In today’s blog, we take a closer look at the process steps for a notification under the EU Posted 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 that want to provide a service in Norway. IAC Unternehmensberatung is happy to support its clients in these time-consuming, bureaucratic steps and coordinates all work steps for you.
When a company based outside the Norwegian borders provides services or sells products in Norway and posts employees to deliver or execute the services, several reporting obligations may arise. Some of these are mandatory for the client and some are mandatory for the contractor. In order to comply with these, companies should start planning posting worker tp Norway in a timely manner. The process of meeting 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 may be subject to heavy fines and sanctions, as they are in breach of applicable Norwegian law and are engaging in undeclared work.
Every company that does business in Norway is obliged 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 formation of a permanent establishment 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 duty of the client, regardless of whether it is a trader or a public body, to report the assignment 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).
Furthermore, the notification form asks for an authorised person for service. This is a person living in Norway who receives documents and/or passes on notices and forwards documents on behalf of the employer/host company.
The employer sending German employees to Norway is obliged to comply with the terms and conditions of work/wage and employment provided for by law, such as working and rest times, work organisation, work duration limits, overtime, Sunday work, night work and work on public holidays, minimum wage rates and safety, health and hygiene at work. If incorrect information has been provided or if assignments are not reported at all, this may result in fees or fines.
We hope you found this information on business registration and service provision helpful. If you need any assistance, please do not hesitate to contact us. Our experts will advise you holistic and comprehensively.
