attract customers.
Join Norwegian Business Networks – Groups like the Norwegian Chamber of Commerce can provide support and networking opportunities.
Additionally, investing in digital advertising, search engine optimization (SEO), and local networking can help grow your brand in the competitive Norwegian market.
Conclusion
Starting a business in Norway is a well-structured process, thanks to the country’s efficient regulatory system and strong economic stability. By selecting the right business structure, registering with the authorities, complying with tax and employment laws, and adopting effective marketing strategies, you can successfully establish and grow your business.
If you are a foreign entrepreneur, seeking local legal and financial advice can further ensure a smooth business setup. With the right approach and planning, Norway offers an excellent environment for new businesses to thrive.
