Hiring in Norway without setting up a company

Hiring employees in Norway does not necessarily require setting up a Norwegian subsidiary. Many foreign companies successfully hire in Norway without establishing a local entity by using an Employer of Record (EOR).

This approach is particularly attractive when hiring one or two employees, engaging project-based staff, or testing the Norwegian market before making a long-term commitment.

The challenge of setting up a company in Norway

For foreign companies, the traditional route involves:

• registering a Norwegian subsidiary
• setting up local accounting and payroll
• appointing local representatives
• complying with ongoing reporting and audit obligations

While this structure is appropriate for long-term operations, it often takes several weeks to establish and comes with legal, administrative and cost burdens that may be disproportionate for limited hiring needs.

The alternative: Employer of Record (EOR) in Norway

An Employer of Record in Norway (EOR) is a local company that acts as the legal employer on your behalf.

The EOR:

• signs the employment contract with the employee
• runs Norwegian payroll
• withholds income tax and social security contributions
• ensures compliance with Norwegian employment law

You, as the foreign company, retain full control over the employee’s daily work, responsibilities and performance management.

This is a well-established and compliant employment model used by international companies across industries.

What hiring through an EOR in Norway looks like in practice

From the employee’s perspective:

• a fully compliant Norwegian employment contract
• monthly salary with correct tax deductions
• statutory holiday pay
• occupational pension
• sick pay and employee protections under Norwegian law

From your perspective:

• a local employment presence in Norway
• no need to set up a legal entity
• reduced administrative and compliance risk

The EOR also handles mandatory reporting to the Norwegian Tax Administration, pension enrolment and correct calculation of holiday pay entitlements. These details are often underestimated, but errors can result in penalties, disputes or retroactive liabilities.

When does Employer of Record make sense in Norway?

Using an EOR in Norway is particularly suitable when:

• hiring remote employees based in Norway
• entering the Norwegian market on a trial basis
• staffing short- or medium-term projects
• speed of hiring is critical

Onboarding through an EOR can typically be completed in days, whereas company registration often takes weeks.

When EOR may not be the right solution

EOR is not always the optimal structure. If you plan to:

• build a large local workforce
• conduct significant commercial activity in Norway
• establish long-term operations

a Norwegian entity may be more appropriate.

Additionally, EOR does not eliminate all regulatory considerations. Depending on your activities, obligations such as VAT registration, work permits for non-EU nationals, or industry-specific compliance may still apply.

Getting employment in Norway right from the start

A common mistake foreign companies make is assuming that hiring one employee in Norway is simple. Norwegian employment law is highly protective of employees, with detailed rules on termination, notice periods, benefits and working conditions.

Working with an experienced Employer of Record provider in Norway helps ensure compliance from day one and avoids costly corrections later.

ECOVIS assists foreign companies with hiring in Norway, whether through Employer of Record solutions or by establishing a local entity. We help assess the correct structure based on your business goals, risk profile and timeline.

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