Accounting and tax issues can be challenging for foreign companies doing business in Norway. The most appropriate organizational form for your company should be researched and evaluated. A decision should be made based on forecasts, current facts and the way you’re operating.
The three most common forms of organizations in Norway are limited companies, sole proprietorships and Norwegian Foreign Enterprise (NUF).
In recent years, Norwegian Foreign Enterprise (NUF) has grown in popularity. It is described as a division of the foreign company, with the foreign company as the legal entity. This is the easiest and most affordable way to register a foreign company in Norway. The simplicity and affordability are two of several reasons why this type of registration has become very attractive.
There are several benefits connected to registering a company in Norway. If you are selling goods to Norway using a registered company, you will have several competitive advantages. You can serve your customers throughout the business process, from A to Z. You are able to handle the importation of goods, including the customs clearance and payment of VAT at the border. By doing so, your customers will not have to be concerned with these tasks.
When registering a NUF, a VAT representative in Norway is necessary. NUF companies will not be taxable to Norway, as the arrangement of having a VAT representative assumes that the company does not have a business address or a location in the VAT area.
The following two scenarios make it a necessity to register a company in Norway:
Scenario one; you are going to have personnel at work in Norway. Most services carried out within Norway are taxable. The service performed must be invoiced with Norwegian VAT from a Norwegian organization number. The turnover must be reported to the Norwegian Tax Administration (Skatteetaten). The company will also be obliged to report both work carried out and the employee’s salary and employment conditions to the Norwegian Tax Administration.
Scenario two; your company is going to import machines to Norway. For example, to rent them out to Norwegian customers. The legal owner of the object must handle the clearance and payment of VAT according to Norwegian law.
For more information about registration of company in Norway or handling of Norwegian VAT, please contact us.
E-mail: post@kghav.com
Phone: +47 69 21 40 00