Norway has set up a specific procedure for the deployment of service providers and their notifications. In today’s blog, we take a closer look at the process steps involved in a notification under the EU Posting of Workers Directive in Norway.
Before an EU registration can be carried out in Norway, companies are obliged to carry out defined process steps. This process is indispensable for all EU companies wishing to provide a service in Norway. IAC Unternehmensberatung is happy to assist its clients with these time-consuming administrative steps and to coordinate all stages of the process for them.
If a company based outside the Norwegian borders provides services in Norway or sells products in Norway and sends employees for this purpose, several reporting obligations may arise. Some of these are mandatory for the client and some are mandatory for the contractor. In order to fulfil these in time, companies should start planning early. The process to comply with these obligations for the first time in Norway can take up to 8 weeks. If companies and their employees do not comply with these obligations, they face heavy fines and sanctions, as they are in breach of applicable Norwegian law and are engaged in illegal work.
Every company that engages in economic activity in Norway is required to register with the Norwegian Central Trade Register in Brønnøysund (“Brønnøysundregister”). Registration is independent of the place and duration of the operation or the amount of the expected turnover. The registration is not a company formation in the strict sense, but merely the registration of a dependent branch (NUF (norskregistrert utenlandsk foretak)).
The result of this registration is the allocation of the 9-digit organisation number (Norwegian organisation number), which serves as identification vis-à-vis the Norwegian authorities. Without this organisation number, no business activities are possible in Norway. Such an organisation number is also necessary for companies that only send or assign employees to Norway. In addition, registration in the “Foretaksregister” (Business Register) may be required for a fee. However, this obligation must be clarified with the competent authorities in each individual case. VAT registration with the Norwegian tax office may also be required. These parameters must be checked before the assignment begins and, if applicable, carried out.
It is the customer’s duty, regardless of whether this is a trader or a public body, to report the order using form RF-1199. This obligation is towards the Norwegian Central Office for Foreign Tax Affairs (COFTA). The foreign contractor has the obligation to provide information about the employees used.
All contracts awarded to a foreign contractor on land or at sea must be entered in the contract and employee register. In addition, there may be other obligations, e.g. to withhold taxes from the employee’s salary and/or to comply with other regulations under the Norwegian Employment Act, etc.
The employer is obliged to name the representative of the home company in the form. He or she represents the foreign employer to third parties, e.g. director, authorised signatory.
In addition, a contact person must be named who will keep important documents during the assignment. This person is responsible for cooperating with the authorities and for keeping documents in paper or electronic form or making them accessible (copies). We will be happy to support you here with our network.
The registration form also asks for an authorised representative. This is a person living in Norway who receives documents and/or passes on notifications and forwards documents on behalf of the employer/host company.
The employer who sends German employees to Norway is obliged to comply with the terms and conditions of work/wages and employment provided for by law. These include, for example, working and rest times, work organisation, work duration limits, overtime, Sunday work, night work and work on public holidays, minimum wage rates as well as safety, health and hygiene at the workplace. If incorrect information has been provided or if assignments are not reported at all, this may result in fees or fines.
Please take note of these special regulations when providing services in Norway. If you need assistance, please do not hesitate to contact us. Our experts will advise you quickly and comprehensively.
Do you need support with reporting and registration for your business trips within Europe? IAC Unternehmensberatung is your partner when it comes to reporting and registration obligations in the EU!
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