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Set Up a Cryptocurrency Company in Norway

Set Up a Cryptocurrency Company in Norway

Since the apparition of the bitcoin, Norway has been active on the cryptocurrency market. The 25% VAT tax which was at first imposed by the authorities for the BTC gains was removed from 2015, a measure which aligned the Norwegian cryptocurrency market to the EU regulations. If you are interested to set up a cryptocurrency company in Norway or to bring your business in the Fintech area, you can rely on our specialists in company formation in this Norway, who can familiarize you with the registration procedures in this country. There is no need for a crypto license in Norway at the moment, so if you want to start a business in this sector, you can benefit from a simple procedure.

Steps to open a cryptocurrency company in Norway

The creation of a crypto business in Norway must follow the same steps as when opening any other type of company, namely:

  1. choosing a legal structure and reserving a trading name;
  2. registering the legal form with the Norwegian Trade Register;
  3. applying for a tax identification number.

Following the Company Law, a crypto company must register in Norway if:

  • – it will operate from Norway;
  • – its services or products are provided, respectively sold on the Norwegian market.

Even if the company will not need to apply for a crypto license in Norway, it is important to note that this has mainly to do with the type of virtual coin created and its use. Our local specialists can offer more information on how digital money can be used.

Legislation on cryptocurrency-related operations in Norway

Like other countries, Norway has not determined a specific law for cryptocurrency and blockchain technology at this point. However, there are international laws and EU directives related to the use of financial instruments (one of the uses of cryptocurrencies) that can be transposed into the national legislation.

In terms of laws, the particularity of Norway is that it is not a member of the European Union, however, it is a member of the European Economic Area (EEA) which means the following:

  • – Norway cannot transpose EU directives in its national laws;
  • – Norway has entered the EEA Agreement and through it, it is linked to the EU market and its policies.

At a national level, cryptocurrencies in Norway are linked to the:

  • – the Securities Trading Law;
  • – the Anti-Money Laundering Law;
  • – the Financial Undertakings Law.

Cryptocurrencies fall under the incidence of these laws as long as they are treated as investment and utility tokens.

If you decide to launch a cryptocurrency business in Norway, do not hesitate to request the assistance of our agents who will guide through the legal requirements.

The cryptocurrency environment in Norway

Norway is one of the most advanced economies in Europe and a country with a high technological level. With a vibrant Fintech sector, new companies which are set up by foreign investors in the area of cryptocurrencies find in this country a welcoming environment in which to implement their business strategies. 

Some of the actions implied in the cryptocurrency transactions in Norway can be employed by companies without a special license, however more complex Fintech procedures and services can be performed by local businesses only in base of an authorization which can be obtained from the Data Protection Authority.

Cryptocurrency is a new field with many gain opportunities and our experts in company registration in Norway can help you with information in order to speed up your accommodation in the Norwegian market. 

Our specialists can also help you apply for a VAT number in Norway. You can also rely on us for additional services like VAT registration in Norway. If you’re a foreign businessperson, you can make use of our tax representation services to stay up to date on any changes to tax or accounting laws. For help with a variety of business challenges, get in touch with our professionals.

Company formation requirements for a cryptocurrency business in Norway

In order to set up a cryptocurrency company in Norway you will need to register your legal structure with the local business register. Our specialists in company formation in Norway can help you prepare the required documentation comprising papers which can prove your identity as well as the articles of association of the enterprise. 

In Norway you will find suitably trained work force, capable to respond to the needs of one of the most modern areas of the financial sector. Moreover the governmental support for new investments in the field of cryptocurrency represents a plus of motivation for investors who intend to open a company in Norway.  

Registration with the Financial Supervisory Authority

Even if your company will not need a crypto license in Norway, it still needs to register with the Financial Supervisory Authority under the following circumstances:

  1. it offers clients the possibility of trading or buying cryptocurrencies (it acts as an exchange trading platform);
  2. it offers clients the possibility to exchange different types of virtual tokens between them;
  3. it acts as an interface between virtual token sellers and buyers;
  4. it stores crypto keys on behalf of clients for various purposes, such as trading or sale.
  5. If you decide to open a company in Norway that deals in cryptocurrencies, you can rely on our company registration advisors for information on the registration with the Financial Supervisory Authority.

Even if the authority will not issue a specific crypto license for the Norwegian company, through registration it will be able to monitor the activities of such platforms.

Taxation of cryptocurrencies in Norway

From a taxation point of view, the Norwegian tax authorities do not consider virtual tokens as regular currency, therefore they are considered capital gains. In this case, those holding them will pay the capital gains levy at a rate of 22%.

According to data gathered by the Norwegian tax authorities:

  • – at the level of 2019, there 70,000 Norwegian citizens and residents who owned cryptocurrencies;
  • – based on the tax returns filed, fewer than 5,000 people reported their balances in terms of cryptocurrencies traded.

You can obtain more information on the taxes to be paid if you own virtual tokens, you can discuss with our accountants. 

Foreign businesses who offer electronic services to Norwegian clients can benefit from the simplified procedure related to VAT registration in Norway. This implies a single interaction with the tax office in place of a regular tax registration and an additional step for obtaining a local VAT number. If you are interested in this procedure, do not hesitate to get in touch with us.

Don’t hesitate to contact our consultants in company registration in Norway for more information on the local structure and local opportunities for investors in the cryptocurrency sector. Feel free to ask our agents about the latest news on the crypto license in Norway.