Am I allowed to start my own business in Norway?
Yes — starting a business in Norway is straightforward. A sole trader (ENK) can be registered free in the Central Coordinating Register in Brønnøysund, and you are then personally liable for the business's debts. You must register the business for VAT once turnover passes 50,000 kr over twelve months. You pay tax on an ongoing basis through advance tax. If you instead want a limited company (AS), 30,000 kr of share capital is required plus registration in the Register of Business Enterprises for a fee. The standard VAT rate is 25% (15% on food, 12% on some services).
📋 The rules
- Sole trader (ENK): free registration, personal liability
- VAT registration once turnover passes 50,000 kr
- You pay tax on an ongoing basis via advance tax
- A limited company (AS) needs 30,000 kr of share capital
- Standard VAT rate 25% (15% food, 12% some services)
🔓 Exceptions
- Some sectors need a licence or approval (serving, transport, health)
- Registration in the Register of Business Enterprises can cost a fee, also for a sole trader
- Foreign founders need a Norwegian identity number to register
⚠️ Penalties & fines
Running a VAT-liable business unregistered or evading tax can bring additional tax and back-payment claims. Serious cases can be accounting or tax fraud with criminal liability.
📎 Official sources
❓ Frequently asked
Do I need capital to start a business?
No, not for a sole trader. A limited company, however, needs 30,000 kr of share capital.
When must I register for VAT?
Once turnover passes 50,000 kr over a twelve-month period.
What is the difference between a sole trader and a limited company?
In a sole trader you are personally liable; a limited company is its own legal entity with its own capital.
What is advance tax?
Tax you pay on an ongoing basis through the year based on the expected profit of the business.
Where do I register the business?
A sole trader is registered free in the Central Coordinating Register in Brønnøysund, via Altinn.
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