Norway – Ready Made Shelf Companies – Company Formation

Norway

The Kingdom of Norway is a European country that is located in the Scandinavian Peninsula. Although it has a population of approximately 5.3 million, in terms of development and economy it is one of the most advanced countries in the world. Norway has two offshore dependencies: Svalbard and Jan Mayen.

Norway is a member of European Economic Area but decided not to join the EU. The state’s official currency is krone (NOK). The official languages are Norwegian (which has two variants: bokmål and nynorsk) and Sami (the language of the indigenous people living in the territory of Norway).

Norwegian companies need to register with the Brønnøysund Register Centre (Brønnøysundregistrene). The most common business structures are sole proprietorship, private limited company (AS) and general partnership (ANS/DA). Of course, foreign companies may operate in Norway through branches (NUF). The most important piece of regulation for business is Companies Act.

Private limited companies are the most investor-friendly. The minimum share capital of an AS is 30,000 NOK (approximately 3,000 EUR). The owners’ liability is limited to the amount of their contribution. Businesses are under obligation to keep accounting documents and submit annual returns to the Register of Company Accounts. Audit obligation applies to companies with turnover over 6 million NOK a year. Smaller entities may choose to opt out.

Shareholders must hold a general assembly once a year to approve of the financial statements. The Board of Directors is appointed by the general assembly and is chaired by the General Manager. At least half of the Board members need to reside in EEA. The Board may also consist of a single member.

Corporate income tax in Norway is 22%. However, entities operating in the financial sector pay an increased, 25% tax. The tax is levied on worldwide income. Special provisions apply to the oil and hydro-electric industry. Companies receiving dividends from entities outside EEA are almost fully exempt from the dividend tax provided the Norwegian company has been in possession of at least 10% of shares in the non-EEA company for two years or longer. Exit tax provisions exist. Losses may be carried forward indefinitely.

Norway is an advanced economy and a country with one of the highest human development index and ease of doing business. It is known as the holder of the world’s biggest sovereign wealth fund. The most important industry is the petroleum sector, due to oil reserves in the North Sea. Crude oil and petroleum products constitute over 50% of the country’s exports.

Politically, Norway is a constitutional monarchy. The current head of state is King Harald V. The monarch’s powers are mostly symbolic. The Prime Minister is the head of the Council of State (Statsrådet), the state’s main executive body. The Norwegian parliament (Storting) consists of one chamber whose members are elected every four years.

In Norway there are over 130 banks. The financial sector and its members are supervised by Financial Supervisory Authority of Norway (Finanstilsynet). The biggest bank is DNB which has a 30% market share. Other big entities in the banking sector include Nordea Bank Norge, Handelsbanken Norge and Sparebank. Norway is a member of SEPA.