Feeling boxed in by complex tax codes and state-imposed business hurdles? If you’re an entrepreneur or digital nomad considering Norway as your next base, understanding the country’s sole proprietorship status—Enkeltpersonforetak (ENK)—could be your ticket to streamlined operations and smarter tax optimization in 2025. Let’s break down the facts, requirements, and practical hacks for leveraging this business structure to your advantage.
What Is an Enkeltpersonforetak (ENK) in Norway?
Norway’s answer to the sole proprietorship is the Enkeltpersonforetak. This status allows individuals to run a business and invoice clients without forming a separate legal entity. It’s a popular choice for freelancers, consultants, and small business owners who value simplicity and autonomy.
Key Features of ENK in 2025
| Feature | Details |
|---|---|
| Legal Status | No separate legal entity; owner is personally liable |
| Who Can Register | Accessible to regular citizens |
| Registration Authority | Brønnøysund Register Centre |
| Minimum Capital | None required |
| Taxation | 22% flat tax on net profit, plus 11.4% social security contributions |
| VAT Registration Threshold | NOK 50,000 (approx. $4,800) annual turnover |
How to Register an ENK in Norway: Step-by-Step
Setting up an ENK is refreshingly straightforward. Here’s how you can get started:
- Pro Tip #1: Register Online via the Brønnøysund Register Centre. The process is digital and typically quick.
- Pro Tip #2: No Capital Needed. Unlike many European jurisdictions, Norway does not require a minimum capital investment to launch an ENK.
- Pro Tip #3: Personal Liability. Remember, you are personally responsible for all business obligations—so keep your risk profile in mind.
Taxation and Social Security: What to Expect in 2025
Norwegian ENK profits are taxed as personal income. Here’s the breakdown for 2025:
- Flat Tax Rate: 22% on net profit
- Social Security Contributions: 11.4% for self-employed individuals
For example, if your ENK earns NOK 100,000 (approx. $9,600) in net profit, you’ll pay NOK 22,000 (approx. $2,100) in income tax and NOK 11,400 (approx. $1,100) in social security contributions. This transparent structure makes it easier to forecast your fiscal obligations and optimize your take-home income.
VAT Registration: When Is It Required?
If your annual turnover exceeds NOK 50,000 (approx. $4,800), you must register for VAT. This threshold is relatively low, so keep a close eye on your invoicing to avoid surprises.
Checklist: Optimizing Your ENK Setup
- Pro Tip #4: Track Your Turnover to anticipate VAT registration and avoid compliance headaches.
- Pro Tip #5: Deduct Legitimate Expenses to reduce your taxable profit and lower your overall tax burden.
- Pro Tip #6: Consider Personal Liability when signing contracts or taking on debt—there’s no corporate shield.
Summary: Is ENK Right for You?
The Enkeltpersonforetak offers a low-barrier, flexible way to do business in Norway in 2025. With no minimum capital, straightforward registration, and transparent tax rates, it’s a pragmatic choice for those seeking autonomy and efficiency. However, personal liability is a trade-off to weigh carefully.
For more details, consult these official resources:
With the right strategy, Norway’s ENK can be a powerful tool for optimizing your business freedom and fiscal efficiency in 2025.