Norway is one of the world’s most prosperous and stable economies, renowned for its high quality of life, advanced technology sector, and sustainable business practices. As a member of the European Economic Area (EEA), Norway provides access to the broader European market while maintaining its own currency and regulatory framework. The country boasts a highly educated workforce, excellent infrastructure, and strong government support for innovation and digitalization. Key growth sectors include oil and gas, maritime, technology, renewable energy, and financial services. Norway’s robust legal system, transparent business environment, and commitment to environmental sustainability make it an attractive destination for international businesses seeking long-term growth in Northern Europe.
Unlock growth opportunities in Norway with Cerity Global as your trusted partner. We offer end-to-end support for establishing your legal entity, navigating Norway’s often complex regulatory landscape with clarity and efficiency.
From company registration to ongoing back-office support, including HR, payroll, benefits, accounting, tax and compliance, Cerity Global simplifies the process so you can focus on growing your business.
Need to hire quickly before your entity is set up? We offer interim EOR services in Norway, enabling you to onboard talent fast. Once your entity is established, we ensure a smooth transition of your employees from the EOR Structure to your own legal entity, without disrupting payroll or compliance.
Our experts stay ahead of regulatory changes to keep your operations aligned with Norway’s employment and tax laws, helping you scale confidently and compliantly.
The most popular choice for international businesses, a Private Limited Company (AS) offers limited liability protection and is suitable for most commercial activities. An AS can have 1 to 200 shareholders and allows 100% foreign ownership in most sectors. The company must have a board of directors and can issue different classes of shares, making it ideal for businesses seeking investment or planning for growth.
The simplest business form in Norway, suitable for individual entrepreneurs and small businesses. The owner has unlimited personal liability for business debts and obligations. Registration is straightforward and requires no minimum capital. This structure is ideal for freelancers, consultants, and small service providers who want minimal administrative burden.
A partnership between two or more parties who share profits, losses, and unlimited liability. General partnerships (ANS) have all partners with unlimited liability, while limited partnerships (Kommandittselskap – KS) allow some partners to have limited liability up to their capital contribution. Partnerships are suitable for professional services and collaborative business ventures.
A NUF allows foreign companies to conduct business activities in Norway through a local presence without establishing a separate legal entity. The foreign parent company remains fully liable for the NUF’s obligations. This structure is suitable for companies testing the Norwegian market or conducting specific projects without long-term commitment.
A branch office is an extension of a foreign company that conducts business activities in Norway. It operates under the parent company’s name and liability. While simpler than establishing a subsidiary, branch offices may face certain regulatory restrictions and tax implications.
A representative office allows foreign companies to conduct market research, promotional activities, and liaison functions without engaging in direct commercial activities. It cannot generate revenue in Norway and primarily serves as a communication link between the parent company and Norwegian market participants.
At least half of the board members and the managing director (if appointed) must be residents of Norway or another EEA country. Non-EEA residents can serve as directors but may need special permits. The board must consist of at least one member, though companies with share capital exceeding NOK 3 million require at least three board members.
The owner must be registered in Norway and obtain a Norwegian organization number. Foreign nationals need appropriate residence, or work permits to operate as sole proprietors.
At least one general partner must be resident in Norway or another EEA country. Non-EEA residents may need special authorization to act as general partners.
Must have a responsible manager who is resident in Norway or another EEA country. This person acts as the local representative with authority to bind the foreign company.
Bank account setup in Norway follows strict procedures due to comprehensive anti-money laundering regulations:
Bank Account Setup in Norway: Process and Requirements
Before Incorporation:
After Incorporation:
Note:
Norway’s banking sector has stringent KYC and AML requirements. Enhanced due diligence is mandatory for all foreign-owned entities, and banks may request additional documentation or guarantees.
Required documents include certificate of incorporation and Articles of Association, extract from the Register of Business Enterprises, board resolution authorizing account opening, identification and background information for all directors and beneficial owners, business plan and proof of business activities, proof of registered office address, and organization number from Brønnøysund Register Centre
Cerity Global supports companies in their global expansion plans and helps in legal entity setup, registration and ongoing support services. With us, you can quickly set up a legal entity, operate compliantly, and expand globally. Banking and account activation timelines vary by bank and the completeness of documentation; allow several business days to a few weeks in practice.
Employment in Norway is primarily governed by the Working Environment Act and related legislation:
The Working Environment Act (Arbeidsmiljøloven)
Employment contracts must be in writing within one month of employment commencement and provided in Norwegian or a language the employee understands.
Some of the standard details mentioned in the written contract include:
The different types of employment relationships are:
Permanent Employment
The standard form of employment where employees work under indefinite-term contracts with full rights under Norwegian labor law. Permanent employees enjoy strong job security and comprehensive benefits, including pension rights and full holiday entitlements.
Fixed-Term Employment
Employment contracts with specific end dates, permitted only in certain circumstances such as temporary replacement, seasonal work, or specific projects. Fixed-term contracts are strictly regulated and cannot exceed four years in total, including renewals.
Part-Time Employment
Employees working fewer hours than the standard full-time schedule (typically 37.5 hours per week). Part-time employees have proportional rights to benefits and strong protection against involuntary part-time work.
Temporary Agency Work
Employment through staffing agencies, subject to strict regulations. Agency workers have rights to equal treatment regarding pay and working conditions after certain periods.
In Norway, the probationary period can be up to 6 months for most positions and is commonly used to assess suitability for permanent employment. During this period, both parties can terminate employment with 14 days’ notice.
The standard working hours in Norway are 9 hours per day and 40 hours per week, averaged over a 52-week period. Many employees work 37.5 hours per week under collective agreements. The working time can be organized flexibly within legal limits.
Overtime
Overtime is limited to 10 hours per week, 25 hours per four-week period, and 200 hours annually.
Notice periods in Norway vary based on age and length of service:
Severance pay is not mandatory but may be provided in cases of redundancy or as part of negotiated settlements. Strong employment protection requires objective justification for dismissals.
Foreign nationals can live and work in Norway by securing appropriate work authorization. EU/EEA citizens have the right to work freely, while non-EU/EEA nationals require work permits tied to specific job offers.
Work Visa & Permit Options in Norway
Skilled Worker Permit
For foreign nationals with higher education or vocational training.
Seasonal Worker Permit
For temporary work in agriculture, forestry, or tourism sectors.
Specialist Permit
For highly qualified specialists in shortage occupations.
Intra-Company Transfer (ICT) Permit
For employees transferring within multinational companies.
Self-Employment Permit
For entrepreneurs and freelancers.
Key Requirements:
Norway has streamlined work permit processes for qualified professionals while maintaining high standards for worker protection and integration.
Employees are entitled to 25 working days (5 weeks) of paid annual holiday. Employees over 60 years receive additional days. Holiday pay is calculated at 12% of annual earnings (10.2% for employees over 60) and must be paid before the holiday period.
Employees receive full pay during sick leave, with the employer covering the first 16 calendar days and the National Insurance Scheme covering subsequent periods up to 52 weeks. A medical certificate is required after 4 days of sick leave.
Female employees are entitled to up to 49 weeks of paid parental leave at 100% salary or 59 weeks at 80% salary. 15 weeks are reserved for the mother (including 3 weeks before birth), 15 weeks for the father/co-parent, and the remainder can be shared between parents.
Fathers are entitled to 15 weeks of paid paternity leave, which is non-transferable. Additional shared parental leave can be taken in agreement with the partner.
Parents can take unpaid parental leave until the child turns 3 years old, with the right to return to the same or equivalent position.
Employees are entitled to up to 10 days of paid leave annually to care for sick children under 12 years old, with additional days for children with chronic illnesses or disabilities.
The following statutory national holidays are observed in Norway:
The most common pay frequency is monthly, typically paid around the 15th of each month.
Payslips are mandatory and must include detailed breakdown of gross salary, deductions, taxes, and net pay in Norwegian.
Norway does not have a statutory requirement for a 13th month salary. However, employees receive holiday pay (feriepenger), which is a statutory benefit that provides payment for vacation days. Additionally, some Norwegian companies may offer a performance incentive or employee benefit, but it is not a universal practice or legal entitlement
Norway has a comprehensive welfare system with mandatory contributions:
National Insurance Scheme (Folketrygden)
Occupational Pension
Other Mandatory Benefits
Accounting standards in Norway follow Norwegian Generally Accepted Accounting Principles (Norwegian GAAP) based on the Norwegian Accounting Act, with larger companies required to use International Financial Reporting Standards (IFRS).
Companies in Norway must file annual reports with the Register of Business Enterprises:
Statutory audit is required for companies that exceed two of the following thresholds:
Public limited companies (ASA), financial institutions, insurance companies, and companies with more than 200 shareholders have mandatory audit requirements regardless of size.
Audits must be conducted by qualified auditors certified by the Norwegian Institute of Public Accountants (Den norske Revisorforening).
The standard corporate income tax rate is 22% for all Norwegian companies on worldwide income. Foreign companies are taxed only on Norwegian-source income.
Norway levies VAT at the following rates:
VAT registration is mandatory for businesses with annual turnover exceeding NOK 50,000.
Corporate income tax returns are due 5 months after financial year-end. VAT returns are typically filed every second month (bi-monthly) by month-end + 1 month.
Penalties for late filing and tax non-compliance can include monetary fines and criminal penalties for serious violations.
Norway has comprehensive transfer pricing regulations requiring arm’s length pricing for controlled transactions:
Norway has implemented CbC reporting requirements:
Norway follows OECD transfer pricing documentation standards:
Master File
Local File
As part of the EEA Agreement, Norway has implemented the EU General Data Protection Regulation (GDPR) through the Personal Data Act. The Norwegian Data Protection Authority (Datatilsynet) supervises compliance.
Norway’s AML framework is governed by the Anti-Money Laundering Act (Hvitvaskingsloven) and supporting regulations:
Obligated entities: Banks, financial institutions, insurance companies, real estate agents, lawyers, accountants, trust and company service providers, dealers in high-value goods, and other designated businesses.
Key requirements:
Penalties: Administrative fines up to NOK 10 million or 10% of annual turnover for legal entities, plus potential criminal liability including imprisonment up to 6 years for serious violations.
Reasons you should setup legal entity in Norway:
Cerity Global ensures your business expansion in Norway is fast, compliant, and future-ready, so you can focus on growth while we manage the back-office tasks.
Economic figures are subject to change based on quarterly reports and market conditions.
Cerity Global combines deep local knowledge with proven expertise to make your Norway business establishment effortless and compliant. Whether you’re looking for legal entity setup and registration or ongoing support, we’re your trusted partner for sustainable global expansion in Norway.
Disclaimer – The information provided is for informational purposes only and does not constitute legal, business, or tax advice. Entity setup requirements, tax rates, and economic data are subject to change and may vary by location.
To discuss your needs and how we can help you achieve a compliant and efficient expansion.