The Foundations Act is the main law that provides for the creation of foundations in Norway. In this country, such entities can be settled by natural persons and companies alike and are subject to specific registration criteria.
Below, our company formation agents in Norway explain the procedure for opening a foundation. We are also at your service if you want to establish another business form, as well as with VAT registration in Norway.
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Registration requirements for Norwegian foundations
One or more individuals can set up foundations in Norway. Private limited companies or other associations can also be considered the founders of such an entity. The main requirement for natural persons is to have turned at least 18 years old to become settlors.
Norwegian foundations are divided into two forms:
- regular ones, that do not engage in commercial activities;
- foundations established for commercial purposes.
The main difference between them resides in the capital requirements, as such entities need to have a minimum of capital no matter their purpose.
If you want to create a foundation as an NGO (non-governmental organization) for charitable reasons, our local consultants can advise you.
How to register a foundation in Norway
Foundations must be registered with the Norwegian Gambling and Foundations Authority, the organization that also oversees the activities of such entities. In order to create both types of entities, there are various documents to draft. Also, key members must be appointed to the board.
In Norway, you will find that opening an NGO is similar to the company registration procedure in terms of documents unless a special process is used. For the regular pathway, the following documents must be drafted:
- the Memorandum and Articles of Association;
- a statement from an auditor (in the case of commercial NGOs);
- information about the settlers, the board or trustees, and the beneficiaries.
It is also possible to create a foundation by will, which is often the case for those who want to have their assets protected.
If a foundation is established through a will, the testament serves as the foundation’s memorandum of association, and the entity is deemed to have been created at the time of the decedent’s death.
If you decide to establish a foundation in Norway one way or the other, you can rely on our local professionals for guidance in both procedures.
Capital requirements for foundations in Norway
When creating a Norwegian foundation, the most important aspect is its purpose, as the capital requirements depend on it. Here are the main things to consider:
- for an ordinary foundation, the minimum capital that cannot be altered in any way is NOK 100,000 (approx. EUR 9000);
- for a commercial foundation, the minimum capital is NOK 200,000 (around EUR 18,000);
- also, no matter the type of entity, at least one of the board members must be appointed independently from all other participants.
If you need support in settling a foundation, you can rely on our Norwegian company formation officers.
How to create a commercial foundation in Norway
Commercial foundations must meet similar requirements to the establishment of businesses in Norway. They must have local business addresses, as well as meet other similar conditions in terms of documentation. Also, VAT registration in Norway can be required upon reaching the minimum turnover imposed by law.
Also, as a foreigner, if you want to create a foundation and also want to move here, you will need to consider applying for a Norwegian residence permit.
If you need assistance in setting up a foundation in Norway, feel free to get in touch with our specialists.