Beruflich Dokumente
Kultur Dokumente
Business
Auditing .................................................................... 21
PREFACE ..................................................................... 4
ILLNESS BENEFITS , OCCUPATIONAL INJURIES , PENSION SCHEME 22
INTRODUCTION ............................................................. 5
Calculation of the basis for illness benefits ................. 22
Business climate in Norway ......................................... 5 Maternity benefits ..................................................... 22
Type of Business ......................................................... 5 Mandatory occupational pension ............................... 22
© Copyright Bedin -2- Written and compiled by the Bedin team (www.bedin.no)
Acknowledgements
The text in this document is produced by Bedin based
on information from a number of different sources. In
some instances, the information has been somewhat
shaped to suit the purpose of the guide. In others,
such as references to legislation and regulations, and
where the information already is available in English,
we have given priority to precision and consequently
chosen to reproduce the contents from the proper
authority. Nevertheless, all mistakes - both factual
and with respect to language - are solely our
responsibility.
© Copyright Bedin
© Copyright Bedin -3- Written and compiled by the Bedin team (www.bedin.no)
Preface
This guide is meant primarily for you This guide is somewhat voluminous.
who are on the brink of starting your Still, we cannot claim that we are able
own business, operating in Norway. to give you the full picture. We do,
Admittedly, all aspects of the however, hope it will serve as a
legislation and the corresponding satisfactory starting point. And we
regulations are not easily accessed, most certainly wish you the best of
particularly since a great part of the luck with your plans as an entrepre-
relevant material is available in neur in Norway.
Norwegian only. We have, however, Remember that if you need further
done our best to use relevant sources, information, the Narvik Business
verify the terminology and explain the Information Services (800 33 840) is
essential implications for the only a toll free phone call away.
© Copyright Bedin -4- Written and compiled by the Bedin team (www.bedin.no)
Introduction
© Copyright Bedin -5- Written and compiled by the Bedin team (www.bedin.no)
Business or Hobby Activities?
Preconditions all necessary tools/operating assets duration will be assessed by the Tax
and furthermore, decides on when Authorities. Single assignments or
For your actions to be regarded as
and how the work is to be carried casual assignments are not enough
business activities, they must
out, then you probably will be to constitute a self-employed
involve transactions of an economic
considered as an employee of the business.
nature. What you do must show the
principal even if you have
potential of producing a profit.
registered a self employed business. If several of the following points
However, not necessarily immedia-
are true, you are most likely
tely; - business resulting in losses
running a business:
over the first few years is still
considered business as long as the By own expenses and risks You have several principals on a
activities may generate a profit in An important condition is that the regular basis, consecutively or at
the future. activities of the business enterprise the same time.
The tax authorities 2 decide on shall be carried out on the execu- You have your own office or
how your activities will be tive's - often the owner's - own workshop.
regarded. They will consider the expenses and risks. You provide the necessary raw
period over which the activities are “By own expense” means that materials yourself.
carried out, as well as the extent of the executive covers the expenses You use your own operating assets
these activities when deciding on related to the work. These can be such as machines, transportation,
the nature, i.e. business or hobby. costs of materials, purchasing costs computers.
Note that these conditions are and running expenses, etc. Your turnover/revenue is generated
not absolute – there are no definite “By Own risks” means that the by delivered goods or services
thresholds that must be exceeded executive has the responsibility for rather than per time unit. However,
for the hobby to be regarded as the results of the assignment. The as a consultant, you may very well
business. However, in one case principal can, for instance, be paid by the hour.
(business) all costs related to the complain if not satisfied with the
The work does not necessarily have
activities are deductible on your tax results.
return, in the other (hobby) they are to be carried out by you. Instead
not. It is therefore very important Financial profit you may use someone employed by
that you engage in a dialogue with you.
The business must be able to gene-
the Tax Office at an early stage to rate a financial profit over some The assignment is limited, both
prevent any surprises later on. period of time. It is not necessary to with respect to time and extent.
have a profit immediately if it is When the assignment is completed,
conceivable that a profit will occur you cannot demand another from
Will your plans lead to real at some later stage. the principal.
business or are you actually a The principal has no professional
wage earner? Activity nor managerial authority over you.
The distinction between one and the The business must carry out some The principal may complain and
other may be hard to detect. form of activity. Passive capital seek compensation if not satisfied
However, if you are going to own dispositions such as stock with the result.
the operating assets, decide the investments and letting of own The principal pays for the
working hours yourself and residence do not constitute a assignment as a whole, not for the
possibly experience losses, then you business enterprise. However, the individual elements such as
are most likely running a business self-employed person does not have materials, management, use of
in the perspective of the tax to be active himself/herself, but machinery etc.
authorities. may instead have employees who
If you, on the other hand, only work carry out the work. The above list is not complete. Note
for a single principal who provides One of the decisive conditions that there is no single point that is
for acceptance by the Tax considered decisive. In fact, you
Authorities is that the business both must expect the tax authorities to
2
The organisation of the tax authorities involves activities of a certain examine your business as a whole
is explained in a later chapter. extent and duration of a certain before deciding whether you are
Regarding the question of business or period of time. Neither term is engaged in business or hobby
hobby, the Tax Office is the proper actually defined. The extent and activities.
authority.
© Copyright Bedin -6- Written and compiled by the Bedin team (www.bedin.no)
Register Your Business
Initial registration Prepare the Coordinated register Organization (NAV) 5 or the Tax
notification 4 Office. These offices may also
Central Coordinating Register for
Legal Entities3 Obtain the form “Coordinated provide the form and help you fill it
register notification”. Use the in.
In order to run a business enterprise
form's part 1 (main form), which
you have to be registered in the
can be downloaded from
Central Coordinating Register for
http://www.brreg.no/ or ordered
Legal Entities (CCRLE). Following
from the Narvik Business Hotline
registration, you will receive a nine-
800 33 840 or Brønnøysund
digit organization number used in
Register Centre by telephone, +47
business documents and in your
75 00 75 00.
information exchange with the
In the process of entering the data,
authorities. Unless you have a valid
it will normally become clear if
organization number, you cannot
your entity must be registered as a
open a bank account on behalf of
business enterprise, if you are an
the enterprise. Furthermore, you
employer and if you are eligible to
cannot engage employees nor
pay VAT on the goods and/or
register in the Value Added Tax
services you sell.
(VAT) Register.
© Copyright Bedin -7- Written and compiled by the Bedin team (www.bedin.no)
registered in one of the associated in the Register of Business identification to authorities and for
registers (see above). Enterprises. coordinating private and public
business registers.
The name of your enterprise Register of Business Identification of the executives of
The name of a company is regulated Enterprises a business enterprise.
by the Business Name Act 6. The The Business Enterprise Registra-
minimum requirement is a name tion Act7 lists a number of different
consisting of at least three Norwe- types of organizations that have to The Central Coordinating
gian letters, numbers, orthographic register. Generally, the registering Register for Legal Entities
signs and possibly the abbreviation in the Register of Business - foreign entities
identifying the type of company. Enterprises is mandatory for all who
For foreign entities, the Central
Thus, ABC AS and 2BIAS DA are conduct business activities and all
Coordinating Register for Legal
legal names. The name cannot be enterprises with limited liability.
Entities and the Register of
identical to names already Regis- The register serves different
Business Enterprises shall comprise
tered in the Register of Business purposes. And an important one is
the following information:
Enterprises. The term “identical” to maintain a correct record of
should be understood quite literally, people that may be held responsible 1. Name, type of organization and
taking into account all letters, for actions in the name of the business address of the foreign
spaces, numbers and signs. company. entity.
However, the letters identifying the In sole proprietorships, there can2. Owner, participants with full
type of company are not included. be no doubt as to who is the respon- liability or fully liable partners or
Consequently, the names KARI AS sible person. Therefore, such enter- the board of directors; their names,
and KARI ANS are considered prises are exempt from the general dates of birth, addresses and the
identical. Note also that the registration duty. However, sole relevant signature authorisations.
assessment of identical enterprise proprietorships either selling goods 3. Share capital if the entity is a
names is independent of purchased for such purposes and/or limited company and how much is
municipality (location of the employing more than five paid up. If the share capital is not
business) and business sector. employees in full-time posts are fully subscribed, only the sub-
required to register. Sole proprie- scribed capital can be stated as
For sole proprietorships (self- torships not required by the act to share capital.
employed) businesses, the rules do so, may register on a voluntary 4. The memorandum of association
differ somewhat. The family name basis. and the articles of association of the
of the owner must be included, e.g. Foreign entities are obliged to main business enterprise.
HANSEN’S BAKERY and CAR register in the Register of Business 5. The state by whose legislation the
REPAIR OLE OLSEN. The family Enterprises if they conduct business entity is bound. Whether the entity
name may be used alone, meaning activities in Norway or on the is registered in a public register of
that HANSEN, MOER and Norwegian continental shelf. business enterprises in its home
ØVREGÅRD may be registered. If country, and if so, the name and
only the family name is used, there Registration in the Register of address of this register and the
is no check for or prohibiting of Business Enterprises ensures the registration number.
identical names. following to a business enterprise:
6. Name and address of any business
Foreign companies registering a The right to operate a business premises or permanent establish-
branch in Norway may use the same enterprise. ment in Norway or on the
name as in the country of origin, Legal protection of the business Norwegian continental shelf.
even if the name consists of less name.
than three letters and/or is identical 7. The type of business activities that
A certificate of registration as will be conducted.
to the name of a municipality, a
identification for lenders, legal 8. The board and general manager if
county or a country. One restriction
registration authorities, and customs elected or employed specifically for
though, the name cannot include
and excise authorities. the activities, and if so, whether
letters or signs that are not
identified as accepted letters/signs A business enterprise
organization number as important
6
In Norwegian called "Foretaksnavne-
7
loven". In Norwegian: “Foretaksregisterloven”.
© Copyright Bedin -8- Written and compiled by the Bedin team (www.bedin.no)
they are entitled to bind the entity submit a translation confirmed by a
by signature or per procurationem 8. Register Return attachment translator authorised by the
requirements Norwegian authorities.
Note that 2, 3 and 4 above may be Memorandum of Association and
omitted if recorded in a foreign Company Articles of Association. D-number
register of legal entities as stated in Certificate of registration from the
no. 5 above. The foreign register register of business enterprises or
must be approved by the King of register of companies in the country
Norway. If applicable, the register of residence.
will also contain information related
Minutes from the competent body
to dissolution of the main company.
in the entity documenting the
election of any board and general
Special requirements for entities
manager specifically for the
that carry out VAT-eligible
activities in Norway.
activities in Norway:
Minutes from the competent body
Foreign entities without a perma-
showing the allocation of signatures
nent establishment in Norway and
or authorisations for the entity when
which are subject to the stipulations
such information is not stated on the
of the VAT Act, must appoint and
certificate of registration from the
report a Norwegian representative.
country of residence.
The VAT representative can be a
physical or legal person. The Foreign entities that will operate via
representative must have a residen- a VAT representative must attach
tial/business address in Norway. minutes from the competent body
The representative is jointly and documenting the appointment of the
severally liable for payment of VAT representative, and a statement from All persons holding positions
together with the foreign entity. the representative that he/she identified by the Coordinated
accepts joint responsibility with the register notification, e.g. the general
The required information must be entity for ensuring that VAT is manager and those authorized to
recorded in the Coordinated register calculated and paid. sign for the company, shall be
notification, partly in the Main Information that does not appear on identified by a personal identity
Form, partly as attachments (see either the certificate of registration number/D number/organization
below). or the articles of association must number, personal name/name of
be verified in the form of minutes enterprise and address. Foreign
Signature from the competent body in the citizens without a Norwegian
If the register return only refers to entity. personal identity number must state
the Central Coordinating Register their D-number (11 figures). If a D-
for Legal Entities, it shall be signed Registration in the Register of number has not been allocated, the
by the general manager, business Business Enterprises also requires: Central Coordinating Register for
manager or another responsible Minutes from the competent body Legal Entities will requisition one
contact person. in the entity verifying the decision from the Norwegian National
Notice of first time registration to establish activities in Norway. If Census Register (Personregisteret –
in the Register of Business the notice is signed by an authorised Skatt nord). Use the form "Request
Enterprises shall be signed by the signatory in the entity, it is not for assignment of D-number" and
board members of the Norwegian necessary to submit the attach a signed copy of the foreign
enterprise. If such a board does not aforementioned minutes from the person's passport.
exist, the general manager shall competent body in the entity. The form can be downloaded
sign. If there is no general manager from the Brønnøysund Register
either, the register return shall be Documents that contain registration Centre (D-number form). Personal
signed by an authorised signatory in information shall be in Norwegian. identification numbers and D-
the country of residence. In extraordinary circumstances, numbers are confidential and will
documents in other languages will not be disclosed to unauthorised
be accepted at the discretion of the persons.
8
A legal term often abbreviated p.p.
registrar. It may be required to
meaning ”by agency” or “ by proxy”.
© Copyright Bedin -9- Written and compiled by the Bedin team (www.bedin.no)
Authorisation
Some types of businesses require
authorisation before starting up or
the business is conducted. Authori-
sation is for instance required for
businesses like: Driving instructors,
doctors, physiotherapists, auditors,
accountants, lawyers, stockbrokers,
real-estate brokers to mention some.
If your business falls within the
above categories, is a matter that
should be raised with the proper
authorities. Admittedly, it is some-
times difficult to identify the correct
authorities, and if in doubt, contact
the Narvik business hotline (800 33
840).
VAT - who and when If a cash payment has been made VAT shall be calculated and paid
for the imported goods, the import on the importation of goods. For the
The Tax Office maintains records of
declaration, stamped by the customs purpose of VAT liability, it is
businesses that are obliged to pay
treasurer/office will serve as docu- irrelevant whether a consumer or a
VAT (the VAT Register), and is
mentation of deductible input VAT. taxable entity imports the goods.
responsible for the administration
VAT must also be paid on the
and control of VAT.
Foreign businesses engaging in purchase of services from abroad.
The part 2 of the Coordinated
activities which are liable to VAT Liability for VAT exists if the
register notification is dedicated to
registration shall calculate and pay purchaser is a taxable entity or a
companies that are affected by the
VAT according to the same rules as public institution and the service
VAT regulations.
Norwegian businesses. would be liable to VAT if supplied
All people running businesses
VAT shall be paid on the sales in Norway.
that sell goods or VAT eligible
of all goods and services, unless
services are obliged to register in
they are specifically exempted from
the VAT register when the turnover
VAT liability. VAT is also charged VAT rates
exceeds NOK 50 000 over a period
on the withdrawal by the owner of
of 12 months. The standard rate of VAT is 25 per
goods and services from his own
If you are registered in the VAT cent. The rate of VAT on the sales
business when such goods and
register, you are allowed to deduct of foodstuff is 15 per cent. The rate
services are for private use or for
VAT from the cost of the goods and on public transport, on letting of
other purposes falling outside the
services used in your own VAT rooms in hotels, motels and tourist
scope of the VAT Act.
eligible business. cabins etc., and the hiring out of
For charity and public camping areas, cabins, and holiday
The supply of certain goods and
institutions and organizations, the flats is 8 per cent.
services are exempted from VAT,
registration limit is NOK 140 000.
for example sales and letting of real
property and rights to real property,
General rule Registration in the VAT
financial services, health care
A complete presentation of the rules services, social services and Register
governing VAT is found in the educational services. A wide range Both foreign and Norwegian
”VAT Act”. The general rule is that of services in the cultural area are businesses supplying goods and
VAT (output tax) is calculated on exempted. The same applies to services in Norway, shall register in
all sales of goods and services,.. certain services in the tourist the VAT register when their sales or
VAT on purchased goods and business, like guide services. withdrawals of such goods and
services (input VAT) are Taxable entities with only exempted services exceed NOK 50 000 over a
deductible. sales shall not register for VAT and period of 12 months. A written
Certain expenses do not qualify do not get credit for input tax on notice of the business activities
for deduction of input VAT. Among purchases. shall be sent to The Central
these are food expenses, payment in Coordinating Register for Legal
natural goods and representation Some sales of goods and services Entities (CCRLE) or to the Tax
expenses. are exempted from output VAT, but Office where the foreigner (or his
All input VAT deductibles must qualify for deduction of input VAT representative) has his place of
be qualified by genuine documenta- under certain conditions. Such business/residence. The written
tion, e.g. invoices, sales documents conditions include for instance notice shall be given by filling in
etc. export of goods and services, sales the registration form "Coordinated
and services to foreign ships or register notification" part 1 and 2. If
When goods are imported, the Norwegian ships engaged in foreign the business is already registered in
customs declaration11, together with trade, to aircrafts in international CCRLE and has given all the
an account statement from the routes and sales and services for use necessary information to this
customs treasurer, serve as docu- in the offshore petroleum industries. register, only part 2 of the
mentation of deductible input VAT. Note that companies engaged in registration form shall be filled in.
such sales still are obliged to
11
The declaration is received from the register for VAT. The registration can also be done
TVINN system (the Directorate of electronically through
Customs and Excise's information www.altinn.no
system for business enterprises)
Special conditions
Obligations and rights Foreign suppliers of electronic
A business established or resident communications services are
in Norway must carry out its obliged to calculate and pay
bookkeeping according to the Norwegian VAT when such
Parent companies in a
corporation will always be obliged
to appoint an auditor.
The right to illness benefits for sole three years. The definition of the work representing at least two man-
proprietorships and owners of pension points is not given here. labour years.
unlimited companies starts from the Note that it is the income defined as
17th day of absence. The benefit basis for the pension points that The act does not apply to employers
equals 65 per cent of the ordinary warrants the right to illness who have a pension scheme in
income. benefits, not the income derived accordance with legislation or
You may achieve a better com- from the business activities. If you collective agreements that apply to
pensation by a voluntary additional have income both as an employee state or local authority employees.
national insurance contribution. and from business activities at the
There are three alternatives: same time or in different periods, it Employers must either have a
65 per cent of the ordinary income is the combined income that forms defined contribution or a defined
from day 1 if you pay an additional the basis for calculation of the benefit pension scheme. Defined
insurance premium of 1.8 per cent illness benefits. benefit schemes provide pre-defined
100 per cent of the ordinary income benefits, usually a certain percent-
from the 17th day if you pay an age of the members' salary on
additional premium of 2.7 per cent Maternity benefits retirement. In defined contribution
schemes, employers pay a pre-
100 per cent of the ordinary income Parental benefits: Self-employed
defined annual contribution.
from day 1 if you pay an additional receive parental benefits calculated
Defined contribution schemes are
premium of 10.0 per cent. on the average pension-
offered by banks, life insurance
(Rate per January 2012) accumulating income over the last
companies, pension funds and
three years of income. Parental
companies that manage securities
Regardless of the ordinary income, benefit amounts to 100% of the
funds. Defined benefit schemes are
the upper limit for illness benefit is calculated income base.
offered by life insurance companies
set to 6G, where 1G is the National Information about the scheme is
and pension funds.
Insurance basic amount (of money) available at the local office of the
Employers will pay contributions
used for calculating benefits from Norwegian Labour and Welfare
into the scheme every year, so that
the social services. In 2011, 1G Organization (NAV).
employees earn pension entitle-
equals NOK 79 216 per year.
ments. The contribution must be at
least two per cent of the employees'
If you suffer some kind of occupa- Mandatory occupational earnings between 1 G and 12 G in a
tional disability within four weeks pension defined contribution scheme. A
from the date the social services
The duty to have an occupational corresponding requirement applies
received your application for
pension scheme applies to to defined benefit schemes. In
inclusion in the national insurance
companies, both taxable and tax- addition to the contribution, the
scheme, you are not entitled to the
free, with man-labour years above a pension scheme shall also contain
compensation or social benefits
certain minimum level. The duty an insurance element that ensures
normally covered by the insurance
applies to companies that have: that employees continue to earn
scheme.
The premium for the insurance at least two persons who both have pension entitlements in the event of
working hours and wages that disability. It is permitted to exclude
is deductible on your tax return.
represent 75 per cent or more of a employees under the age of 20 and
full time position, those in part-time employment of
at least one employee, without less than 20 per cent of a full-time
Calculation of the basis for position from the pension scheme.
ownership interest, who has
illness benefits Employees may be required to also
working hours and wages that
The basis for the illness benefits represent 75 per cent or more of a contribute to their own pensions,
will normally follow the income full time position, or but such contributions will not
defined as the basis for calculation reduce the minimum requirement
persons, who each have working for employers' contributions.
of pension points. The benefits are
hours and wages that represent 20 Employers are also obliged to cover
then calculated on basis of the
per cent or more of a full time the costs of administering the
average pension points for the last
position, and together carry out pension scheme.
An employer in a private enterprise restaurants in the summer, are Organization (NAV) will then
may employ whom he/she wants. allowed. contact you. Later on, you must
Nevertheless, the Employees Act Temporarily appointed workers send a new notification whenever
has some rules that must be obeyed. must not perform the ordinary an employment starts or ends.
The employer cannot demand running of the enterprise. General Remember that you have to
the applicant to give information variation in the market, e.g. the register yourself as an employee if
concerning political, religious or flow of orders, will not be a reason you work in your own limited
cultural questions or if he/she is a for appointing someone tempo- liability company.
member of any employees' rarily. But if unexpected situations Note also that you have to establish
organizations. As a general rule, occur that will cause temporary work hazards insurance for all the
questions concerning sexual increase in the quantity of work, employees.
orientation or partnership are temporary appointments may be
prohibited. However, if such allowed.
information is related to the nature Working as a trainee – education in The Employee Register
of the occupation and of importance a profession. The forms used for registration in
for the work, the applicant may be
Working as a substitute. – The the employers’ and employees’
asked to give information about
stand-in must be hired for registers are obtained from the
this.
replacement of specific persons and Norwegian Labour and Welfare
If a trial period is agreed upon,
incidents, e.g. illness, holidays or Organization (NAV). Alternatively,
this agreement must be written and
leaves of absence. you may submit the form via
the trial period shall not last longer
than 6 months. Participants in unemployment www.altinn.no (in Norwegian).
programmes run by or in co- The forms must be returned no
For work in a public limited
operation with the labour market later than the Friday following the
liability enterprise, the Administra-
authorities. start or termination of the
tive Act applies in addition to the
The company manager may be employment.
Working Environment Act. For
appointed fore a set number of A notification of employment
employees of the national
years. must be sent when the work relation
authorities, the Civil Servants Act
is expected to last more than six
may also apply. The Equal Status Some jobs within sports –
days and consist of on average at
Act also contains regulations sportsmen, trainer, referees and least three hours of work per week.
concerning appointments. other leaders within the sports. The employer must also inform
The main rule is that the Work within art, research or sports about any changes in the name,
employee shall be permanently with tariff agreements agreed upon address and location of the
appointed. between a national employees' business.
Temporarily appointed working organization and the employer. All notifications to the NAV
agreements are agreements that are
office must include the organization
valid for a stated period of time or a The working agreements will end number of the business.
stated work that is of an incidental automatically when the time limit You cannot employ foreign
nature. If someone is appointed agreed upon is reached or the work persons unless they have work
temporarily, it is a premise that the is completed, if not otherwise permits.
conditions for temporarily agreed upon. Following the Working
appointed working agreements are
Environment Act, there are
present.
limitations as to what types of work
Temporary appointment is
Registering the employee may be done by persons between
allowed in the following situations:
If, at the time of registration in the the ages of 13 and 15 years.
When the work is of a temporary Persons under the age of 16
nature or is separated from the Central Coordinating Register for
Legal Entities or the Register of years cannot work between 21:00
ordinary work that normally is done and 07:00, while people between
in the enterprise. This may be Business Enterprises, you know you
will employ people, you should the ages of 16 and 18 years cannot
season work, e.g. within the food work between 23:00 and 06:00.
industry and tourism. mark the “yes” (“ja”) box of the
Coordinated register notification.
Temporary appointments for
The local office of the Remember that you have to
picking soft and hard fruits, guiding
Norwegian Labour and Welfare register yourself if you work in a
tourists, serve at outdoors
your own company of limited liability
Some types of businesses require Contact the municipal administ- Building licence
special licences. Some of these ration for further information.
In order to raise a new building
licenses are described in this
or do other building jobs, such as
section.
altering the facade, erecting a new
Transport business supporting wall or demolition of a
Authorization To start and run certain types of building, an approval is needed
Some types of businesses require such businesses requires a licence. from the municipality. Approval is
that the owner or responsible person Application is submitted to the also necessary in order to alter the
has the required authorization. Such transport board of the county. usage of a building, e.g. converting
authorization is required for: Licensed businesses include: from living quarters to offices.
Driving instructors Taxi driving If in doubt about the necessity of
Doctors Ambulance driving an approval, you ought to contact
the building authorities of the
Physiotherapists Buses and other types of public
municipality before any building
Auditors transport
job is commenced. An application
Accountants for licence will be processed within
Lawyers a period of a few weeks to several
Currency regulations months.
Stock brokers
Bond brokers Payment abroad
When money is transferred between Identity cards in the building
Real estate brokers
Norway and a foreign country, a and construction industries
declaration of payment (betalings- The introduction of identity cards is
melding) must be filled in. The a measure aimed at achieving more
Travel agencies, travel currency bank fills in the form, but efficient control of employees’
organizers etc. the customer is responsible for the health, safety and working
To run a business arranging travels, validity of the contents of the environment as well as greater
you are required to raise guarantees declaration. The bank is required to accountability in the construction
consisting both of individual and demand proof of identity from the industry.
collective guarantees. Questions customer when the amount of
related to travels and travel guaran- money transferred abroad exceeds All enterprises, whether Norwegian
tees are directed to the Reisegaran- NOK 10 000 and NOK 40 000 to or foreign, performing work on
tifondet, in charge of administering Norway. If the transfer exceeds building and construction sites are
the required guarantees. NOK 60 000, the customer is required to issue ID cards to their
required to divulge the cause of the employees. The ID cards must also
payment. be used by sole proprietorships
Catering businesses (self-employed enterprises).
Foreign bank accounts Employees of foreign enterprises
In order to run a catering business,
such as café or restaurant, you must When an account is established that operate in the building and
have authorization from the muni- abroad, the Norwegian Bank construction industries in Norway
cipality where the business is (Norges bank) must be notified. All must also carry ID cards. If
located. The local branch of The transfers to and from the foreign employees are hired through an
Norwegian Food Safety Authority account must be reported to the agency, it is the recruitment agency
(Mattilsynet) must accept the Norwegian Bank. In addition, you that must ensure that the hired
premises and the business, before are required to declare, in writing, employees have been issued with
authorization is given. Also, the that the foreign bank may submit ID cards.
manager cannot have a criminal information about the account to the
record. Norwegian Bank. The requirement even applies to
Further information may be personnel who perform support
Licence to serve alcohol requested from the Norwegian functions such as cleaning, catering
Bank. etc. where such support functions
Serving alcohol for payment
requires a special licence from the are permanently established at the
municipal authorities. The licence is building or construction site. Also
given to each place individually. people who transport goods to the
It is the duty of the Customs and The goods cannot be used or Information from the
Excise authorities to charge custom exported before the customs office Directorate of Customs and
duties and taxes as well as control has approved by giving the Excise
all import and export into and out of transaction a dispatch- and serial
The customs authorities have
Norway. Accordingly, there is a number.
produced their own handbooks
number of rules that must be The customs authorities will in
related to import and export of
adhered to. each case decide if and to what
goods.
The actual customs transaction extent the goods shall be checked.
These handbooks, found on the
is based on the principle of personal The check may be in the form of
Internet pages of the directorate
declaration. This means that the document check, physical check of
(www.toll.no), are in Norwegian
importer/exporter declares the the goods and/or check of the
only.
goods to the customs authorities by owner’s/exporter’s books.
Contact the nearest customs
an electronic (EDI) transfer to the
office for further information.
TVINN system, i.e. the customs
authorities’ central information
system for the businesses, or by Remember to contact the customs
filling in the Single Administrative office when goods are imported or
Document (SAD). exported.
On the authority of the It is your responsibility to make sure
Norwegian Directorate of Customs all current regulations are followed.
and Excise, some importers, You may avoid many problems if
exporters and transport agencies are you check out the regulations
allowed to carry out the customs before the transaction takes place.
dispatching.
Before you start starting a business is right for you. often stated in competitive terms.
And in the critical, early days when For instance, the vision of General
You are contemplating starting your
the business is established, the plan Electric is "We bring good things to
own business. In that case, there are
will reduce the risk for failure. life". The mission statement is the
a number of considerations to be
vision translated into written form.
made before the enterprise is a
Do not make the plan more volumi- We will argue that for the
reality.
nous or complex than necessary. majority of companies, having
Imagine you are about to start on
However, the business plan must, vision and mission statements
a sailing trip and there are many
with respect to contents and layout, changes nothing. The value is
islands and rocks in the area. If so,
be a high quality product. If limited, unless the company
it is vital that you know where you
presented to a financial institution, owners, management and executi-
are, where your destination is and
Innovation Norway or others, the ves live the vision, are seen to live
how to navigate to get there. Also,
executive officer will notice if the the vision and constantly
you must consider what equipment
plan is thoroughly prepared and communicates the vision to the
you need for the trip.
realistic, if all parts hang together, employees.
In the business community such
if you have covered all aspects, if However, what you do need is a
“travel documents” are called a
the market analysis is realistic, if clear, well defined business idea,
business plan. Thus, the business
your budgets are correct - and i.e. a statement telling what you
plan is a document that describes
finally, if the plan's layout and intend to do (your products/-
your business idea and how you
design are attractive. services) and where to do it (your
intend to run your business.
There is no denying that writing marketplace).
a comprehensive business plan is a
The Business Plan outlines the challenging exercise. We will
business idea and how to achieve recommend that you invest con- Marketing
your goals siderable time and effort in making
The key to marketing is under-
it as accurate as possible. The
standing your customers. You must
All experienced entrepreneurs agree reward is a document that gives you
be able to profile your target
that the process of writing the necessary insight both in the
customer and his/her likes and
business plan is the best method to business idea itself and the potential
dislikes accurately. This will help
reach a decision on whether to start in the market place.
you understand how to position the
up or not. A business plan is also Furthermore, we strongly
product in the marketplace and how
vital to the success of the new recommend that you write the plan
to price the product. You should
business. The plan is your tool in yourself. It is tempting to engage
also be aware of how your customer
dialogue with banks, investors, professional consultants for the job,
base is likely to change over time,
cooperation partners and possibly but the plan should be your achieve-
whether it is declining or growing.
public support organizations such as ment, reflect your aspirations and
Do your planning properly:
Innovation Norway13. The plan give your points of view. However,
Collect facts, analyse the data,
includes all that is necessary for if you need professional advice on
make some strategic decisions
others to decide if it is worth while certain aspects, e.g. the product's
about the market and express your
to support your activities towards market potential, patents etc., don't
goals. Also, express how you intend
your own enterprise. Do not copy hesitate to seek assistance. In fact, it
to reach these goals. An analytic
from others. This is your plan, - may prove productive to have
approach is to do a realistic SWOT
your ideas should be reflected. someone to talk to during the
(strengths, weaknesses,
Note that the business plan in process, - someone to test your
opportunities and threats) analysis
essence is a prediction or a ideas on, who is willing to provide
of each market segment and/or
simulation that reveals elements / friendly advice and criticism.
product. You will probably
aspects that helps you decide if
experience that the final plan
requires a fair amount of iteration.
13
Vision, mission statement and You are likely to detect areas of
Innovation Norway is an organization
business idea concern that influence earlier
that promotes nationwide industrial
development profitable to both the
The vision is a short, succinct and decisions, thus having to go back
business economy and Norway's
preferably inspiring statement about and make amendments.
national economy.
what the enterprise intends to
www.innovasjonnorge.no
achieve at some time in the future,
This glossary gives brief explana- Tax on gross income (Bruttoskatt) copy to the employee or recipient of
tions plus the Norwegian terms and The tax on gross income comprises pension or benefit.
phrases of some of the terms used in surtax and National Insurance
this document. contributions, and is calculated on Value-added tax (VAT)
In particular, terms used in relation personal income. (Merverdiavgift (moms))
to taxes are not always easy to
VAT is an indirect tax on most
understand. Some of those
Property tax (Eiendomsskatt) goods and services.
explained here are used in the
document, but not all. However, A municipal tax on different types
you are likely to come across others of property. The municipality itself Net tax (Nettoskatt)
in your dealings with the tax decides according to specific rules Tax charged on general income. Net
authorities. whether or not to impose property tax includes tax to the municipality
tax and the size of the tax. and county as well as national
Taxation income tax to the state.
Wealth tax (Formuesskatt)
General income (Alminnelig inntekt)
Wealth tax is charged on net wealth. VAT return (Omsetningsoppgave)
General income is the sum of all
Gross wealth includes cash, bank Statement sent to the tax authority
taxable pay, income from self-
deposits, shares, fixed assets, (data input centre) by a business
employment and capital income less
private cars, assessed value of real enterprise or self-employed person
standard deductions and certain
property, etc. Net wealth is equal to liable for VAT showing the amount
expenses with the exception of
gross wealth less debt. A certain of VAT to be paid to or refunded by
special deductions. Normal
proportion of wealth is tax-free. the state. VAT returns can be
deductions are the minimum
Wealth tax is divided between the delivered electronically via the
standard deduction (minstefradrag),
municipality and the state. Internet. VAT returns are dealt with
deductions for travel between home
and the workplace, child-care by the Tax Office.
deduction and interest on debts. Tax certificate (Likningsattest)
The tax certificate accompanies the Pension points (Pensjonspoeng)
Advance tax (Forskuddsskatt) tax settlement notice. It shows The pension points are awarded as a
general income and wealth, tax function of the income defined as
Self-employed persons pay tax in
class and personal identity number. the basis for calculation of future
advance four times a year. These
In the case of married persons, it pension. This means that not all of
advance tax payments are calculated
also shows the spouse’s general the general income serves as basis
on the basis of expected income.
income, wealth, tax class and for the calculation.
Some wage-earners and pensioners
personal identity number. Persons from 17 to 69 years of age
with low income and high wealth or
capital income also make advance may have income as mentioned
tax payments in addition to tax Certificate of pay and tax deducted above, based on employment or
deductions from pay or pension. (Lønns- og trekkoppgave) self-employment. The number of
Capital income includes income The certificate of pay and tax pension points decides the amount
from interest and property rental. In deducted is filled in by the of additional pension received from
the case of wage-earners and employer. It shows what the the National Insurance Scheme.
pensioners who pay advance tax, employee has received in pay and
the amount is printed on the tax other allowances, such as Personal income (Personinntekt)
deduction card. subsistence allowance, company Personal income may consist of
car, etc. during the course of the pay, pensions and/or personal
Employer’s contribution year. It also shows the total amount income from active participation in
(Arbeidsgiveravgift) of tax deducted. The certificate of business activities. National
pay and tax deducted shall be sent
Employer’s contribution is paid by Insurance contributions and surtax
to the tax authorities by the are calculated in relation to personal
employers to the National Insurance
employer or remitter of pension or income.
scheme. It is calculated on the basis
benefit by 20 January (31 January if
of gross pay and allowances.
submitted electronically via
www.altinn.no) of the year
following the income year with a