Registering a New Company: Norway

Part
01
of two
Part
01

Registering a New Company: Norway

The process of starting a small/mid-sized company in Norway is considered relatively easy when compared to other regions. In general, this process will involve establishing a private limited company (AS), depositing the minimum capital amount of NOK 30,000 in a bank, and then registering the company with the Brønnøysund Register Center.

OVERVIEW OF STARTING A NEW BUSINESS IN NORWAY

  • In Norway, a private limited company (AS), which is also referred to as a limited liability company (LLC), is a typical business entity for small or medium-sized companies.
  • All businesses in Norway "must register with the centralized Registry at Brønnøysund."
  • Registration will require a physical address in Norway. A Norwegian national ID number or d-number will also be required.
  • Before registering, Norway's paid-in minimum capital of NOK 30,000 must be deposited in a bank.
  • Norway's official business registry site can be found here. Currently, the site reports a processing time of 13 days for limited liability companies.
  • If there are 30 employees or more, an LLC will have to designate a company director.
  • According to Healy Consultants Group PLC, it takes five weeks to set up a limited liability company in Norway. The time to set up a company bank account is approximately four weeks.

FURTHER INFORMATION REGARDING BUSINESS BANK ACCOUNTS

  • According to the Altinn site, an informational resource provided by the Norwegian government, founders of an LLC should "ask the bank to set up a share capital account," and ask for confirmation of receipt after depositing the minimum capital. The value of any non-cash portion of the minimum capital will have to be verified by an auditor.
  • According to TMF Group, the Know Your Customer (KYC) process when setting up a business bank account may take as long as one month, and it is, therefore, "pertinent to plan for this challenge."
  • According to the World Bank, a common bank used for this purpose in Norway is DNB ASA. The bank account will be blocked "until the company has been registered."
  • An official resource page on starting a business from the DNB ASA site can be found here, along with contact information.

IS NORWAY CONSIDERED CHALLENGING WHEN COMPARED TO OTHER REGIONS?

RESEARCH STRATEGY

To establish what the process of starting a new company looks like, we searched for information regarding specific procedures required to set up a new business in Norway and any relevant banking requirements and government regulations. We focused our efforts on the process of starting a business for small to mid-sized firms, and also on how the "ease" of Norway's process compares with other countries and regions, in order to provide the best answer possible. We were able to locate this information using official sites provided by the Norwegian government, several reputable international business consulting firms, and the World Bank.

Part
02
of two
Part
02

Digital Services Trends: Norway

The use of Big Data, Digital Payments, Artificial Intelligence, the Internet of Things, and Cybersecurity are five trends in terms of digital services being offered to businesses in Norway.

TREND #1: THE USE OF BIG DATA

  • A business accumulates data every day, which means large amounts of data saved in a short time. The success of the business will depend on data management.
  • The term Big Data is used to describe the organization of large amounts of data. In other words, Big Data is the process in which businesses organize their data.
  • The importance of Big Data lies in the ease in which businesses can reduce cost and time to analyze sources from the data and find solutions that will help them with:
  • Failures - If a business is having issues, it can find the root of the problem due to the analysis.
  • Building a customer profile - The analysis allows businesses to see customer's buying habits and create a pattern that will turn into sales.
  • Preventing any risk in the organization.
  • Deciding when a product is going to be successful or not.
  • The use of Big Data in Norway is happening in almost all sectors, especially for online and digital businesses. That happens because the human resource is not the right fit for the organization of large amounts of data, especially nowadays when everything is becoming digitalized.

Some Norwegian businesses using Big Data are:


TREND #2: DIGITAL PAYMENTS

  • With the arrival of big companies like Amazon and Apple to Norway, many local businesses merged to create a solution to face competition.
  • Norway is the country with less cash use all over Europe. People prefer to pay with cards or mobile payments. Besides, Norway has a big chance of becoming the first European country to not use cash.
  • With Amazon and Apple pay available in the country, companies were experiencing too much competition. For that reason, the app VIPPS was created.
  • VIPPS is the leader app of online payments in Norway and Europe. After its huge success, VIPPS merged with the Norwegian Bank and BankID, becoming the go-to option for payments in Norway.

This trend is being used by businesses like:


TREND #3: ARTIFICIAL INTELLIGENCE

  • Artificial Intelligence is part of computer science, and its role is to create machines that imitate and react almost like humans. Its importance lies in facilitating human's work. The problem is that machines with AI aren't able to reason, think, or use logic to solve problems.
  • Norway uses AI to be able to improve education, research, innovate, and compete as a potential country.
  • This trend is so popular in Norway that there is an invitation for Norwegian businesses to join the Norwegian Open AI Lab.
  • The process is quite advanced, but the problem of finding a solution for the reasoning of the machines remains the same.

Some Norwegian businesses working forefront are:


TREND #4: INTERNET OF THINGS (IoT)

  • In simple words, the Internet of Things is the process in which you can transfer data without human interaction or human and computer interaction. An example of IoT is a Samsung Fridge, in which you can send and receive data.
  • The demand for IoT in Norway increased due to the early use in other countries like the USA and China.
  • IoTis trending because Norway wants to innovate, change old patterns, and be as digitalized as the rest of the first world countries.

Some companies upfront are:


TREND #5: CYBERSECURITY

  • Many incidents related to Cybersecurity in Norway made this a trend.
  • Norwegian People love buying cashless, but they do not want to be scammed. Obviously, with the rise in online payments and the digitalization, cybersecurity is a measure that businesses had to take.
  • The Norwegian government wants the secure digitalization of the entire country. For that, it invites public and private companies to join and apply the strategy for cybersecurity in Norway.

Some companies upfront are:


Research Strategy:

The first step in our research was to find an overview of the current situation of online businesses in Norway. After which, we started looking for the digital services offered to businesses in Norway.

We found an essay of the current trends for Digital Businesses in Norway, and the legal framework of it. With that information, we were able to dive into the trends for digital businesses in Norway.
Sources
Sources

From Part 01
Quotes
  • "While Norway is known as one of the easiest countries in the world in which to do business, there are some challenges that those new to the market should be aware of. "
Quotes
  • "The partners need to deposit the paid-in minimum capital (at least NOK 30,000) in a bank. The procedure is done electronically through the bank’s online platform. One of the commonly used banks by private persons and business owners is DNB ASA. It’s website is www.dnb.no. The account is blocked until the company has been registered."