"When I decided to launch my own consulting business from Oslo, I didn't know where to start. After 7 years here and setting up two different structures, I'm sharing everything I learned to spare you the pitfalls and save you precious time."
— Ingrid, expat in Oslo for 7 years
Why start a business in Norway?
Norway is regularly ranked among the best countries in the world for starting a business. The regulatory framework is transparent, the bureaucracy relatively light compared with many other countries, and the economic environment is stable thanks to oil wealth and a diversified economy.
Here are the country's main strengths for entrepreneurs:
Administrative simplicity
Registering a business is done entirely online in a few days. Norway is ranked in the world's top 10 for ease of starting a business.
A stable, prosperous economy
GDP per capita among the highest in the world, low unemployment and high purchasing power among the local population.
Trust and transparency
Norwegian business culture is based on mutual trust (tillit). Contracts are honoured and payments are generally on time.
Advanced digital ecosystem
A highly connected population with strong adoption of digital technology and innovation. An ideal market for digital services and tech startups.
new businesses created every year in Norway, a growing share of them by foreign residents
What surprised me most when I set up my business here was the speed. Back in France, it took me weeks to get my self-employed status. In Norway, my Enkeltpersonforetak was registered in 3 days. The real difficulty is understanding the tax system, not the administration.
— IngridThe main legal structures
In Norway, two legal structures account for the vast majority of businesses started by expats. Each suits a different profile and level of ambition.
Enkeltpersonforetak (ENK) - Sole proprietorship
The Enkeltpersonforetak is the Norwegian equivalent of a sole proprietorship (similar to a UK sole trader or a US sole proprietorship). It is the simplest and quickest structure to set up. It is perfectly suited to freelancers, consultants, tradespeople and small service businesses.
Main features:
- No minimum capital required
- Free registration, entirely online
- No distinction between personal and business assets (unlimited liability)
- Taxed as personal income (no corporation tax)
- Simplified bookkeeping if turnover is below 50,000 NOK
- Option to charge VAT from 50,000 NOK of annual turnover
As an ENK, you are personally liable for all the business's debts. If the business makes losses, they can be deducted from your other taxable income. This is a significant tax advantage in the first year.
Aksjeselskap (AS) - Limited company
The Aksjeselskap (AS) is the equivalent of a limited company (similar to a UK private limited company (Ltd) or a US corporation/LLC). It is a legal entity separate from its founder, with liability limited to the capital invested. This structure is recommended for more ambitious projects, activities with financial risk, or when you plan to have partners or investors.
Main features:
- Minimum capital of 30,000 NOK (about $3,180 / £2,380)
- Liability limited to share capital
- Legal entity separate from the director
- Corporation tax of 22% on profits
- Obligation to keep full accounts and file annual accounts
- Option to pay yourself a salary and/or dividends
- An auditor (revisor) is required above certain thresholds
ENK vs AS comparison
| Criterion | ENK (Sole proprietorship) | AS (Company) |
|---|---|---|
| Minimum capital | 0 NOK | 30,000 NOK |
| Registration cost | Free | 5,570 NOK |
| Liability | Unlimited (personal) | Limited to capital |
| Taxation | Income tax (up to 47.4%) | Corporation tax 22% + tax on dividends |
| Accounting | Simplified | Full accounts mandatory |
| Setup time | 1-3 days | 1-2 weeks |
| Ideal for | Freelancer, consultant, small business | Startup, risky activity, partners |
I started with an ENK to test my consulting business. When my turnover passed 800,000 NOK and I started working with large Norwegian clients, I switched to an AS. Major clients often prefer to work with an AS; it inspires more confidence. My advice: start simple with an ENK, and switch to an AS when the business justifies it.
— IngridOther legal forms
There are other, less common structures for expats:
- NUF (Norskregistrert Utenlandsk Foretak): a branch of a foreign company registered in Norway. Useful if you already have a business back home.
- ANS / DA (Ansvarlig Selskap / Delt Ansvar): general partnerships, with joint or shared liability between partners.
- Samvirkeforetak (SA): a cooperative, suited to collective projects.
Registering with the Brønnøysundregistrene
The Brønnøysundregistrene is the central register of Norwegian businesses, the equivalent of a national companies register in your home country. All businesses must be registered there to operate legally in Norway.
Registration is done through the online portal Altinn, the Norwegian administration's digital platform. You will need your Fødselsnummer and BankID or MinID access to log in.
Step-by-step registration
Check the preconditions
Before any registration, make sure you have obtained your Fødselsnummer and have an address registered in Norway. You must also have access to Altinn via BankID, MinID or Commfides.
Prerequisites: Fødselsnummer + BankID/MinID access + Norwegian address
Choose and check the company name
The name must be unique and not liable to be confused with an existing company. Check availability on brreg.no. For an ENK, the name must contain your surname. For an AS, it must contain the suffix "AS".
Fill in the registration form on Altinn
Log in to altinn.no and select the form that matches your structure. For an ENK, use the "Samordnet registermelding" form (Coordinated Register Notification). Enter the activity (NACE code), the registered office address and your contact details.
Deposit the share capital
For an AS, you must deposit the minimum capital of 30,000 NOK in a dedicated bank account. An auditor or accountant must confirm the deposit. Attach the deposit certificate to your application.
Submit the application and receive the organisation number
After submission, the Brønnøysundregistrene processes your application. For an ENK, processing takes 1 to 3 working days on average. For an AS, allow 1 to 2 weeks. You will receive your organisasjonsnummer (9-digit organisation number) by post and via Altinn.
Set up your tax obligations
Once registered, sign up for the MVA (VAT) register if necessary, open a business bank account and set up your access to online tax filing on skatteetaten.no.
- Fødselsnummer obtained and registered
- Altinn access set up (BankID or MinID)
- Norwegian address registered with the Folkeregisteret
- Company name checked on brreg.no
- NACE code identified for your activity
- Business bank account opened (or in progress)
- Share capital deposited (for an AS: 30,000 NOK minimum)
- Articles of association drafted (for an AS: vedtekter are compulsory)
The organisation number (Organisasjonsnummer)
The organisasjonsnummer is a unique 9-digit identifier assigned to every business registered in Norway. It is the equivalent of a company registration number back home. This number is public and anyone can look it up on brreg.no.
This number is essential for:
- Issuing compliant invoices
- Declaring and paying VAT (MVA)
- Drawing up commercial contracts
- Opening a business bank account
- Accessing the tax authority's online services
- Responding to public tenders
The number is written as XXX XXX XXX (9 digits). On your invoices and official documents, it must be preceded by the prefix "NO" and followed by "MVA" if you are subject to VAT. Example: NO 123 456 789 MVA.
As soon as you receive your organisasjonsnummer, check your profile on brreg.no straight away. The information there is public: address, manager, activity code. Make sure everything is correct, because your customers and potential partners will check this information before working with you. This is very common in Norway.
— IngridAccounting and tax obligations
The Norwegian tax system is demanding but well organised. Obligations vary depending on your legal form and your turnover. Here is what you need to know.
For the Enkeltpersonforetak (ENK)
As a sole trader, your business income is included in your personal tax return. The tax year is the calendar year (1 January - 31 December).
- Simplified bookkeeping if annual turnover is below 50,000 NOK and you have no more than 20 balance sheet items
- Annual tax return via the "Næringsoppgave" form on Altinn (deadline: 31 May)
- Advance tax payments (forskuddsskatt) 4 times a year: 15 March, 15 June, 15 September and 15 December
- Social security contributions (trygdeavgift) of 11.2% on self-employment income
Do not underestimate advance tax payments! In many countries tax is deducted at source from salaries, but as a self-employed person in Norway you have to calculate and pay your advance payments yourself. If you don't, late-payment interest applies. I learned that lesson the hard way in my first year.
For the Aksjeselskap (AS)
An AS has stricter accounting obligations:
- Double-entry bookkeeping is compulsory
- Annual accounts (årsregnskap) to be filed with the Brønnøysundregistrene before 31 July
- Company tax return (skattemelding for aksjeselskap) before 31 May
- Corporation tax of 22% on net profits
- Compulsory auditor (autorisert revisor) if turnover exceeds 7 million NOK, assets exceed 27 million NOK or the company employs more than 10 people on average over the year
- VAT returns every two months or annually depending on turnover
Employer contributions (Arbeidsgiveravgift)
If you employ staff, you must pay the employer contribution, which ranges from 0% to 14.1% depending on the geographical zone of your business. Oslo and the big cities are in the highest zone (14.1%). Rural areas of northern Norway benefit from reduced or even zero rates to encourage economic activity.
Invest in good accounting software from the start. In Norway, Fiken, Tripletex and Visma eAccounting are the most popular. Fiken is particularly suited to small businesses and ENKs: the interface is intuitive and returns are pre-filled. Expect to pay around 299-499 NOK per month. It is worth every krone.
— IngridVAT in Norway (Merverdiavgift - MVA)
Norwegian VAT, called Merverdiavgift (MVA), works on the same principle as VAT elsewhere in Europe but with different rates. Understanding and managing MVA correctly is essential for any entrepreneur in Norway.
Current VAT rates
| Rate | Percentage | Applies to |
|---|---|---|
| Standard rate | 25% | Most goods and services |
| Reduced rate | 15% | Food and non-alcoholic drinks |
| Super-reduced rate | 12% | Passenger transport, accommodation, cinema, sporting events, museums |
| Exempt | 0% | Healthcare services, education, financial services, exports |
Compulsory MVA registration
Registration in the MVA register is compulsory as soon as your taxable turnover reaches 50,000 NOK over a 12-month period. Registration is done via Altinn at the same time as registering the business, or later.
Once registered, you must:
- Charge MVA to your customers on every invoice
- Submit MVA returns (MVA-melding) every two months (6 times a year), or annually if your turnover is below 1 million NOK
- Pay over the difference between the MVA collected and the deductible MVA (on your business purchases)
The periods and deadlines are: Jan-Feb (10 April), Mar-Apr (10 June), May-Jun (31 August), Jul-Aug (10 October), Sep-Oct (10 December), Nov-Dec (10 February). Missing the deadlines results in an automatic fine.
Important tip: if you are starting your business and expect to quickly exceed 50,000 NOK, register for MVA right from the start. That way you can recover the VAT on your start-up purchases (computer, office furniture, software). I was able to recover more than 15,000 NOK of VAT on my initial investments.
— IngridAvailable aid and grants
Norway has a generous support ecosystem for entrepreneurs. Several public and semi-public bodies offer funding, training and support.
Innovasjon Norge (Innovation Norway)
Innovasjon Norge is the main government agency for business support. It offers a full range of services for entrepreneurs, including expats:
- Etablerertilskudd (start-up grant): up to 150,000 NOK for new businesses with an innovative project. Non-repayable.
- Mentortjeneste (mentoring service): free guidance from an experienced entrepreneur for 12 months.
- Etablererkurs (courses for entrepreneurs): free or low-cost courses on business management, accounting and marketing.
- Preferential-rate loans: for projects with strong innovation or export potential.
- Export advice: support for companies wishing to export from Norway.
SkatteFUNN
The SkatteFUNN scheme is a tax credit for research and development (R&D) activities. Companies can obtain a tax credit of 19% of eligible R&D expenditure, up to a limit of 25 million NOK per year. It is a very powerful lever for tech start-ups and innovative companies.
Other available support
NAV - Unemployment benefit under conditions
If you are unemployed and want to start your own business, NAV can in some cases keep paying your unemployment benefit during the development phase of your project (up to 12 months).
Kommunale tilskudd
Some municipalities offer local grants to new businesses, particularly in rural areas of the north and west. Ask the Næringsetaten (business development office) of your municipality.
SIVA - Incubators
SIVA runs a national network of incubators and technology parks. Admission to a SIVA incubator gives access to mentoring, shared offices and a network of contacts.
Forskningsrådet
The Research Council of Norway funds innovation and R&D projects through programmes such as IPN (Innovation Projects for the Industrial Sector) and grants for start-ups.
Don't overlook Innovasjon Norge's Etablererkurs. These free courses helped me understand the Norwegian tax system, structure my business plan and meet other entrepreneurs. They are also an excellent way to practise your Norwegian in a professional setting. The courses are often offered in English in the big cities.
— IngridThe start-up ecosystem in Norway
The Norwegian entrepreneurial ecosystem is booming, driven by a political will to diversify the economy beyond oil. Each major city has developed its own identity when it comes to innovation.
Oslo - The tech hub
Oslo concentrates most of the country's tech start-ups and the largest number of investors. The Grunderiet district and coworking spaces such as Mesh, Tøyen Startup Village and StartupLab are focal points of the ecosystem. Oslo also hosts the annual Oslo Innovation Week, an unmissable networking event.
Bergen - Energy and maritime
Bergen is a centre of excellence for start-ups linked to energy, maritime industries and aquaculture. The Marineholmen incubator and the GCE Ocean Technology cluster attract entrepreneurs from all over the world in these sectors.
Trondheim - Research and deep tech
Thanks to NTNU university and the SINTEF research centre, Trondheim is the cradle of many deep tech start-ups. The city excels in artificial intelligence, robotics and clean technologies.
Stavanger - Energy in transition
Historically the oil capital, Stavanger is making a transition towards renewable energy and green technologies. Entrepreneurs in the energy transition sector will find a mature ecosystem and experienced industrial partners there.
Norway has more than 30 active incubators, more than 200 coworking spaces, and venture capital investment has reached record levels in recent years. The country regularly ranks in the European top 10 for innovation.
Networking is absolutely essential in Norway. Norwegians rely a lot on recommendations and word of mouth. Join the meetup groups in your sector, take part in "Gründerkveld" events (entrepreneur evenings) and don't hesitate to contact people directly on LinkedIn. Norwegians are reserved at first, but very open and helpful in a professional context.
— IngridSet-up costs and forecast budget
The cost of setting up a business in Norway is relatively low compared with other European countries. Here is a detailed summary of the costs to expect depending on the structure you choose.
Set-up costs
| Expense item | ENK | AS |
|---|---|---|
| Registering with the Brønnøysundregistrene | Free | 5,570 NOK |
| Minimum share capital | 0 NOK | 30,000 NOK |
| Drafting the articles of association (vedtekter) | Not required | 0-10,000 NOK |
| Accountant / Chartered accountant (annual) | 5,000-15,000 NOK | 20,000-60,000 NOK |
| Accounting software (annual) | 3,600-6,000 NOK | 6,000-12,000 NOK |
| Auditor | Not required | 15,000-40,000 NOK * |
| Professional insurance (annual) | 3,000-10,000 NOK | 5,000-20,000 NOK |
| Total first year (estimate) | 12,000-31,000 NOK | 82,000-178,000 NOK |
* An auditor is only compulsory for an AS above certain thresholds (turnover > 7M NOK, assets > 27M NOK or > 10 employees). Small AS companies can apply for an exemption.
The cost of registering an Enkeltpersonforetak with the Brønnøysundregistrene. Norway is one of the few countries where setting up a sole proprietorship is completely free.
In my first year as an ENK, my actual running costs were limited to around 15,000 NOK (accounting software + insurance). Most of my investment went into computer equipment and marketing. Don't underestimate the cost of a coworking space either if you don't want to work from home: allow 2,500-5,000 NOK per month in Oslo for a fixed desk.
— IngridFrequently asked questions
Yes, provided you have a Fødselsnummer (or D-nummer in some cases) and an address registered in Norway. EU/EEA citizens do not need an additional work permit. For non-EU nationals, a residence permit allowing self-employment is required.
No, the registration forms are available in English on Altinn. Most Norwegians speak English fluently, and many customers and partners are happy to work in English. However, a command of Norwegian is a considerable asset for networking, for understanding administrative and tax documents, and for access to certain local markets.
Yes, it is perfectly possible and very common in Norway. Many employees have a side activity as an ENK. Your ENK income will be added to your salary income when calculating tax. However, check that your employment contract does not include a non-compete or exclusivity clause that could limit your parallel activity.
The transition is possible but requires creating a new AS entity and then transferring the activity. In practice, you must: create the AS with the required capital, transfer customer contracts and assets, and close the ENK. It is strongly recommended to get an accountant to help you optimise this transition from a tax point of view. The good news: you generally keep your customers and your reputation.
For an ENK with no employees, no insurance is legally compulsory, but it is strongly recommended to take out a yrkesskadeforsikring (occupational injury insurance) and professional liability insurance. As soon as you employ staff, occupational injury insurance becomes compulsory. Some sectors (construction, transport) have additional insurance requirements.
No, you can use your home address as your business address, which is very common for ENKs and small AS companies. If you prefer not to publish your home address (which will be visible on brreg.no), you can rent a business postal address (company mailbox) for about 200-500 NOK per month.
Dividends paid by an AS to an individual shareholder are subject to tax of 37.84% (after applying the multiplier of 1.72 to the gross dividend amount, then taxing at the 22% rate). Combining the 22% corporation tax and the dividend tax, the total tax burden comes to about 51.5%. That is why many entrepreneurs optimise by paying themselves a mix of salary and dividends.
Yes, absolutely. For B2B services (between businesses), you invoice without MVA by applying the reverse charge mechanism. Your customer declares the VAT themselves in their own country. State on your invoices "Reverse charge - Article 44 of Directive 2006/112/EC" and give your customer's intra-EU VAT number.
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