Why Set Up Business in Norway?
With a population of about 5.3 million, Norway is not just about the beautiful Northern Lights or deep coastal fjords.
This Scandinavian country offers so much more than its beautiful landscape. There are many reasons that bode well with global investors such as its strong growth rates that have been consistent compared to its European counterparts particularly during the economic downturn. It is also well known for its healthy working environment.
Following the oil price collapse in the late 2014, Norway is trying to restructure its economy away from oil dependency. Some efforts are already in place to restructure the country’s economy in an attempt to make it less vulnerable to the volatility of oil price.
Norway’s Prime Minister Erna Solberg last year predicted that there will be growth in the aluminium industry, the healthcare sector and also in fish farming and fisheries.
“In the long-term, Norway will have an economy that is more diversified, and that is greener,” she was reported as saying.
Known to be open to foreign investments and further strengthened with its plan for diversification, business opportunities in this Scandinavian country can be very lucrative and promising.
There are several key points to why setting up business in Norway is an opportunity that should not be missed:
– Norway is not a member of the European Union (EU), but despite this, both Norwegian and foreign-owned companies have unrestricted access to the EU market, through the European Economic Area (EEA) agreement. It was also ranked ninth out of 139 nations in the Best countries for Business in 2017 report by Forbes. The rating was based on 11 factors comprising, property rights, innovation, taxes, technology, corruption, freedom (personal trade and monetary), red tape, investor protection, and stock market performance. This illustrates the ease in doing business in the country. It also shows the country’s advanced economy and transparent business activities.
– The country is rich in natural resources like oil and gas, marine resources, surplus of emission-free hydropower and forest resources.
– Being politically stable makes Norway a perfect location. Boasting an open and stable environment; political stability and a transparent political system makes a competitive investment climate.
– Norway is a rich country, with the second highest GDP per capita in the world. The country also scores at the top of the United Nations Development Programme’s Human Development Index ranking
– Last year, the country reduced its corporate income tax rate from 27 percent to 25 percent. This is expected to be further reduced to 22 per cent by 2018. Additionally, it reduced its capital gains tax rate from 27 percent to 25 percent and raised its dividend tax rate from 27 percent to 28.75 percent. Norway’s rank improved from 13th to 11th place in the International Tax Competitiveness Index.
– Norway has one of the fairest rule of law. It is one of the world’s least corrupt countries, ranked fifth out of 75 countries in Transparency International’s 2014 Corruption Perceptions Index. Government integrity and well-established anti-corruption measures are culturally emphasised.