Before you can hire employees or set up your payroll, you’ll need to set up a Norway subsidiary or find a subsidiary alternative. Every country differs on the time and resources required for each step, but opening your business and hiring employees can take up to a few months when setting up a subsidiary on your own.
Instead, Globalization Partners offers a better, comprehensive solution with our Employer of Record model. We’ll help you hire employees and run payroll without establishing a subsidiary first. We’ll also take on all matters of compliance so that you can stay focused on your business goals.
How to Set Up a Norway Subsidiary
Choosing to set up a Norway subsidiary is not a decision you should take lightly. Therefore, you’ll need to consider a variety of factors before you decide to expand to Norway, such as the business environment, location, and language. Your type of business and existing business relationships can play a role in whether you want to open a subsidiary in Norway and where you should locate your headquarters.
Different regions and cities often have their own rules, costs, and microcultures. If you do not know the Norway area well, it’s best to work with a consulting agency or other professionals who can help you figure out the best location for your business.
Around 95% of the population speak Norwegian while 90% speak English. If you do not know Norwegian, you should hire a translator or employees who are fluent in the language and who can talk to clients.
The most common Norway subsidiary structure is a private limited liability company known as an Aksjeselskap (AS). The Norway subsidiary setup process for an AS is as follows:
- Deposit your startup capital at the bank
- Register with the Register of Business Enterprises
- File for VAT registration
- Arrange mandatory occupational pension plans for employees in a pension agency
- Enroll in mandatory workers’ injury insurance
Norway Subsidiary Laws
Over the last few years, Norway has made its subsidiary laws less complex. In 2013, the country reduced the minimum capital requirement for private joint stock companies. In 2015, they eliminated the need for limited liability companies to have their balance sheet examined by an external auditor if they pay the capital in cash. Norway subsidiary laws then took a big leap in 2016 with the introduction of online government and bank account registration services.
If you decide to set up a limited liability company, you’ll need a minimum of 30,000 NOK in share capital. You’ll also need a minimum of two directors, one of whom needs to be a Norwegian or European citizen.
Benefits of Setting Up a Norway Subsidiary
The most significant benefit of a limited liability subsidiary is its relationship to the parent company. A subsidiary can operate independently, saving the parent company from any substantial losses or costly litigation. This independent nature also allows you to choose what kind of workplace culture you want to promote in your subsidiary, as it can be different than the parent company and tailored to Norway’s laws and customs.
You can enjoy these same benefits and more with Globalization Partners. As an alternative to establishing a Norway subsidiary, we will hire employees for your team and get them set up on our payroll in a few days, so you can avoid the stress of setting up a Norway subsidiary. We know Norway’s subsidiary laws front to back and will handle all matters of compliance.
Other Important Considerations
If you are ready to expand into Norway, you should prepare for everything you need to set up a subsidiary. To start, you must set aside a significant amount of money and time. You will need to invest a certain amount of capital and possibly pay fees throughout the process. Plus, you should consider the expenses of traveling to Norway and back.
If you don’t choose an alternative to establishing a Norway subsidiary, you will have to devote time to learning the country’s subsidiary laws or hire someone who is an expert in multiple fields. Instead, Globalization Partners offers a better option.
Let Globalization Partners Help With Your Expansion
The best alternative to establishing a Norway subsidiary is working with Globalization Partners. We’ll get you started faster and take the stress out of worrying about compliance. Contact us today to learn more.