Entering the Norwegian market comes with more than just business opportunities—it also means dealing with a demanding set of rules and obligations. From taxation, VAT, and accounting to employment law, immigration rules, and industry-specific regulations, the list of compliance requirements is long. Navigating this landscape can be complex and time-consuming, and even small mistakes may prove costly.
That’s why many foreign companies turn to professional legal support when establishing themselves in Norway—whether for short-term projects or long-term growth. In this blog, we’ll explain why having the right guidance can make all the difference.
Winning a contract is just the beginning
Foreign companies often enter Norway to execute a specific project. Once a contract is secured, understanding your tax and VAT position is one of the first and most important steps. High-quality advice at this stage is crucial for establishing a solid compliance foundation.
GUIDE: KEY STEPS FOR ESTABLISH A BUSINESS IN NORWAY
Download our comprehensive guide for foreign companies doing business in Norway.
VAT obligations when delivering genuine subcontracts
Take, for example, a company delivering technical equipment to Norway over 15 months, where the contract also covers equipment installation. In such cases, the contract is typically considered a “genuine subcontract,” which triggers VAT registration requirements and may obligate the company to charge VAT on the full contract amount.
Without expert VAT guidance at the onboarding stage, costly mistakes are common.
Also read: 7 FAQs about VAT for foreign companies in Norway
Permanent establishments and tax risks
Beyond VAT, a “genuine subcontract” may also create a permanent establishment in Norway. This brings corporate tax obligations, annual accounting requirements, and consequences for employee taxation. These issues directly influence payroll setup, which must comply with the Norwegian Working Environment Act. The Act covers dismissal protection, minimum salary requirements, and limits on working hours, all of which are strictly enforced.
Also read: 9 things to know for a foreign company hiring a Norwegian employee
Workplace inspections and compliance expectations
Norway takes compliance seriously, and workplace inspections are a routine part of doing business. Authorities such as the Tax Administration, Labour Inspection Authority, and the Police often conduct joint inspections, especially in high-risk industries like construction.
They typically focus on HSE standards and employee conditions, including employment contracts, pay levels, and working hours. With thorough documentation and coordination by a single advisor, such inspections can be straightforward. Without it, they risk damaging the company’s reputation and jeopardizing future business opportunities.
Norwegian clients are particularly cautious about being associated with labor market violations, as even minor breaches can attract significant media attention.
An experienced advisor ensures that payroll is done correctly and that it complies with immigration law, HSE regulations, and Norwegian labor law—including dismissal protection, minimum salary requirements, and working hours restrictions under the employee-friendly Working Environment Act.
Also read: Mandatory workplace regulations in Norway—are yours in place?
From projects to permanent presence in Norway
Many companies that succeed in Norway eventually go beyond their initial project. They expand operations, engage subcontractors and suppliers, and establish a permanent presence.
Whether entering partnerships, acquiring property, hiring local employees, or setting up a Norwegian limited liability company (AS), collaborating with an experienced cross-border advisor adds significant value—helping businesses turn opportunities into long-term success.
Doing business in Norway—seek professional help
Norwegian compliance is complex and spans a wide range of legal obligations. Our experience shows that it is both time- and cost-efficient to partner with a firm that offers complete expertise across tax, VAT, HR and labor law, global mobility and payroll, corporate law, and accounting.
This integrated approach ensures efficiency, reduces administrative burden, saves time and money, and supports sustainable commercial growth.
Magnus Legal is a business law firm specializing in assisting foreign companies entering the Norwegian market. Our six core areas—tax, VAT and customs, HR and labor law, global mobility and payroll, corporate law, and accountancy—represent the essential building blocks for successful business operations in Norway.
To learn more about how to do business in Norway, download our comprehensive guide or get in touch to discuss how we can support your business.
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