Hiring out personnel to Norway: A Quick Startup Guide
Hiring out personnel to Norway can be a profitable business. However, if you are a foreign company hiring out employees, there are several registration and reporting obligations you need to be aware of and comply with. Most likely there will be tax consequences, social security issues and sometimes also immigration issues which must be considered. In addition you should be aware of Norwegian labour regulations which could affect your business in Norway.
Hiring out personnel to Norway:
- What can we do for you?
- The necessary steps
What can we do for you?
The corporate lawyers at Codex have broad experience assisting foreign companies in Norway. Our tax and labour law experts will gladly guide you through the necessary steps. Non-compliance with Norwegian regulations could result in severe penalties and comprehensive additional work. Codex therefore recommends that foreign hiring-out businesses seek assistance as early as possible before hiring out personnel to Norway. Together we will work to ensure that the hiring out of personnel in Norway is conducted as profitable and seamless as possible.
The necessary steps
Below you will find our list with information about the necessary steps for starting up and registering a business hiring out personnel to Norway. We have also included links to relevant Norwegian governmental web pages, with more information and necessary forms to fill out. We invite you to get acquainted with our list and Codex will be ready to assist you whether you would like limited guidance regarding a separate question or a full scope of services.
Codex's list: Starting up and registering a business in Norway - Hiring out foreign personnel
- Decide how your hiring out company should be organized in Norway. If you already run a business in your home country, your enterprise could be organized as a Norwegian branch (NUF – Norwegian registered foreign company). If you wish to set up a Norwegian independent legal entity, a Norwegian limited liability company could be the right solution for you. All foreign companies hiring out labour to Norway must register in Norway (se point 2), thus a choice of organization type in Norway is necessary.
- Register your business with the Central Coordinating Register for Legal Entities in Norway and the Register of Business Enterprises. This registration will provide your company with a Norwegian company registration number. Such registration is mandatory and regardless of your company's tax liability to Norway. The registration itself will not cause tax liability to Norway.
- Register your company with the Norwegian Labour Inspection Authority's register of staffing agencies. This is mandatory for all companies, also foreign, hiring out labour to Norway.
- Check if you should register the employees to The Central Office for Foreign Tax Affairs (COFTA). If you choose to organize and register your business as a NUF your company is still regarded as a foreign company. Thus, the contract between your company (hiring out) and the company in Norway (hiring in) must be registered at COFTA on the form RF 1199. You, as the hiring out company, are responsible for the registration of every employee used to carry out the assignment in Norway on part 2 of the form. You are exempted from this obligation if the contract has a value below NOK 10 000. The form can be submitted on paper or electronically.
- Read more at Arbeidstilsynet.no: The Norwegian Labour Inspection Authority's register of staffing agencies
- Read more at Skatteetaten.no: Form RF 1199 - Submitted on paper
- Read more at Altinn.no: Form RF 1199 - Submitted electronically
Seek professional guidance
Before starting up your business in Norway we strongly advise that you seek professional guidance regarding the questions above. Codex will be happy to advice about which organizational structure you should choose, whether you need to fill out the forms or not, as well as how to fill them out.
Please note that this general list is meant for foreign based companies hiring out foreign employees in Norway. Other regulations may apply if you do not fit this description. There could be other relevant regulations for intermediary services. If you are in doubt whether this list fits your needs, please contact us.
Codex will also gladly assist you on the following issues connected to your business in Norway:
- General and strategic business advice
- Labour law obligations
- Tax liability for your company and for the personnel in Norway
- Payroll and tax withholding for the personnel
- ID control, tax deduction card and tax return for the personnel
- Social security issues
If you would like more information on how we can assist you, please do not hesitate to contact Codex.
Please note that the information contained in this document is of a general nature only and is subject to change. It is not meant to be comprehensive and does not constitute financial, legal, tax or other professional advice.