There is no specific legislation applicable to holding companies in Norway, however, such enterprises can be established under the local Company Act. It is possible for both local and foreign investors to set up such entities here.
Below, our Norwegian company formation specialists explain the requirements to open a holding company and its advantages. You can rely on us for support with its registration.
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How to set up a holding company in Norway?
There are two ways of opening a holding company in Norway:
1.Private Limited Liability Company (Aksjeloven – AS)
2.Public Limited Liability Company (Allmennaksjeselskap – ASA)
ASA is intended for larger businesses and may (but does not have to be listed) on a stock exchange. Whereas, AS is an often-used vehicle for small and medium-sized businesses. For further details, please refer to our page on types of Norwegian companies. Our specialists in company formation in Norway can assist you in setting up a holding company.
If you want to open a company in Norway, you can rely on our local specialists. We offer support in drafting the necessary paperwork, as well as filing it with the Companies Register. We can also assist in other matters, such as tax registration and obtaining various business licenses in accordance with the type of activity to conduct.
Documents required to open a holding company in Norway
The documents to prepare when setting up a Norwegian holding company are the same no matter the legal entity chosen, as follows:
- the Memorandum and Articles of Association;
- a declaration from an auditor, accountant, a lawyer, or bank that the shareholder(s) paid the capital contribution (only if the contribution was made in cash);
- details of the local registered address;
- information about the shareholder.
Our local specialists can assist with the drafting of the necessary documents if you want to open a company in Norway for holding purposes.
Special characteristics of holdings in Norway
Even if registered as any other type of company, the holding has specific features its owner(s) must be aware of. Here are the most important:
- holding companies do engage in commercial operations themselves;
- they will only control the subsidiary they own;
- it is possible for a holding to own more than one subsidiary;
- holdings can own various assets in their subsidiaries;
- they have limited liability for the contributions made to subsidiaries, which makes them great financial protection tools.
Our company registration consultants in Norway can offer more information about the benefits of holdings.
Types of holdings companies in Norway
There are several types of holding companies that can operate in Norway, as follows:
- pure holdings that can be created with the purpose of owning and administering the assets they own in their subsidiaries;
- mixed holdings that can be created for owning assets in subsidiaries, as well as carrying out other activities;
- immediate holdings that can own and control subsidiary companies;
- intermediate holdings that are part of company groups.
In this latter case, the holding company must register with the Financial Supervisory Authority of Norway and obtain a license. For specialized legal assistance in Norway, we collaborate with a reputable law firm in Norway that can help foreign investors in several legal matters, including obtaining the license for your holding company.
Taxation of holding companies explained by our experts in company registration in Norway
There is no special tax regime for holding companies in Norway.
Here are the main aspects to consider when it comes to the taxes paid by holding companies in Norway:
- the standard corporate tax is 22%;
- when engaged in financial activities, holdings will pay a corporate tax of 25%;
- the withholding dividend tax on qualifying shares is set at 0.66%;
- however, if the holding owns more than 90% of the shares in a foreign company, it will benefit from a 0% tax on qualifying dividends;
- when receiving dividends from companies outside the EEA, the holding must be at least 10% in the respective subsidiary for more than 2 years to benefit from the same exemption.
Holding companies in Norway enjoy the benefits under various treaties and agreements that are in place. Similar VAT rules apply to local enterprises and foreign companies that conduct business in Norway. Obtaining VAT numbers is a mandatory requirement for any of them. Contact our agents if you run a foreign business and require assistance with VAT registration in Norway. You can rely on us for other accounting services.
Dividends on shares from subsidiaries in EEA countries are exempt or 97% exempt from taxation, whereas dividends from subsidiaries in non-EEA countries are either 97% exempt or fully taxable. Gain from the sale of a subsidiary in EEA countries is generally exempt from taxation. For the sale of a non-EEA subsidiary, the gain is exempt or taxable, depending on the jurisdiction, percentage shareholding, and period held.
Why open a holding company in Norway?
A holding company is a parent company that holds the shares and has control of its subsidiary companies. A holding company is often used as an investment vehicle and risk management tool. There are a number of merits of opening a holding company in Norway. In terms of a Norwegian holding company formation, there is no restriction on its activities, nor is any capital duty payable. Furthermore, Norway has a wide network of treaties with over 80 countries, which eliminates double taxation and reduces withholding tax on dividends, interest, and royalties.
Though not a member of the EU, Norwegian holding companies have equal opportunities and benefits as those in EU states because Norway is part of the Internal Market under the EEA agreement. By virtue of these treaties and agreements, there is no withholding tax on dividends and interests paid to EU/ EAA subsidiaries.
For details about the taxation of holding companies, please contact our Norwegian experts in company formation.