Doing business in Norway—a brief overview of company obligations

Foreign multinational companies doing business in Norway must be aware of the multitude of obligations they must comply with, and that the basic of Norwegian compliance obligations are rather burdensome. Failure to comply may commonly results in severe sanctions.

As always, it is better to do the right things from the beginning than to tidy up afterwards. In this article we'll give you a brief overview of the required actions applicable in 2026 for foreign companies doing business in Norway. This encompasses, among other factors, information on registration, reporting and tax liabilities in Norway. You may also download our guide on the subject. 

What type of legal entity should you choose in Norway?

Each enterprise must consider which form of entity best suits its particular purpose, taking into account commercial considerations, tax and VAT issues, compliance and administrative costs, limitation of liability, etc.

The most common alternatives are:

• Branch, called “NUF” in Norway (may create a so-called permanent establishment (PE) for tax purposes)
• Limited Liability Company (AS or ASA)
• Partnership and joint venture (ANS, DA, KS)
• Sole proprietorship

Also read: How to choose the right corporate structure in Norway

How do you registrer a business in Norway?

Everyone that conducts business activities within Norway must register with the Centralized Coordination Registry at Brønnøysund. The Registry provides the enterprise with a Norwegian ID number, called “organization number” or “org.no.”. The org.no. is required when entering into contracts, invoicing, reporting, communicating with public authorities, etc.

Note that the filing of various forms and communication with Norwegian government agencies is normally done via the internet portal www.altinn.no. In order for the enterprise to have access to Altinn, an individual with a registered role of the enterprise must have a Norwegian ID-number and Altinn access codes. To facilitate easy access to Altinn, the lawyers of Aider Legal offer to assist by being registered as a contact person or business manager in the initial phase.

Read more: Register a company in Norway

What about corporate tax registration?

There is no specific corporate tax registration when doing business in Norway, but the tax office has access to the Registries at Brønnøysund. Thus, the tax office expects that all entities will comply with all the various reporting obligations and file an annual corporate tax return.

Important to note is that any principal engaging a foreign sub-contractor to conduct work in Norway is obliged to report the contract to the tax office at the so-called Assignment and Employee Registry. This is done electronically or via a form called “RF-1199”. Further, the foreign contractor must report all employees working in Norway to the Registry or via  the form “RF-1198”.

All employees must obtain a Norwegian personal ID number (called “D-number”) and a tax deduction card. In order to obtain these, the individual must physically meet at a particular tax office for an ID-control within 14 days after commencing work in Norway.

The employee must bring:

• a valid passport or national ID card

• an application for tax deduction card (form RF-1209)

• the employment contract or written confirmation of work assignments in Norway
  
  

What about VAT when doing business in Norway?

The Norwegian default VAT rate is 25%, although reduced to 15% on food and 12% on, e.g., public transportation and hotel accommodation.

Enterprises selling goods or services exceeding NOK 50,000 over a twelve-month period are obliged to register for VAT in Norway and add VAT on the invoices. On the other hand, a VAT-registered entity is entitled to a refund of the input VAT on its own purchases of goods and services used in the business. The VAT is reported on VAT returns, which normally must be filed every other month.

A foreign enterprise that is VAT liable without any fixed place of business in Norway must register via a Norwegian based VAT representative. The VAT representative is obliged to ensure that the VAT handling is correct and is responsible for filing the VAT return. Enterprises from most EU/EEA countries are exempted from the obligation to appoint a VAT representative.

Also read: Should your business register for VAT in Norway?

What do you need to consider regarding import of goods and services to Norway?

When importing goods and services, import-VAT and customs duties might incur, and the actual customs transaction is based on the principle of declaration. Bear in mind that Norway is not a member of the EU and thus regarded as a third country in relation to the transaction of goods and services cross-border from the EU. It is possible to obtain custom credit upon application.

Also read: Import to Norway – VAT and customs

What is the corporate tax rate in Norway?

In principle, all foreign enterprises doing business in Norway are subject to Norwegian corporate tax at a rate of 22%.

Additional corporate tax is levied on certain industries such as on financial services, oil and gas exploitation companies, hydroelectric power plants, wind farm electricity plants and fish farming industries.  

However, Norway has tax treaties with about 90 countries, which may provide exemption from Norwegian corporate tax liability for the foreign enterprise. Thus, an assessment of tax liability must be made specifically for each foreign enterprise.

Note that, unless a specific exemption has been granted, the foreign enterprise is obliged to file a corporate tax return even though it may be tax exempted according to a tax treaty. In such case the exemption from corporate tax liability under the tax treaty should be explained in an enclosure to the tax return.

Also read: Corporate tax in Norway - the basics for non-Norwegian enterprises 

What about work and resident permits for your employees?

An employee from a country outside the EU/EEA who is seconded to work in Norway must have a residence permit that also covers the right to work. There are various categories for such application and employees of multinationals may commonly be regarded as “skilled workers.” The application must have been accepted prior to the commencement of the work in Norway.

These restrictions are in general not applicable for EEA citizens. However also these employees must also register with the police.

Also read: Understanding compulsory residence permits in Norway

How are employees taxed in Norway?

The employer must report salary, fringe benefits, tax withholding, and the number of days in Norway for each employee monthly. These reports ("A-melding") are submitted electronically.

Individuals working in Norway are generally subject to Norwegian tax from day one, though a tax exemption may be granted under a tax treaty between Norway and the individual's home country. Treaty-based exemption does not relieve the individual from the obligation to file an individual tax return.

A simplified PAYE (Pay As You Earn) scheme may apply for certain employees not regarded as tax resident in Norway, with Norwegian income not exceeding NOK 725 050 (2026). Note that certain fringe benefits — such as free accommodation and home trips — that may be tax exempt under ordinary rules are taxable under the PAYE system. If PAYE applies, the employee shall not file an individual tax return.

Employers with employees working in Norway may also be subject to employer social security contribution of up to 14.1%, unless an exemption is granted. Employers must further offer employees membership in a private occupational pension plan and take out mandatory occupational injury insurance.

Also ready: All you need to know about the Norwegian tax report system – A-melding

What employee rights apply in Norway?

Employees working in Norway are covered by the Norwegian working environment regulations, including provisions on minimum salary in certain industries.

The employees are protected against unjust termination, and the employer must comply with strict formal procedures including notice period in case the employment contract is to be terminated.

Also read: Employee rights in Norway

What are the accounting and auditing requirements?

In general, all entities doing business in Norway must keep books of accounts based on the Norwegian general accepted accounting principles (“NGAAP”). The annual financial accounts must be filed via an approved software with the Norwegian Registry of Accounts.

Further, note that an independent auditor must audit the accounts when certain thresholds are met.

Also read: Why fullfilling accounting obligations is essential for success

What happens if you don't comply with Norwegian rules and obligations?

From a pure business perspective, the experience is that any committed business partner or principal will require that foreign contractors or business partners strictly comply with Norwegian laws and regulations. Further, for non-compliance, the authorities will levy sanctions including heavy penalty taxes and interest charges, late filing penalty charges, deemed discretionary assessments, etc.

Also read: Business in Norway - Avoid sanctions and penalty charges

Please note: The information provided in this article is valid as of January 1, 2026. Tax legislation undergoes rapid changes, and we recommend that you should contact your lawyer with Aider Legal to obtain tailored advice for your needs.