As of October 1, 2024, the Brønnøysund Register Centre in Norway will open the new Register of Beneficial Owners. This register aims to provide transparency regarding who truly controls Norwegian companies, playing a key role in the fight against money laundering, terrorism financing, and economic crime.
What Does This Mean for Your Company in Norway?
If your company operates in Norway through a subsidiary or has established a limited company (AS) in Norway, you should be aware that the obligation to register beneficial owners takes effect on July 31, 2025. Before this deadline, all companies must identify and register their beneficial owners—those who own or control more than 25% of the company or otherwise have significant influence or control.
The obligation is irrelevant for companies registered with a NUF (Norwegian foreign company).
Comparison with International Standards
Many countries, including EU member states and the UK, already require companies to register their beneficial owners to combat financial crime and enhance transparency. In Norway, as in other jurisdictions, beneficial owners are defined as individuals who own or control more than 25% of the company’s capital or voting rights, or who have the right to appoint or remove a majority of the board members.
Norway’s regulations align closely with international best practices for transparency and financial oversight, so companies operating across borders will find familiar standards in place. However, each country has specific nuances that need to be carefully managed, making it essential for foreign businesses to understand local requirements.
What is a Beneficial Owner?
A beneficial owner is any individual who directly or indirectly owns or controls a significant portion of the company. This could be through share ownership, voting rights, or by holding the right to appoint or remove board members. Companies must ensure that they correctly identify all beneficial owners, whether the control is direct or exerted indirectly through intermediary entities.
How Can TIMEVAT Help?
At TIMEVAT, we specialize in helping foreign companies navigate national and international compliance requirements. We can assist your company with identifying beneficial owners, ensuring accurate registration, and advising on how to comply with these new obligations in Norway.
