Norway
Norway has the fourth-highest per-capita income in the world on the World Bank and IMF lists. On the CIA's GDP (PPP) per capita list which includes autonomous territories and regions, Norway ranks as number eleven. It has the world's largest sovereign wealth fund, with a value of US$1 trillion. Norway has had the highest Human Development Index ranking in the world since 2009. Norway ranked first on the World Happiness Report for 2017 and currently ranks first on the OECD Better Life Index, the Index of Public Integrity, the Freedom Index, and the Democracy Index. Norway also has one of the lowest crime rates in the world.
The country maintains close ties with both the European Union and the United States. Norway is also a founding member of the United Nations, NATO, the European Free Trade Association, the Council of Europe, the Antarctic Treaty, and the Nordic Council; a member of the European Economic Area, the WTO, and the OECD; and a part of the Schengen Area. In addition, the Norwegian languages share mutual intelligibility with Danish and Swedish.
Norway maintains the Nordic welfare model with universal health care and a comprehensive social security system, and its values are rooted in egalitarian ideals. The Norwegian state has large ownership positions in key industrial sectors, having extensive reserves of petroleum, natural gas, minerals, lumber, seafood, and fresh water. The petroleum industry accounts for around a quarter of the country's gross domestic product (GDP). On a per-capita basis, Norway is the world's largest producer of oil and natural gas outside of the Middle East.
Norwegians enjoy the second-highest GDP per-capita among European countries (after Luxembourg), and the sixth-highest GDP (PPP) per-capita in the world. Today, Norway ranks as the second-wealthiest country in the world in monetary value, with the largest capital reserve per capita of any nation. According to the CIA World Factbook, Norway is a net external creditor of debt. The standard of living in Norway is among the highest in the world.
The Norwegian economy is an example of a mixed economy; a prosperous capitalist welfare state it features a combination of free market activity and large state ownership in certain key sectors, influenced by both liberal governments from the late 19th century and later by social democratic governments in the postwar era. Public health care in Norway is free (after an annual charge of around 2000 kroner for those over 16), and parents have 46 weeks paid parental leave. The state income derived from natural resources includes a significant contribution from petroleum production.
The state has large ownership positions in key industrial sectors, such as the strategic petroleum sector (Statoil), hydroelectric energy production (Statkraft), aluminium production (Norsk Hydro), the largest Norwegian bank (DNB), and telecommunication provider (Telenor). Through these big companies, the government controls approximately 30% of the stock values at the Oslo Stock Exchange. When non-listed companies are included, the state has even higher share in ownership (mainly from direct oil licence ownership). Norway is a major shipping nation and has the world's sixth largest merchant fleet, with 1,412 Norwegian-owned merchant vessels.
By referendums in 1972 and 1994, Norwegians rejected proposals to join the European Union (EU). However, Norway, together with Iceland and Liechtenstein, participates in the European Union's single market through the European Economic Area (EEA) agreement. The EEA Treaty between the European Union countries and the EFTA countries—transposed into Norwegian law via "EØS-loven"—describes the procedures for implementing European Union rules in Norway and the other EFTA countries. Norway is a highly integrated member of most sectors of the EU internal market. Some sectors, such as agriculture, oil and fish, are not wholly covered by the EEA Treaty. Norway has also acceded to the Schengen Agreement and several other intergovernmental agreements among the EU member states.
The country is richly endowed with natural resources including petroleum, hydropower, fish, forests, and minerals. Large reserves of petroleum and natural gas were discovered in the 1960s, which led to a boom in the economy. Norway has obtained one of the highest standards of living in the world in part by having a large amount of natural resources compared to the size of the population. In 2011, 28% of state revenues were generated from the petroleum industry.
Norway is the first country which banned cutting of trees (deforestation), in order to prevent rain forests from vanishing.
Banks in Norway comprise 17 commercial banks, 105 savings banks, and a small number of state-owned banks. The Financial Supervisory Authority of Norway oversees all financial institutions in the country. There are three types of banks in Norway: commercial banks (also known as business banks), savings banks, branches of foreign banks.
Corporations and individuals domiciled in Norway are subject to Norwegian tax liability on their worldwide income. Individuals who reside in Norway for more than 183 days in any 12-month period, or more than 270 days in any 36-month period, are considered to be tax domiciled here, even though the residence may be of a temporary nature. Ordinary partnerships and limited partnerships are not taxable entities since such as the participants in the partnership are the taxable subjects.
A Norwegian subsidiary, through which a foreign company has organized their activity, is liable to taxation in Norway like any other Norwegian company. Other foreign companies operating in Norway and on the Norwegian continental shelf are liable to Norwegian tax, provided they are engaged in a «business activity» here. In order to avoid double taxation these main rules are modified through a significant number of tax treaties.
The Norwegian government encourages foreign investment, particularly in the oil sector, in mainland industry and in the underdeveloped northern regions. Norway's investment regime is generally based on the equal treatment of foreign investors and nationals. However, certain sectors are excluded from foreign investment – fisheries, maritime transport and government-owned enterprises such as the Norwegian postal service and railway (though foreign companies are allowed to take part in certain air express and cargo services). Foreign investment in hydropower is also limited to 20% of equity and requires approval from the government. Norway has fully opened the electricity distribution system to foreign investment, making it one of the most liberal power sectors globally. As a signatory to the EEA free trade accord, Norway continues to liberalise its foreign investment legislation to conform more closely to EU standards. Norway has also implemented EU legislation on public procurements and is a signatory to the World Trade Organisation (WTO) Procurement Agreement which requires internationally recognized and transparent procedures for public procurements above a certain level.
The market in Norway for foreign investment is enhanced by:
• Long-term political stability
• Long-term economic stability
• Low inflation
• A well-educated workforce
• High productivity
• Well-developed infrastructure.
A non-resident may do business in Norway either by setting up a branch of an organization formed under the laws of another country or by setting up one of several types of organizations recognized by Norwegian law. In addition, a non-resident may do business in Norway by exporting to Norway, entering into a license agreement with a Norwegian company or operating in the country without a permanent establishment.
The most common forms of commercial organizations available for foreigners and foreign companies under Norwegian law are a branch of a foreign corporation or a subsidiary, usually as a limited liability company (sometimes referred to as a joint stock company).
Other forms of commercial organization are:
1. personal proprietorship or sole trader;
2. general partnership (normally referred to as
a private company);
3. silent partnership; and
4. limited partnership
Norway has several laws that protect intellectual property rights, including the Copyright Act, the Trademarks Act and the Designs Act.
Norway uses a civil law system where laws are created and amended in Parliament and the system regulated through the Courts of justice of Norway. It consists of the Supreme Court of 20 permanent judges and a Chief Justice, appellate courts, city and district courts, and conciliation councils. The judiciary is independent of executive and legislative branches.
The Courts' strict and formal mission is to regulate the Norwegian judicial system, interpret the Constitution, and as such implement the legislation adopted by Parliament. In its judicial reviews, it monitors the legislative and executive branches to ensure that they comply with provisions of enacted legislation.
In general, the legal and institutional framework in Norway is characterised by a high degree of transparency, accountability and integrity, and the perception and the occurrence of corruption are very low. Norway has ratified all relevant international anti-corruption conventions, and its standards of implementation and enforcement of anti-corruption legislation are considered very high by many international anti-corruption working groups such as the OECD Anti-Bribery Working Group.
Our law firm VLO provides legal services for corporate and private clients in Norway. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
The country maintains close ties with both the European Union and the United States. Norway is also a founding member of the United Nations, NATO, the European Free Trade Association, the Council of Europe, the Antarctic Treaty, and the Nordic Council; a member of the European Economic Area, the WTO, and the OECD; and a part of the Schengen Area. In addition, the Norwegian languages share mutual intelligibility with Danish and Swedish.
Norway maintains the Nordic welfare model with universal health care and a comprehensive social security system, and its values are rooted in egalitarian ideals. The Norwegian state has large ownership positions in key industrial sectors, having extensive reserves of petroleum, natural gas, minerals, lumber, seafood, and fresh water. The petroleum industry accounts for around a quarter of the country's gross domestic product (GDP). On a per-capita basis, Norway is the world's largest producer of oil and natural gas outside of the Middle East.
Norwegians enjoy the second-highest GDP per-capita among European countries (after Luxembourg), and the sixth-highest GDP (PPP) per-capita in the world. Today, Norway ranks as the second-wealthiest country in the world in monetary value, with the largest capital reserve per capita of any nation. According to the CIA World Factbook, Norway is a net external creditor of debt. The standard of living in Norway is among the highest in the world.
The Norwegian economy is an example of a mixed economy; a prosperous capitalist welfare state it features a combination of free market activity and large state ownership in certain key sectors, influenced by both liberal governments from the late 19th century and later by social democratic governments in the postwar era. Public health care in Norway is free (after an annual charge of around 2000 kroner for those over 16), and parents have 46 weeks paid parental leave. The state income derived from natural resources includes a significant contribution from petroleum production.
The state has large ownership positions in key industrial sectors, such as the strategic petroleum sector (Statoil), hydroelectric energy production (Statkraft), aluminium production (Norsk Hydro), the largest Norwegian bank (DNB), and telecommunication provider (Telenor). Through these big companies, the government controls approximately 30% of the stock values at the Oslo Stock Exchange. When non-listed companies are included, the state has even higher share in ownership (mainly from direct oil licence ownership). Norway is a major shipping nation and has the world's sixth largest merchant fleet, with 1,412 Norwegian-owned merchant vessels.
By referendums in 1972 and 1994, Norwegians rejected proposals to join the European Union (EU). However, Norway, together with Iceland and Liechtenstein, participates in the European Union's single market through the European Economic Area (EEA) agreement. The EEA Treaty between the European Union countries and the EFTA countries—transposed into Norwegian law via "EØS-loven"—describes the procedures for implementing European Union rules in Norway and the other EFTA countries. Norway is a highly integrated member of most sectors of the EU internal market. Some sectors, such as agriculture, oil and fish, are not wholly covered by the EEA Treaty. Norway has also acceded to the Schengen Agreement and several other intergovernmental agreements among the EU member states.
The country is richly endowed with natural resources including petroleum, hydropower, fish, forests, and minerals. Large reserves of petroleum and natural gas were discovered in the 1960s, which led to a boom in the economy. Norway has obtained one of the highest standards of living in the world in part by having a large amount of natural resources compared to the size of the population. In 2011, 28% of state revenues were generated from the petroleum industry.
Norway is the first country which banned cutting of trees (deforestation), in order to prevent rain forests from vanishing.
Banks in Norway comprise 17 commercial banks, 105 savings banks, and a small number of state-owned banks. The Financial Supervisory Authority of Norway oversees all financial institutions in the country. There are three types of banks in Norway: commercial banks (also known as business banks), savings banks, branches of foreign banks.
Corporations and individuals domiciled in Norway are subject to Norwegian tax liability on their worldwide income. Individuals who reside in Norway for more than 183 days in any 12-month period, or more than 270 days in any 36-month period, are considered to be tax domiciled here, even though the residence may be of a temporary nature. Ordinary partnerships and limited partnerships are not taxable entities since such as the participants in the partnership are the taxable subjects.
A Norwegian subsidiary, through which a foreign company has organized their activity, is liable to taxation in Norway like any other Norwegian company. Other foreign companies operating in Norway and on the Norwegian continental shelf are liable to Norwegian tax, provided they are engaged in a «business activity» here. In order to avoid double taxation these main rules are modified through a significant number of tax treaties.
The Norwegian government encourages foreign investment, particularly in the oil sector, in mainland industry and in the underdeveloped northern regions. Norway's investment regime is generally based on the equal treatment of foreign investors and nationals. However, certain sectors are excluded from foreign investment – fisheries, maritime transport and government-owned enterprises such as the Norwegian postal service and railway (though foreign companies are allowed to take part in certain air express and cargo services). Foreign investment in hydropower is also limited to 20% of equity and requires approval from the government. Norway has fully opened the electricity distribution system to foreign investment, making it one of the most liberal power sectors globally. As a signatory to the EEA free trade accord, Norway continues to liberalise its foreign investment legislation to conform more closely to EU standards. Norway has also implemented EU legislation on public procurements and is a signatory to the World Trade Organisation (WTO) Procurement Agreement which requires internationally recognized and transparent procedures for public procurements above a certain level.
The market in Norway for foreign investment is enhanced by:
• Long-term political stability
• Long-term economic stability
• Low inflation
• A well-educated workforce
• High productivity
• Well-developed infrastructure.
A non-resident may do business in Norway either by setting up a branch of an organization formed under the laws of another country or by setting up one of several types of organizations recognized by Norwegian law. In addition, a non-resident may do business in Norway by exporting to Norway, entering into a license agreement with a Norwegian company or operating in the country without a permanent establishment.
The most common forms of commercial organizations available for foreigners and foreign companies under Norwegian law are a branch of a foreign corporation or a subsidiary, usually as a limited liability company (sometimes referred to as a joint stock company).
Other forms of commercial organization are:
1. personal proprietorship or sole trader;
2. general partnership (normally referred to as
a private company);
3. silent partnership; and
4. limited partnership
Norway has several laws that protect intellectual property rights, including the Copyright Act, the Trademarks Act and the Designs Act.
Norway uses a civil law system where laws are created and amended in Parliament and the system regulated through the Courts of justice of Norway. It consists of the Supreme Court of 20 permanent judges and a Chief Justice, appellate courts, city and district courts, and conciliation councils. The judiciary is independent of executive and legislative branches.
The Courts' strict and formal mission is to regulate the Norwegian judicial system, interpret the Constitution, and as such implement the legislation adopted by Parliament. In its judicial reviews, it monitors the legislative and executive branches to ensure that they comply with provisions of enacted legislation.
In general, the legal and institutional framework in Norway is characterised by a high degree of transparency, accountability and integrity, and the perception and the occurrence of corruption are very low. Norway has ratified all relevant international anti-corruption conventions, and its standards of implementation and enforcement of anti-corruption legislation are considered very high by many international anti-corruption working groups such as the OECD Anti-Bribery Working Group.
Our law firm VLO provides legal services for corporate and private clients in Norway. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
