It's a great opportunity to get involved as a craft business in Norway, but you should keep a few things in mind that are different there. (Photo: © Atthapol Saita/123RF.com)
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Norway is an attractive vacation destination. But the kingdom in the far north of Europe is also an attractive country for craftspeople who want to do business there. The land of the fjords is rich in raw materials but poor in skilled workers.
What craft entrepreneurs in Norway should consider: "It is very easy to get involved as a craft company in Norway," emphasizes Olaf Lindner, foreign trade advisor at the Chamber of Crafts CottbusThe economic situation is good (especially due to the abundant oil and gas reserves), the currency (Norwegian krone) stable and the infrastructure good (especially in terms of transport, communications and energy).
"There is also a permanent shortage of skilled workers in almost all tradesThis applies particularly to metalworkers, automotive mechatronics engineers, joiners, carpenters, electronics engineers, and electrical engineers." In summary: Services from German craft businesses are in high demand in Norway.
"The seemingly impenetrable thicket of administrative requirements might initially be daunting. But: With a little preparation time, it is relatively uncomplicatedto become active in Norway – even though the country is not a member state of the European Union," Lindner emphasises.
It is important to obtain information in good time (two to three months before the start of the contract) and to complete all necessary formalities. This includes the mandatory Registration in the Norwegian Companies RegisterImportant: the necessary organization number can only be applied for by a Norwegian representative for a foreign company. "I recommend that companies start with the German-Norwegian Chamber of Commerce to cooperate. She is authorized to do such things," says Lindner.
According to the Chamber of Commerce (AHK), the Costs for this registration are approximately 650 eurosCommercial and public contracting authorities must report contracts awarded to foreign companies to the Foreign Tax Office if the contract value exceeds 10.000 Norwegian kroner (rough exchange rate: seven kroner is equivalent to one euro). However, the contractor can also do this.
Information about the contract and all seconded employees must be submitted to the tax office no later than 14 days after the start of work. If this notification isn't required, a registration obligation arises with the employer-employee register (registration and deregistration required). "The German-Norwegian Chamber of Commerce can also handle such matters," explains Lindner.
Work and residence permit
In general, EU citizens do not need a work or residence permit, as long as their stay in Norway is less than three monthsIf it takes longer, a residence permit can be applied for at the police station.
Operations management
Operations management
Operations management
Anyway Foreign companies in Norway absolutely need a fiscal representativeThe foreign trade consultant recommends working with the German Chamber of Commerce and Industry (AHK) here as well. According to the AHK, the costs for fiscal representation are approximately €400 to €600 per two months (depending on the contract volume and duration). In addition, there are costs for tax services, which can vary greatly from project to project.
Self-employed individuals and employees working on Norwegian construction sites require a construction permit. "You can apply for this permit yourself. Every employee must carry it with them at all times on the construction site." It's important not to forget it, as construction sites in Norway are subject to strict controls.
In some areas such as For electrical work or installation of telecommunications networks, additional authorization is requiredEmployees of German skilled trades companies remain covered by social insurance in Germany as long as they work in Norway for no longer than 24 months. The A1 posting certificate serves as proof of this, and can be applied for at the respective health insurance provider.
The Kingdom is subject to a generally binding minimum wage (Hourly wage for skilled workers: 169 Norwegian kroner), which is set annually. weekly working hours are up to 40 hours (with a maximum of ten hours of overtime). No work is done on weekends. Construction sites in Norway are also strictly monitored in terms of occupational safety. The responsible authority (Arbeidstilsynet) provides detailed information online.
There is no requirement to have a master craftsman's certificate in Norway. However, there are some areas that are regulated by law:
The VAT in Norway is 25 percentCraft businesses that provide services valued at more than 50.000 Norwegian kroner within a twelve-month period are subject to VAT. They must register in the VAT register through their tax representative. A reverse charge, as in Germany, is not possible.
To Norway posted employees continue to be subject to German income tax, as long as they do not stay there for longer than 183 days in twelve months or no longer than 270 days in 36 months. Important: the length of stay refers to presence, not working hours. Weekends, public holidays, or sick days are counted, and multiple stays are added together. If the time limits are exceeded, the employees are subject to limited income tax liability. This also applies if they work for a permanent establishment. A company automatically and retroactively establishes a permanent establishment if it maintains a construction site for longer than twelve months. Delays or interruptions in work do not interrupt the time limit. An income tax return must be filed regardless of tax liability.
German craftsmen are welcome guests in NorwayThey are valued for their punctuality, reliability, and, not least, the high quality of their work. But craftsmen – even if they are in high demand – should, of course, not behave like bullseye in a foreign country. In short: They should adapt to the customs and mentality of the people.
Because this can't hurt business in any way—quite the opposite. Who wants to lose a contract because they chose the wrong greeting, brought up the wrong topic during small talk, or have trouble communicating?
An obvious difference is the language. "If you want to provide services in Norway, it is a must to be able to speak at least English", explains Maret Petersson from the German-Norwegian Chamber of Commerce"Basic knowledge of the Norwegian language is also a must." This makes a good impression, and it also facilitates negotiations and agreements.
When conducting a conversation in German, Norwegians usually immediately address their counterpart with "Du." The polite "Sie" is not common in Norwegian. "Only the king is addressed formally," says Petersson. But be careful: This seemingly friendly form of address is not a sign of familiarity or closeness in Norway.
In any case, Norwegians somewhat more distant than people here, which is expressed primarily through their body language and the tone of their address. But that doesn't mean they aren't open, helpful, or hospitable. They certainly are, Petersson emphasizes. It's just that a polite distance is maintained. This is consistent with the fact that criticism in the kingdom is not expressed openly, but rather subtly.
"That's why you should listen carefully when talking to a Norwegian." On the other hand, you should choose your own words carefully"During small talk, conflicting topics like politics should be avoided – it's better to broach harmless topics." Having a brief conversation about the weather can't go wrong. Praising the Norwegian landscape can earn you some points with your counterpart.
Things are a little more relaxed in Norway when it comes to business. "A lot there is based on trust. Verbal agreements count more than in Germany", says Petersson. This means that business partners do not always have to enter into a written contract.
Hierarchies in Norway are relatively flat compared to those in Germany. "Prestige thinking is foreign to Norwegians." Titles (like doctorates) are used neither in writing nor verbally. Gender equality is more advanced than in Germany. "A Norwegian woman doesn't expect a man to hold the door open for her," says Petersson with a wink.
The German-Norwegian Chamber of Commerce offers companies wishing to operate in Norway individually tailored consulting, training, and coaching in the area of intercultural competence. Information on costs and conditions is available at:
Maret Petersson
Phone: + 47 22 12 82 27
Email: petersson@handelskammer.no
Early practice is key for those who want to be successful in international trade later on. A stay abroad during apprenticeship is ideal. The Cottbus Chamber of Skilled Crafts has excellent contacts in this regard and maintains an apprenticeship exchange program with Norwegian partners.
"Since 2004, we've been working with a secondary school in Steinkjer, about 100 kilometers north of Trondheim," explains René Grund. "And since 2009, we've regularly conducted two exchanges annually," adds the mobility consultant for the Cottbus Chamber of Commerce.
For the trainees, this is a great opportunity to gain experience they wouldn't have in their everyday work at their German skilled trades businesses. This includes getting to know another country, another culture, learning and using a foreign language, and, of course, gaining insight into other skilled trades businesses and their working methods.
"This promotes skills that would otherwise play a smaller role. You become more open and get to know the foreign market and the mentality of the people", emphasizes Grund. Such experiences can be worth their weight in gold later on when it comes to providing services abroad.
Primarily, young metalworkers, automotive mechatronics engineers, joiners, carpenters, electronics engineers and electrical engineers are visiting the Land of the Fjords. The minimum three-week stay is organized by the German Society for International Cooperation (GIZ). "GIZ covers part of the travel and living expenses in Norway."
First The exchange apprentices take part in a language course so that they can communicate with their Norwegian colleagues during their subsequent internshipBut it's not just the trainees who benefit from the stay abroad – the companies benefit as well. "This way, companies prepare their young talent for overseas assignments," says Grund. A majority of companies welcome the exchange offer.
Wolfgang Noack, managing director of Fleischhauer GmbH in Cottbus, also enjoys sending his apprentices to Norway. "I'm glad this opportunity exists. This way, my apprentices can experience a different working environment." The skilled trades company has a total of 105 employees; 18 of them are completing their training there. Three apprentices have participated in the exchange so far.
"Everything went very well. They were able to get to know a new country and, of course, our partner companies. As a company, we are very active abroad – not yet in Norway, but we have already implemented projects in Sudan, Mexico, Ukraine, and Afghanistan."
The exchange is good preparation for possible work assignments in foreign countries, Noack emphasizes. "This can be of great importance for one's future career. Craftsmen from South Brandenburg are increasingly traveling abroad," confirms René Grund.
Duration and country
Trainees can spend up to a quarter of the regular training period abroadFor example, for a three-year course, this is nine months. Shortenings or extensions are not taken into account. The maximum duration can be used as a block or in individual sections. The following applies: A stay abroad is generally possible in any country in the world, including German-speaking countries (Austria, Switzerland).
Costs
During your stay abroad, you will be Training company obliged to continue paying the training allowanceHowever, there is no obligation to cover travel and accommodation costs. There are numerous funding programs that subsidize or fully cover these costs. Funding is available for both group exchanges and individual assignments. Your local mobility advisor will be happy to help you select suitable funding programs and assist you in preparing for your stay abroad.
Contractual regulations
You must agree on the stay abroad with your trainee in writing and report it to the relevant chamber of commerce. You can use the sample forms for this purpose. If the stay lasts longer than four weeks, a training plan must be agreed upon with the chamber of commerce. It is also recommended that you conclude a contract with the host company to avoid any ambiguities. A sample contract is also provided for this purpose.
Professional School
The trainee must apply for a leave of absence from vocational school (application for leave). Abroad, there is no requirement to attend a comparable vocational school, but the trainee is obligated to catch up on the missed material independently.
Report book and Europass
During the stay abroad, the trainee must continue to maintain the report book, as the study abroad phase is part of the training program. To document the language and intercultural skills acquired abroad, the Europe-wide accepted Europass Mobility should also be used.
Insurance
Regarding insurance abroad, German social security coverage generally continues. You must have this confirmed by your health insurance provider using form A 1 or E 101. Information can be found in the information sheet "Stays Abroad During Training." These forms are available from the German Liaison Office for Health Insurance Abroad. We recommend taking out supplementary insurance, such as medical repatriation.
Source: mobilitaetscoach.de
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