Norway is a Nordic country located in Northern Europe, sharing borders with Sweden, Finland, and Russia to the east, and the North Sea, the Norwegian Sea, and the Barents Sea to the west and north. The country has a population of about 5.4 million people and a land area of approximately 385,000 square kilometers.
Norway is known for its natural beauty, with stunning fjords, mountains, and forests, and is a popular destination for outdoor activities such as skiing, hiking, and fishing. The country has a strong economy, based on industries such as petroleum, fishing, and shipping, and is ranked as one of the wealthiest nations in the world.
Types of business structures in Norway
In Norway, there are four main types of legal business structures:
Sole proprietorship
This is the simplest and most common type of business structure, where the owner is responsible for all aspects of the business and has unlimited personal liability for its debts. A sole proprietary business is mostly preferred by individuals with unique skills that require years of practice and experience.
General partnership
A partnership is formed when two or more people come together to carry out a business venture. Partners share the profits and losses of the business and are jointly and severally liable for its debts. A general partnership is one where the debts and liabilities are shared among the partners in respect of their investment ratios. All partners are personally liable for such debts and liabilities that occur in business.
Limited liability company
A limited liability company is recognized as a separate legal entity. Stipulating that the owners of the company are not personally liable for any debts or losses that arise in the course of business. The Liability of the owners is limited to the amount of their investment in the company. In case the company files for bankruptcy, the debtors will be compensated by selling the company’s stock or assets; debtors can not ask the owners to settle the debt directly.
Public limited company
A public limited company is similar to an LLC, but with shares that can be publicly traded. A PLC operates through public funding that is gathered by selling shares of value to the public. The share value may or may not increase after the Initial Public Offering (IPO) depending on the company’s performance. Every shareholder claims ownership of the company to the extent of shares owned. However, this does not give the shareholder right to exercise any authority, unless he/she owns more than 50% of the company’s share, if so available in the market.
Capital requirements
The table below displays the minimum capital required for each legal business format in Norway accompanied by the local name of the entities.
| S# | Type of business | Local name | Minimum required paid-up capital |
| 1. | Sole Proprietorship | Enkeltpersonforetak (ENK) | No capital requirement |
| 2. | Limited Liability Company (LLC) | Aksjeselskap (AS) | €2,742 |
| 3. | Partnership | Ansvarlig selskap (ANS) or Kommandittselskap (KS) | No capital requirement |
| 4. | Public Limited Company (PLC) | Allmennaksjeselskap (ASA) | €92,000 |
The local names are commonly used in legal documents, registration forms, and other business-related communication in Norway. It is important to note that while the local names may differ from the English equivalents, the legal requirements and obligations of each business structure are the same.
Cost and process of registering a company in Norway
The cost of registering a business in Norway depends on the type of business structure and the fees charged by the relevant authorities. Here are some estimated costs for registering a business in Norway:
Sole proprietorship
The registration fee for a sole proprietorship is NOK 1,250. This includes the cost of registering the business with the Brønnøysund Register Centre.
General partnership
The registration fee for a general partnership is €114. This includes the cost of registering the business with the Brønnøysund Register Centre.
Limited liability company (AS)
The registration fee for an AS €600. This includes the cost of registering the business with the Brønnøysund Register Centre and the fee for publication of the company’s articles of association in the Norwegian Register of Business Enterprises.
Public limited company (ASA)
The registration fee for an ASA is €2,000. This includes the cost of registering the business with the Brønnøysund Register Centre, the fee for publication of the company’s articles of association in the Norwegian Register of Business Enterprises, and the fee for a legal audit of the company’s share capital.
It is important to note that these are approximate costs and may vary depending on various factors such as the complexity of the registration process and the services of intermediaries such as lawyers or accountants.
Process of registering a company in Norway
The process of registering a business in Norway involves several steps. Here is an overview of the process:
Choose a business structure
Decide on the type of business structure that best suits your needs. This could be a sole proprietorship, general partnership, limited liability company (AS), or public limited company (ASA).
Choose a business name
Choose a unique business name that is not already registered by another company.
Register the business
Register the business with the Brønnøysund Register Centre, which is the official Norwegian government agency responsible for registering companies. The registration process can be done online through the Altinn portal.
Obtain a business identification number
Once the registration is complete, you will receive a business identification number (Organisasjonsnummer) from the Brønnøysund Register Centre. This number is required for tax purposes and to open a bank account.
Register for VAT
If your business is required to charge Value Added Tax (VAT), you must register with the Norwegian Tax Administration.
Register employees
If you plan to hire employees, you must register with the Norwegian Labor and Welfare Administration (NAV).
Obtain necessary licenses and permits
Depending on the nature of your business, you may need to obtain licenses and permits from other government agencies.
Benefits of doing business in Norway
Norway is a country that offers several benefits for businesses. Here are some of the benefits of doing business in Norway.
Stable and predictable business environment
Norway is known for its stable and predictable business environment, which provides businesses with a high degree of certainty and security.
Skilled workforce
Norway has a highly skilled and educated workforce, with a strong emphasis on innovation and technology.
Supportive business climate
The Norwegian government provides a supportive business climate, with policies and programs aimed at promoting entrepreneurship and innovation.
Strong rule of law
Norway has a strong rule of law and an efficient legal system, which provides businesses with a secure and stable operating environment.
High quality of life
Norway offers a high quality of life, with a high standard of living, excellent public services, and a strong social safety net.
Access to global markets
Norway is a member of the European Economic Area (EEA), which provides businesses with access to a large and diverse market.
Abundant natural resources
Norway has abundant natural resources, including oil, gas, and renewable energy sources such as hydropower, wind, and solar.
These are just some of the benefits of doing business in Norway. With its strong economy, highly skilled workforce, and supportive business climate, Norway is a great place to start or expand a business.
