When is it worth setting up a NUF in Norway?

Are you planning to expand your operations with a business presence in Norway and wondering which structure makes the most sense? Choosing between a NUF (Norwegian-registered foreign enterprise), an ENK (sole proprietorship) and an AS (limited company) can have a major impact on how you run your business—costs, compliance, taxation and overall risk.

Each option comes with different obligations, fees and potential tax outcomes. In this article, we explain when a NUF is worth considering and when it’s usually better to register a local Norwegian business instead. That way, you can more easily choose the structure that fits your goals and your situation.

NUF – what is it?

NUF stands for norskregistrert utenlandsk foretak, which is essentially a Norwegian branch of a company registered in another country. In practice, it means you operate in Norway through a branch, while the main entity is registered abroad.

A NUF branch is subject to Norwegian rules (largely similar to those that apply to Norwegian AS companies), but the foreign parent company is directly responsible for the branch’s obligations and activities. Unlike a Norwegian AS, a NUF does not require any minimum share capital at the time of registration.

Any foreign business that intends to carry out commercial activity in Norway—whether for a short contract or on a long-term basis—must obtain a Norwegian organisation number. This can be done either by registering a NUF branch or by establishing a separate Norwegian company.

When is a NUF a good option?

A NUF branch is typically recommended for businesses that already have an established company abroad and want to expand into Norway without creating a brand-new legal entity. For example, if a Polish company plans to deliver a project or a series of contracts in Norway, it may register a NUF in order to operate as the same legal entity in the Norwegian market. This keeps responsibility on the parent company and can simplify internal management—Norwegian operations become an integrated part of the foreign company.

This structure can be useful if you want to maintain one unified company structure internationally—for instance, profits generated in Norway belong directly to the parent company (no need to declare dividends from a separate Norwegian company). A NUF can also work well for temporary projects, where you expect to operate in Norway for a limited time and would rather avoid establishing—and later liquidating—a full Norwegian company.

It’s also worth noting that Norwegian law does not impose strict limits on the legal form of the foreign parent company. A NUF can be registered by a limited company, a large corporation, a partnership, or even a sole proprietorship operating abroad.

For larger companies, there can be a tax-related advantage as well: if the company’s main seat and management remain abroad, Norway generally taxes only the income attributable to the branch’s activity in Norway. In other words, the Norwegian tax authority will tax profits generated in Norway, while the rest of the parent company’s operations are taxed in the home country (in line with local rules and applicable double-tax treaties). This can be beneficial for businesses operating across multiple countries—the Norwegian branch works locally while remaining financially part of the parent company.

When is ENK or AS a better choice than NUF?

Despite these advantages, a NUF is not always the best choice, especially for small business owners and people starting from scratch in Norway. If you don’t already run a substantial business abroad and simply want to start a business in Norway (for example, as a Pole moving to Norway), it is usually more practical to register a local ENK or establish an AS.

For individuals operating on a smaller scale, ENK (sole proprietorship) is often the simplest option: fast registration, no capital requirements and minimal formalities. The downside is that the owner has unlimited personal liability—but a similar situation can apply to a NUF if the foreign parent is a sole proprietorship. In that case, you still carry unlimited personal liability, and setting up a NUF does not provide extra legal protection—it may only complicate the structure (operating in two countries).

A Norwegian AS is comparable to a limited liability company: it separates company assets from private assets (liability is limited to the company’s capital), and it also allows the owner to be employed by their own company. The minimum share capital is currently 30,000 NOK.

In practice, if you don’t need a single international structure and you want strong credibility in Norway, it is often better to set up a local AS from the start. AS is widely recognised in Norway, and clients, banks and investors typically trust an AS more than a foreign branch without share capital. Running an AS also keeps you within one legal and tax system, which makes many things easier (and avoids juggling rules from two countries at the same time).

The NUF registration process in Norway

To register a NUF branch, you must submit it to the Brønnøysund Register Centre (Brønnøysundregistrene). In practice, this is done through a coordinated registration form (Samordnet registermelding) for a foreign enterprise with a Norwegian branch.

At the moment, NUF registration is often less automated than the registration of Norwegian companies. It may require filling out a paper form (available on Brønnøysundregistrene’s website) and sending it by post, or submitting scanned documents through a dedicated contact form. You must attach documentation proving that the parent company exists—for example, an extract from the foreign business register (such as Poland’s KRS), translated into Norwegian or English, as well as the parent company’s articles/constitution and any relevant powers of attorney.

If individuals registering the NUF (or holding formal roles, such as branch signatories) do not have a Norwegian personal number, they must also apply for a temporary D-number. The D-number application can be included with the registration documents.

The branch name is typically the parent company’s name with “NUF” added. If the foreign enterprise registers its branch in the Norwegian Register of Business Enterprises (Foretaksregisteret), the branch is expected to use the official parent company name followed by “NUF”. For example, if a Polish company “XYZ sp. z o.o.” opens a branch, the Norwegian name might be “XYZ Sp. z o.o. NUF”.

NUF registration is subject to official fees, similar to company registration. As of 03.09.2025, the fees are:

registration in the Central Coordinating Register (Enhetsregisteret) only: 3,378 NOK
full registration in the Register of Business Enterprises (Foretaksregisteret): 3,925 NOK

Because foreign enterprises operating in Norway are generally required to register in both registers, most NUF branches pay 3,925 NOK in practice.

For comparison, registering a new Norwegian AS online costs 6,500 NOK (7,653 NOK on paper). So in terms of fees, NUF is cheaper to set up.

Processing times at Brønnøysundregistrene depend on workload and are usually between one and several weeks. After registration, the branch receives a unique organisation number (organisasjonsnummer).

Legal and tax obligations for a NUF

When you register a NUF, you should be aware that operating a branch in Norway is regulated much like operating a Norwegian business.

First, a NUF branch with taxable activity in Norway generally must keep full accounts in accordance with Norwegian rules and submit annual financial statements to the Accounting Register (Regnskapsregisteret). Even though the branch is not a separate company, if it generates taxable income in Norway it may still be required to prepare and file annual reports (balance sheet, profit and loss statement, etc.) similar to an AS.

Larger branches may also be subject to audit requirements—if annual turnover exceeds 7 million NOK, an auditor may be required to review the annual accounts. In practice, these thresholds are similar to those applied to AS companies.

Tax-wise, as mentioned above, a NUF branch generally reports and pays tax in Norway on income attributable to activity in Norway. Norway’s corporate income tax rate is currently 22%, and that is typically the tax applied to profits generated by the Norwegian branch (assuming the parent company is a corporate entity). Corporate tax is usually paid in two equal instalments in the year following the tax year (by 15 February and 15 April). Tax reporting is done by submitting the annual tax return (skattemelding) to the Norwegian Tax Administration (Skatteetaten), with the standard deadline being 31 May for the previous year.

It’s also worth noting that if the foreign parent company is a limited liability entity comparable to a Norwegian AS, taxation in Norway often ends at the 22% profit level—internal transfers to the parent company are generally not subject to additional Norwegian tax. However, if the branch is owned by an individual (e.g., the parent company is a sole proprietorship), profits may be treated as personal income and taxed progressively—often resulting in a higher overall tax burden.

Hiring employees in a NUF branch follows the same rules as in Norwegian companies. Employees in Norway are entitled to full Norwegian social benefits, including 100% sick pay from day one (the employer covers the first 16 days, NAV from day 17), unemployment benefits in case of job loss, and pension accrual based on salary. The branch must also handle payroll tax withholding, employer social security contributions, monthly reporting (a-melding), and other obligations—just like a local employer.

As for VAT, a NUF is treated the same as a Norwegian business. The branch must register for VAT (Merverdiavgiftsregisteret) once VAT-liable turnover exceeds 50,000 NOK within a rolling 12-month period. Businesses from the EU/EEA (including Poland) can normally register for Norwegian VAT without appointing a local VAT representative. After registration, the branch submits VAT returns (usually every two months) and pays or claims VAT according to the standard rules.

NUF pros and cons – quick overview

Advantages of NUF

No minimum share capital
You don’t need to contribute a minimum share capital amount (unlike AS, which requires at least 30,000 NOK). This lowers the barrier to entry and reduces startup costs.
Lower registration fees
Registration in the Register of Business Enterprises costs 3,925 NOK, while registering an AS online costs 6,500 NOK.
One unified company structure
A NUF allows you to operate in Norway under the same legal entity as abroad. Contracts, assets and profits belong directly to the parent company, which can simplify management—especially for businesses active in several countries.
Avoiding double taxation of global profits
Norway generally taxes only the income generated by the branch in Norway, while the rest remains taxed in the home country. Double-tax treaties help ensure the same profits aren’t taxed twice.
Easier exit from the Norwegian market
If a project ends or the business doesn’t work out, closing a branch is often simpler than liquidating a Norwegian company. You deregister the branch in Norway while the parent company continues operating abroad.

Disadvantages and limitations of NUF

Two sets of rules and more administration
A NUF often means compliance in both Norway and the home country—potentially more accounting, reporting and legal complexity. For small businesses, this can be disproportionally burdensome.
Lower credibility in the local market (sometimes)
Some Norwegian partners may view foreign branches as less transparent than local AS companies. Past misuse of NUF structures has also created some scepticism in certain industries. Banks and contractors may be more cautious, especially regarding enforcement of claims against a foreign parent entity.
No automatic limitation of liability
The level of liability protection depends on the legal form of the parent company. If the parent is a limited company, owners benefit from limited liability—but if the parent is a sole proprietorship, the owner may still have unlimited personal liability for the Norwegian branch’s obligations.
More complex registration process
Setting up a NUF can involve paper forms and document submission, while ENK and AS are often fully online via Altinn. This can mean more effort and longer processing time.
Ongoing accounting and compliance costs
While registration is cheaper, operating a NUF can involve higher costs due to bookkeeping, reporting, translations, and potentially audit requirements. For a small business, this may be heavier than running a simple ENK.

Summary

Setting up a NUF in Norway can be a strong option for medium-sized and larger businesses that want to enter the Norwegian market while keeping their existing legal and financial structure. A foreign branch can make it easier to operate under one entity, avoid double taxation of global profits, and close operations in Norway more smoothly after a project ends. However, it also comes with significant compliance requirements, Norwegian accounting and reporting obligations, and in some cases lower trust from local counterparts.

For people who are just starting a business in Norway, ENK or AS is often a better choice. These forms are easier to register, better recognised in the market, and typically provide more transparency when dealing with Norwegian clients, banks and authorities. Ultimately, the right choice depends on your situation: if you already run an established business in Poland or another EEA country, consider NUF; if you’re building a business from scratch in Norway, choose ENK or AS.

Before deciding, it’s a good idea to speak with an accountant to match the structure to your plans, business scale and tax considerations. A well-chosen legal form is a solid foundation for growing a successful business in Norway.

Are you thinking about moving a Polish business to Norway—or simply opening a company here? Contact us at
+47 21 38 38 21.
We’re available Monday to Friday, 9:00 AM–9:00 PM, and we’ll be happy to help!

Article author: Marcin – marcin@efirma.no