Key rules and obligations after starting a business in Norway
If you have decided to start your own business, you will certainly want to do so in line with the law and the generally applicable rules. Unfortunately, without help from someone familiar with the subject and the obligations of a business owner, or without training yourself in this area, it is likely that not everything will be done properly. That is why we would like to present a few of the most important rules, so that you meet all the obligations required by the state.
ANNUAL RETURNS
Annual returns for a business are required ALWAYS. Regardless of whether the business employs staff or generates income, and regardless of whether you run an ENK or are a partner in an AS - as soon as you run a business, you are obliged to file it correctly.
The standard deadline, for both sole proprietorships and companies, is 31 May each year, and it covers the previous year. For example: 31 May 2021 was the deadline for filing the business return for 2020. NOTE: Filing the business return is not the same as filing the return for the owner or employee. The board of an AS, the owner of a sole proprietorship and employees submit their personal tax return by 30 April for the previous year.
ADDITIONALLY FOR AS COMPANIES:
- By 31 July we must submit the annual årsregnskap, that is, a report containing an overview of the financial events of the year and publicly presenting the company's financial position. It is mandatory and failure to submit it carries heavy penalties, just like the other returns.
- By 31 January each year we must submit the shareholders' return. It shows the current distribution of shares in the company as well as dividends paid and other business events in the company.
WHAT SHOULD YOU REMEMBER?
In addition to annual returns, there are a few more obligations:
- Once revenue exceeds 50.000 NOK, we are obliged to register for MVA, that is, the VAT register. From that point on, every invoice issued by us after registration should be fully VAT taxable. We should register even before reaching the threshold if we know that the next invoice will take us over it. We can help you with the registration - just order the service here.
You should then submit the prepared MVA report to the tax office once every two months.
Registration does not apply to MVA-exempt services, including medical, educational or artistic services. - Once revenue exceeds 50.000 NOK, we are obliged to keep full accounts in accordance with Norwegian law. This is necessary for the correct annual return, for paying the correct taxes and simply for operating the business legally. It is not enough to store documents; they must be entered into accounts yourself in a special programme such as efirma.no or handed over to an authorised accountant, for example me at efirmaregnskap.no. Without bookkeeping you risk refusal of benefits from NAV, and in the event of an inspection - a possible penalty from US and an order to enter the overdue business documents into the accounts.
- For your services or goods you must ALWAYS issue receipts or invoices. Without them it will not be possible to record the transaction, which means the goods or services will be sold illegally, and this may result in a penalty. For invoices I recommend e-faktury.no - a Polish invoicing programme.
- Collect all business documents, paying particular attention to receipts and invoices that count as business expenses. This will help with proper tax optimisation, so that you will pay lower taxes. In Norway, card-paid receipts are sufficient accounting evidence, whereas cash payments can be problematic because the transaction cannot be verified.
- Familiarise yourself with the special requirements for your industry. Each one may have different requirements, so it is best if you look into them yourself. We can also help you with this - please contact us on tel. +47 21 38 38 21. We answer Mon-Fri 9-21
- If you want to employ staff, remember the additional obligations as well. In this matter we also invite you to consult us on the above telephone number - we will advise and help you determine the right steps.
To calculate the cost of an employee and still make a profit, you must invoice their worked hours at a minimum of 150% of their gross rate. So if you offer an employee a gross rate of 200kr/h, you should charge at least 300kr/h on the invoice.
Summary
Above all, remember the 50.000kr revenue threshold and the obligations that apply once it is exceeded, namely MVA registration and bookkeeping. Below you will also find a table with the most important dates to remember.
Obligation
Deadline
Business return ENK and AS
31 May
Personal return
30 April
årsregnskap return
31 July
Shareholders' return
31 January