For the longest time, foreigners crossed borders to start a new life in Norway. Some of the expats in Scandinavia come to progress their careers while others seek to study or start an entirely new set of livelihood activity. While most foreigners end up working for already established companies in Norway, a few entrepreneurial ones take the rarely beaten path to establish their own businesses from scratch. Of course it may seem a tall order for a foreigner to come to an entirely new culture in Norway and end up starting a company. Yes it may not be as easy as one two three but then some have done it before and more keep doing it. So if you be a foreigner arriving in Norway and need to be your own boss by setting up a business or is already in the country and seen opportunities, this is for you to know about starting business in Norway.
Over the years, the Norwegian economy has grown pretty fast. The growth is credited to the country being a leader in various sectors. We are talking of energy, seafood, oil, and gas, as well as maritime sectors. Thus, Norway is a good location when starting a business.
Norway is among the world’s strongest economies which is why it receives a generous amount of money from Foreign Direct Investments (FDIs). In 2018, Norway received a whooping USD 140 billion FDIs. This was more than twice what the country had received the previous decade.
With approximately 5 million people, Norway boasts a business-friendly environment. The country attracts not only local investors but also international ones. Norway’s business market is ripe hence worth investing your money in.
The Business Market in Norway
Norway is without a doubt one of the best countries to live in. in addition to that, it is among the richest countries worldwide in terms of per capita income. This modern wealthy European country records the most stable economy over the years. The ease of doing business in this country makes it easy to set up a business venture.
Establishing a business in Norway is not complicated but rather straightforward. The process is clear and minimal. Do not be scared about the costs because they are pretty affordable. As you may know, Norway leads in oil export. That means it stands out with a competitive world economy.
It is clear as day that the business market in Norway keeps growing every waking day. This resilient country is a global leader in sustaining business. If you are considering engaging the Norwegian market, go ahead. The future is quite bright for all kinds of businesses in Norway.
The process of starting a business in Norway
The business culture in Norway is friendly and unstructured. The process of opening a business in Norway entails meeting an enterprise-friendly administration. You will need to provide well-supported process requirements before you receive the go-ahead.
Let us look at a step-to-step guide to establishing businesses with ease in Norway.
Before starting a business in Norway, it is critical that you understand their business culture. What stands out about this Scandinavian country is the ease of doing business. The business culture puts an emphasis on trust, empowerment, and flat hierarchies.
The Norwegian business culture puts an emphasis on a high level of trust. That is why many businesses thrive without involving a lot of formal structures. Additionally, cooperation is also important in Norwegian business culture for it is an essential tool for business success.
The next step is registering your company through the Brønnøysund Register Center. As a foreigner, you must have a Norwegian D-number (a personal ID number) to run a business in Norway. The kind of company you can register in Norway is a private limited liability company (AS).
The best part is the entire company registration process can be done online with ease. Even with that, it would be best if you worked with a Norwegian law firm. This is to ensure that the whole process is seamless.
The tax system
Having a business means at some point you will have to interact with the tax system. It is therefore paramount that you understand the Norwegian corporate tax system. You will find it pretty easy to comprehend.
The corporate tax in Norway is at a rate of 22%. What this means is the rate is applicable to your total profits and capital gains. As an employer, you have to contribute to the National Insurance Scheme at a rate of 14.1 %. Though the taxes are high just like in Sweden, you will receive quality services.
Businesses to partake in Norway
If you are in a dilemma about which business to start in Norway, this is for you. This county boasts of a thriving economy. This means there is a lot you can tap into and make good money.
Here are some of the most lucrative industries you can invest in Norway:
Renewable energy is a sector that is growing at a high rate in Norway. You may not know that this country is a pioneer in renewable energy. What does this tell you? That you will find a lot of opportunities in this industry that you can monetize.
Talk of installing solar panels to ease with energy and electricity crisis. You can also think of wind turbines. Interestingly, the Norwegian government gives flexible tax rates for those investing in renewable energy.
One of the countries with high life expectancy is Norway. Healthcare is a flourishing industry in this Scandinavian country. You will find countless opportunities that you can invest in.
You can choose to focus on healthcare providers. Check out hospitals both big and small that are in need of healthcare services. Look at the areas that you can focus on to make this industry grow even more.
Without technology, we wouldn’t be where we are today. Indeed, this is an ever-growing industry not just in Norway but also in the whole world. The technology industry offers so many opportunities that you can monetize.
Established companies require technology as well as startups. This is one area you can make money from. The tech business attracts a lot of money especially once you get started.
The downside of doing business in Norway
The high cost of living in Norway is the first challenge you will face. Everything is expensive. As you go to start your business, be ready to spend more to keep up with the high cost of living just like it is in Sweden.
Penetrating the Norwegian market is not that easy. The market is extremely competitive. To succeed as a foreigner, you have to work with local companies. Without that, you may not make it at all.