Company formation in Norway

Before deciding to set up a new company in Norway, read the information below to understand the characteristics of a Limited Liability Company (LLC) / Aksjeselskap (AS):

Shareholders: at least one shareholder (do not have to be a Norwegian citizen/resident).

Director: at least two directors (one of them has to be a resident of Norway or resident in one of the member states of the EEA).

Company Secretary: not required.

Minimum Share Capital: NOK 30,000 (~€2,600).

Legal Address: a company will need at least a Norwegian business address.

Liability: the shareholders' liability is limited to the amount they have invested in the company.

Accounting: the AS is required to maintain proper accounting records and prepare annual financial statements.

The basic CIT rate of general income is 22%.

Certain companies within the financial sector are assessed at a CIT rate of 25%

The effective PIT rate is determined by combining the PIT flat rate of 22% with the progressive tax:

• income up to NOK 180 800 - 0%;
• income between NOK 208,051 – NOK 292,850 - 1.7%;
• income between NOK NOK 292,851 – NOK 670,000 - 4.0%;
• income between NOK 670,001 – NOK 937,900 - 13.6%;
• income over NOK 937,901 – NOK 1,350,000 - 16.6%;
• income from and including NOK 1,350,001 - 17.6%.

The standard VAT rate is 25% which is applicable to most goods and services not covered by reduced rates.

Reduced VAT rates:

• the 15% applies to foodstuffs, beverages, food supplements, and non-prescription medicines;
• the 12% applies to certain cultural and sporting events;
• the 0% applies to books, e-books, and newspapers.

Double taxation avoidance agreements in Norway: Albania, Argentina, Azerbaijan, Australia, Austria, Bangladesh, Belgium, Benin, Bonaire, Bosnia Herzegovina, Brazil, Bulgaria, Canada, Chile, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Faroe Islands, Finland, France, Gambia, Georgia, Germany, Ghana, Greece, Greenland, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Ivory Coast, Jamaica, Japan, Kazakhstan, Kenya, Latvia, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Mexico, Morocco, Nepal, Netherlands, New Zealand, Nordic countries, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, Saba, Senegal, Serbia, Singapore, Slovak Republic, Slovenia, South Africa, South Korea, Spain, Sri Lanka, St. Eustatius, St. Maarten, Sweden, Switzerland, Tanzania, Thailand, Tunisia, Turkey, Uganda, Ukraine, United Kingdom, USA, Venezuela, Vietnam, Zambia, Zimbabwe.