23.08.2023 line Uncategorized

Norway

Foreign companies must register with the Norwegian Register of Business Enterprises (Brønnøysundregistrene) before commencing operations.

1.Market overview
2.Entering the marke
3.Costs to the employer
4.Pay and taxes
5.Payroll timeline
6.Leave Policies
7.Termination Policy and severance
8.Time off during the year
9.Onboarding of employees

Market overview:

Currency Corporate TaxVATWorkforce Size
NOK22%25%2.9 million

Entering the market:

Business Registration: Foreign companies must register with the Norwegian Register of Business Enterprises (Brønnøysundregistrene) before commencing operations. This registration provides a unique identification number for the company.

Representative Requirement: Foreign firms are required to appoint a representative who is a resident of Norway. The representative serves as the company’s contact person and is responsible for receiving official documents on behalf of the company.

Tax Registration: Foreign companies must register for tax purposes with the Norwegian Tax Administration (Skatteetaten) and obtain a Norwegian Tax Identification Number (TIN) for the company. This is necessary for tax reporting and compliance. 

VAT Registration: If the foreign company’s turnover in Norway exceeds the VAT registration threshold (currently NOK 50,000), they must register for Value Added Tax (VAT) with the Norwegian Tax Administration.

Licensing and Permits: Depending on the nature of the business activities, foreign firms may need specific licenses or permits to operate legally in Norway. This applies to regulated industries such as finance, healthcare, and transportation.

GDPR Compliance: If the foreign firm processes personal data of EU/EEA residents, they must comply with the General Data Protection Regulation (GDPR) and appoint a Data Protection Officer (DPO) in some cases.

Accounting and Reporting: Foreign companies are required to maintain proper accounting records in accordance with Norwegian accounting standards and submit annual financial statements to the Norwegian Register of Business Enterprises before the last day of May, or else will be penalized. Often requires hiring a Norwegian accountant.

Intellectual Property Protection: Foreign firms should ensure the protection of their intellectual property rights in Norway through trademarks, patents, or copyrights if applicable.

Environmental Regulations: Depending on the business activities, foreign companies may need to comply with environmental regulations and obtain relevant permits for certain operations.

Costs to the employer:

As a percentage of the employee’s salary:

Cost TypeRate
Pension plan / fund (monthly)4.0%
Social Security (monthly)14.1%
Vacation Allowance (annually)10.2%-12%
Vacation Bonus Employer Social Security (ER SS) (annually)1.7%






Pay and taxes:

Minimum wage: there’s no minimum wage overall, but rather minimum wages specific to certain industries. 

Standard working hours are: 7.5/day or 37.5 / week.

Overtime Pay: Overtime pay is obligatory up to 10 hours of overtime work per week or 25 per month. Employees are to be paid 140% of their salary if working on weekends and 200% of their salary if they work both: nightshifts and weekends. 

Bonuses: The vacation allowance constitutes 10.2% (12% for workers over 60) of the employee’s gross salary from the previous year and is paid out not later than one week before the employee begins his holiday period.

Payroll timeline:

Schedule Date
Payroll CycleMonthly
Payroll Cut off date20th of the month
Invoice issuance date26th of the month
Payment dateLast date of the month

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