Norway: Operating a Business

Aksjeselskap, AS (Limited Company)

Number of partners: One or more with no maximum.
A minimum of two directors must be appointed, one of whom must be a Norwegian or European citizen.
Capital (max/min): NOK 30,000
Shareholders and liability: Liability is limited to the amount contributed.

Allmenne aksjeselskap, ASA (Public Limited Company)

Number of partners: One or more with no maximum.
At least 3 directors, at least 2 of whom must be residents in Norway.
Capital (max/min): NOK 1 million
Shareholders and liability: Liability is limited to the amount contributed.

Ansvarslig selskap med delt ansvar, DA (General Partnership w. shared liability)

Number of partners: Two or more with no maximum.
Capital (max/min): No minimum capital.
Shareholders and liability: Unlimited, but each owner is responsible for the share of debt corresponding to his/her share of the ownership

Ansvarslig selskap, ANS (General partnership)

Number of partners: Two or more with no maximum.
Capital (max/min): No minimum capital.
Shareholders and liability: Liability is unlimited.

Enkeltmannsforetak (Sole proprietorship)

Number of partners: Only 1 person.
Capital (max/min): No minimum capital.
Shareholders and liability: Liability is unlimited.

Business Setup Procedures

The Competent Organisation

Brønnøysund Register Centre maintains open annual accounts on all Norwegian companies.

For Further Information

Consult Doing Business Website, to know about procedures to start a Business in Norway.

Financial Information Directories

Brønnøysund - Directory with announcements from the Register of Business Enterprises of Norway

Dun & Bradstreet - Worldwide directory with financial information on businesses

Kompass - Norway Business Directory

Recovery Procedures

Principle

The Bankruptcy Act and the Creditors Recovery Act are the main Norwegian insolvency laws. If the equity of a company is less than 50 % of registered share capital or otherwise seems to be less than what is required, the Board of Directors is required to take action.

Bankruptcy proceedings may be initiated if applied by the debtor or an unsecured creditor. The applicant must show that the debtor is insolvent (unable to pay debts as they fall due) and insufficient (debtors’ liabilities exceed his assets). In bankruptcy proceedings all the debtor’s assets to which the creditors have access are confiscated and liquidated for distribution among the creditors. The debtor loses control of these assets from the time of application for bankruptcy. The bankruptcy is publicized and registered in public registries.

Minimum Debt-to-Capital Ratio Triggering Liquidation

No.

Bankruptcy Laws

The Bankruptcy Act and Norwegian Creditors Recovery act.

Reorganization and Rehabilitation Laws

Debt reorganisation proceedings may only be initiated with the consent of the debtor. The debtor must be able to demonstrate that he is insolvent but not likely to obtain a composition with his creditors. If an application for debt reorganization proceedings is granted, it will generally stay a bankruptcy application for a period of three months, if it's not supported by at least three unsecured creditors, who also represent at least 40 % of the claims.

For Further Statistics

Statistics Norway

For Further Information About the Labour Market

International Labor Organisation's (ILO) page on Norway

Opening Hours

 

• Legal Weekly Duration

35.5 hours for shift workers and 37.5 hours for others. This includes a half an hour lunch break.

• Maximum Duration

Allowed overtime per year, week and day is strictly regulated. Overtime is limited to 10 hours per week and 25 hours in a four-week period. Yearly overtime for an employee cannot be over 200 hours. Maximum length of a single work-day is 13 hours. In exceptional cases, and after approval by the authorities, more overtime can be used. 

• Night Hours

Night hours are between 9 pm and 6 am. Night work is permitted only for defined activities that cannot be performed during day time.

Working Rest Day

Weekly rest day is Sunday. Working on Sundays is allowed only by special permission or agreement with a labor union.

Paid Annual Vacation

Legal minimum is four weeks plus one day of continuous holiday (25 working days off). Employees age 60 and older are entitled to have at least five weeks of vacation. It's a common practice that high-level employees get 31 days off. 

Retirement Age

Official retirement age is 67, but early retirement is allowed at 62. Employees have the right to continue working until the age of 70. 

Child Labour and Minimum Age For Employment

15 years.

Informal Labour Market

In 2001 undeclared work amounted to approximately NOK 11 billion.

Pay

Minimum Wage

No minimum wage exists.

Average Wage

According to the Statistics Norway, in 2021 Norwegians earned NOK 50,790 per year on average.

Other Forms of Pay

• Pay For Overtime

40%. However, in practice,  many employees get 50%.

• Pay For Rest Days Worked

Working on Sundays is allowed only in special cases. Compensation may vary according to collective or regional agreements.

• Pay For Night Hours

Night work is permitted only in specially defined cases. Pay may vary according to collective or regional agreements.

• Pay For Overtime at Night

Night work is permitted only in special defined cases. Pay may vary according to collective or regional agreements.

Social Security Costs

The Areas Covered

All residents in Norway are covered by the National Insurance Act. This national insurance scheme covers unemployment benefits, medical treatment, sickness benefits, maternity benefits, child benefits and support during the illness of children and pensions. National insurance is financed by contributions from employers, employees and the Norwegian government.

Contributions

Contributions Paid By the Employer: Employer’s social security contributions are due for all employees in both the private and the public sector. The normal rate for the employer is 14.1 percent on gross earnings. The contribution is geographically differentiated according to the municipality where the work-place is.
Contributions Paid By the Employee: An individual working in Norway is subject to Norwegian social security contributions. The employee’s contribution is 8% based on gross wages. This contribution is not required when the salary is less than NOK 64,650 per year.

Competent Organization

Norwegian Labour and Welfare Administration

Recruitment

Method of Recruitment

Usually an advertisement is placed in the classified advertisements of the daily newspapers. Largest newspaper for recruitment ads is Aftenposten. Aftenposten's ads are also available in Internet at www.finn.no/jobb (in Norwegian). Aspiring candidates can call for more information and send their CV accompanied by a letter after which a number of candidates are selected for an interview. Usually majority of the vacancies are also listed in the Internet.

Recruitment Agencies

The Public Employment Service is available throughout the country and widely used. The number of private recruitment agencies is limited, although increasing. Manpower and Adecco are the largest recruitment and temping agencies.

Recruitment Websites

The Public Employment Service
Manpower Norway
www.finn.no/jobb (in Norwegian)
Adecco Norway
Norges Vikar
Randstad

The Contract

Dispute Settlement

Social Partners

Employer Associations

NORSKINDUSTRI - Federation of Norwegian Industry
NHO - Confederation of Norwegian Enterprise
VIRKE - Federation of Norwegian Enterprise

Social Dialogue and Involvement of Social Partners

Norway has strong traditions in collective bargaining, and trade unions hold a prominent position. Although the trade union density rate has been decreasing in recent years, more than half of the Norwegian labour force is still collectively organised. Strong emphasis is placed on central organisations of employers and employees. Compulsory collective agreements supplement legislation in wages, working conditions and benefits. Results of central wage negotiations between the large employee's and employer's organisations serve as guidelines for the local wage negotiations.

Unionisation Rate

52%

Labour Unions

The Norwegian Confederation of Trade Unions (LO)
Confederation of Unions for Professionals
Federation of Norwegian Professional Associations

Regulation Bodies

Ministry of Labour and Social Affairs