February 09, 2026
Both structures can be appropriate — but only when chosen consciously and with a full understanding of their consequences.
A NUF is not a separate legal entity. It is a Norwegian branch of a foreign company, registered with the Norwegian authorities.
In practice, this means:
A NUF may be a reasonable solution when:
For carefully defined and temporary activities, a NUF can work — but only with proper planning.
In practice, foreign companies using a NUF often struggle with:
An AS is a separate legal entity established under Norwegian law.
It has its own legal personality, share capital, board of directors and independent responsibilities.
For many foreign companies, an AS represents a clear and structured entry into the Norwegian market.
In practice, an AS is often perceived as:
This is where the role of professional accounting in Norway becomes critical.
A qualified accountant supports foreign companies with:
In Norway, accounting is closely connected to compliance. Errors in structure or reporting often lead not only to financial consequences, but also to reputational damage.
Based on real-life cases, the most common mistakes include:
Before starting operations in Norway, every foreign company should verify:
In the Norwegian market, compliance is not only a legal requirement. It is a matter of business credibility.
Clients, partners, auditors and authorities expect companies to:
Companies that do this well build strong, long-term market positions. Those who underestimate it often struggle.
From practical experience, choosing between NUF and AS is rarely just a formal decision. It reflects how seriously a company treats its presence in Norway.
Companies that invest in structure, compliance and professional accounting from the beginning usually:
What is the difference between NUF and AS in Norway?
A NUF is a branch of a foreign company, while an AS is a separate legal entity under Norwegian law.
Is NUF or AS better for foreign companies in Norway?
NUF may work for short-term presence. AS is usually better for long-term operations and credibility.
Do I need an accountant in Norway?
Yes. Norwegian accounting covers tax, compliance, reporting and legal obligations that require local expertise.
Can I run a business in Norway without registration?
No. Registration and compliance are mandatory before starting operations.
Why is accounting in Norway so strict?
Because accounting is part of the national compliance system, ensuring transparency, tax correctness and trust.
Choosing the right legal structure is one of the most important decisions when entering the Norwegian market.
From daily work with foreign companies operating in Norway, it is clear that this decision affects far more than formal registration. It has direct impact on legal security, credibility toward clients, cooperation with banks and long-term business potential.
From daily work with foreign companies operating in Norway, it is clear that this decision affects far more than formal registration. It has direct impact on legal security, credibility toward clients, cooperation with banks and long-term business potential.
The two most common options for foreign companies are:
- NUF – Norwegian-registered foreign enterprise
- AS – Aksjeselskap, a Norwegian limited liability company
Both structures can be appropriate — but only when chosen consciously and with a full understanding of their consequences.
What is a NUF in Norway?
A NUF is not a separate legal entity. It is a Norwegian branch of a foreign company, registered with the Norwegian authorities.
In practice, this means:
- the foreign parent company remains fully liable for all obligations in Norway
- there is limited legal and financial separation
- credibility toward banks and large Norwegian contractors may be weaker
- the branch is closely linked to the parent company’s structure and risk profile
When can a NUF make sense?
A NUF may be a reasonable solution when:
- activities are limited in scope
- contracts are short-term or project-based
- the company already has strong operational structures abroad
For carefully defined and temporary activities, a NUF can work — but only with proper planning.
Risks of NUF that companies often underestimate
In practice, foreign companies using a NUF often struggle with:
- insufficient understanding of tax obligations
- confusion regarding VAT registration
- limited acceptance by Norwegian clients
- difficulties in establishing banking relationships
- increased legal and financial risk for the parent company
This is why professional guidance from an experienced Noregian accountant is essential already at the planning stage — not after problems arise.
What is an AS (Norwegian limited company)?
An AS is a separate legal entity established under Norwegian law.
It has its own legal personality, share capital, board of directors and independent responsibilities.
For many foreign companies, an AS represents a clear and structured entry into the Norwegian market.
Advantages of an AS for foreign companies
In practice, an AS is often perceived as:
- more credible by Norwegian clients
- more transparent for authorities
- more reliable by banks
- better suited for long-term cooperation
It is therefore common that companies initially operating as a NUF later establish an AS once they decide to build a stable presence in Norway.
The role of accounting in Norway when choosing structure
This is where the role of professional accounting in Norway becomes critical.
A qualified accountant supports foreign companies with:
- evaluating NUF vs AS in practice
- tax planning and risk assessment
- VAT obligations and registration
- payroll and employment compliance
- registration with Brønnøysundregistrene
- reporting obligations
- ongoing dialogue with Norwegian authorities
In Norway, accounting is closely connected to compliance. Errors in structure or reporting often lead not only to financial consequences, but also to reputational damage.
Common mistakes foreign companies make when entering Norway
Based on real-life cases, the most common mistakes include:
- choosing a NUF without understanding legal consequences
- starting operations before proper registration
- incorrect VAT registration
- ignoring industry-specific certification requirements
- underestimating labour law obligations
- treating accounting as a formality instead of strategic support
- using unrealistic pricing models
- lack of proper documentation
Almost all of these issues can be avoided with proper preparation and cooperation with experienced local advisors.
Practical checklist before entering the Norwegian market
Before starting operations in Norway, every foreign company should verify:
- legal structure chosen consciously (NUF vs AS)
- registration completed
- VAT obligations correctly assessed
- tax registration completed
- employment compliance reviewed
- minimum wage requirements checked
- certificates and authorisations verified
- contracts aligned with Norwegian standards
- accounting and payroll systems established
- professional Norwegian accountant engaged
This checklist is not bureaucracy. It is risk management.
Why structure and compliance directly affect business success
In the Norwegian market, compliance is not only a legal requirement. It is a matter of business credibility.
Clients, partners, auditors and authorities expect companies to:
- operate transparently
- respect labour law
- fulfil tax obligations
- maintain proper documentation
- understand their responsibilities
Companies that do this well build strong, long-term market positions. Those who underestimate it often struggle.
Final thoughts: structure is strategy
From practical experience, choosing between NUF and AS is rarely just a formal decision. It reflects how seriously a company treats its presence in Norway.
Companies that invest in structure, compliance and professional accounting from the beginning usually:
grow more sustainably
gain trust faster
avoid legal risks
build stronger client portfolios
FAQ – NUF vs AS and doing business in Norway
What is the difference between NUF and AS in Norway?
A NUF is a branch of a foreign company, while an AS is a separate legal entity under Norwegian law.
Is NUF or AS better for foreign companies in Norway?
NUF may work for short-term presence. AS is usually better for long-term operations and credibility.
Do I need an accountant in Norway?
Yes. Norwegian accounting covers tax, compliance, reporting and legal obligations that require local expertise.
Can I run a business in Norway without registration?
No. Registration and compliance are mandatory before starting operations.
Why is accounting in Norway so strict?
Because accounting is part of the national compliance system, ensuring transparency, tax correctness and trust.
Can a NUF be converted into an AS later?
No. Aksjeselskap AS, is e legal entity in Norway and must thus be registered from scratch.
No. Aksjeselskap AS, is e legal entity in Norway and must thus be registered from scratch.
Questions about doing business & accounting services in Norway?
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