Norway’s Regulatory Reporting Requirements for Finance: What Foreign Businesses Need to Know
As a Norwegian registered foreign business (NUF), you are required by law to submit specific financial documents to regulatory bodies in Norway. These requirements are outlined in the Accounting Act and the Auditors Act, and failure to comply can result in severe penalties.
Submission Requirements
According to the Accounting Act, NUFs must submit:
- One copy of their annual accounts
- Annual report
- Auditor’s report
These documents must be drawn up in accordance with the legislation in your country of origin and meet the requirements of the Accounting Act. The documents must also be translated into Norwegian, Danish, Swedish, or English.
Branch Account Requirements
In addition to submitting these documents, NUFs must also draw up a separate branch account that meets the requirements of the Accounting Act. This account must be audited and published in accordance with the legislation in your country of origin. However, if your business only operates in Norway and the legislation in your country of origin allows for the compilation of accounts that meet the requirements of the Norwegian Accounting Act, you may not need to draw up a separate branch account.
Additional Information
When submitting your annual accounts, you must include:
- A statement indicating when they were settled and when they will be made public according to the legislation in your country of origin
- Information on the business’s activities and financial situation, including:
- Income and expenses
- Assets and liabilities
- Cash flow
Auditor’s Report
The auditor’s report must meet the requirements of the Auditors Act and include:
- A statement confirming that the submitted documents comply with Norwegian law and regulations
- Verification that the business management has met its obligations to maintain proper accounting records and ensure that the registration and documentation of accounting information is done properly and in a timely manner
Exemptions
In cases where your main entity’s annual accounts meet the requirements of the Accounting Act, you may not need to draw up separate branch accounts, branch annual reports, or auditor’s reports for the Norwegian branch. However, you must include a statement in the notes of your annual accounts indicating that they were created and audited in accordance with Norwegian law and regulations.
Auditor Authorization
The Auditors Act does not prohibit the same auditor from auditing both the company’s accounts and the branch’s accounts, provided that the auditor is authorized to practice in Norway. However, the auditor must still perform all necessary audit work to provide an auditors report meeting the requirements of the Auditors Act.
Conclusion
In summary, NUFs operating in Norway must comply with specific regulatory reporting requirements, including submitting annual accounts, annual reports, and auditor’s reports that meet the requirements of the Accounting Act and the Auditors Act. Failure to comply can result in severe penalties, so it is essential to understand these requirements and ensure compliance.