Eternity Law International Ready-made company in Norway

Ready-made company in Norway

April 6, 2020

What is included:

  • Ready-made company in Norway,
  • Account at a local bank,
  • Legal address

Cost: on request.

National Currency: Norwegian Krone (NOK).

Limited liability companies registered in Norway are considered to be residents of Norway. The same are considered companies with existing management and management located within the country.

Norwegian residents are taxed on worldwide income. Non-residents are taxed only on the Norwegian source of income. Branches are taxed in the same way as limited liability companies, but only on income from Norwegian sources.

Corporate income tax is levied on the profits of the company, which consists of business / trade income, passive income and capital gains (subject to broad exemption from capital gains on shares). Ordinary business expenses can be deducted in calculating taxable income.

The standard corporate income tax rate for enterprises is 22%. Enterprises engaged in financial activities are usually subject to corporate tax at a rate of 25%.

VAT is applied at every stage of the production and distribution of most goods and services, including royalties, advertising and hotel services.

The standard rate for value added tax is 25%; a lower rate of 15% applies to food and drinks, and a rate of 12% applies to passenger transport, hospitality, museums and cinemas, amusement parks, etc. Some activities have a zero rate or are exempt from VAT.

Companies with an annual turnover of more than NOK 50,000 must register as a VAT payer.

In the country, the mandatory submission of annual reports only in electronic form. Taxes are paid according to the advance payment system, which is made twice a year.

Tax authorities estimate the amount of the first two payments based on previous year’s revenue. The final payment is based on a tax return, which companies must file electronically by May 31.

Persons who live and work in Norway are mandatory participants in the National Insurance System. This system is funded by contributions from its participants: individuals, employers and the Norwegian state.

Parliament sets contribution rates annually. The employee contribution is 8.2% of the gross income earned from work. The employer’s contribution is differentiated by region and ranges from 0% to 14.1%.

The contribution for other types of personal income (for example, pensions) is 5.1%.

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