Can Norwegian-registered foreign enterprises (NUFs) be parties in legal proceedings in Norway?

A NUF is normally not a separate legal entity
A NUF is the Norwegian branch of a foreign enterprise. The branch is normally not a separate legal entity from the foreign enterprise.

It is therefore generally the foreign enterprise itself, rather than its Norwegian branch, that has capacity to sue and be sued.

The Norwegian Supreme Court established this principle in Rt. 2008 p. 1730 and subsequently confirmed it in Rt. 2014 p. 1055.

The distinction may appear technical, particularly where the Norwegian branch operates under its own Norwegian organisation number and business name. It can nevertheless be important when proceedings are commenced.

What happens if the NUF is named as the party?
Naming the branch rather than the foreign enterprise does not necessarily mean that the proceedings will automatically be dismissed.

Under the Norwegian Dispute Act, procedural defects that can be remedied should in principle be capable of correction. Depending on the circumstances, it may therefore be possible to correct the designation of the party from the NUF to the foreign enterprise.

If the defect is not corrected, however, the case may be dismissed.

Getting the party wrong can consequently have serious implications, particularly where a limitation period or procedural deadline is approaching. The correct identity of the claimant and defendant should therefore be considered before proceedings are commenced.

Can the foreign enterprise still be sued in Norway?
Yes, in many cases.

The fact that the Norwegian branch itself does not have capacity to be a party does not mean that a dispute concerning the branch's activities must necessarily be brought abroad.

Under the Norwegian Dispute Act, a foreign business with a branch, agency or similar place of business in Norway has ordinary venue at that place of business where the proceedings concern the activities carried on there.

Whether Norwegian courts have jurisdiction must nevertheless be assessed in the particular case, including any applicable international jurisdiction rules or jurisdiction agreement.

The practical solution will therefore often be to name the foreign enterprise as the party, while bringing the proceedings before the Norwegian court with jurisdiction over the dispute.

Important exceptions for financial-sector branches
There are important exceptions to the general rule that a Norwegian branch does not have capacity to be a party.

Norwegian case law has recognised such capacity for certain regulated branches of foreign financial institutions.

The Supreme Court recognised this for a branch of a foreign insurance company in Rt. 2005 p. 451. Similar conclusions have been reached for branches of financing companies and banks, including in Rt. 2005 p. 1229 and Rt. 2009 p. 372 (Fokus Bank).

The position reflects the particular regulatory framework applicable to foreign financial institutions operating through branches in Norway.

The current Norwegian Financial Institutions Act contains specific rules on the establishment, management and representation of Norwegian branches of foreign financial institutions. For certain branches, the person managing the branch must have authority to act on behalf of the foreign institution and to commence and receive legal proceedings relating to the branch's activities in Norway.

The scope of the exception should nevertheless be assessed in relation to the particular institution, the applicable regulatory regime and the subject matter of the dispute.

It should therefore not be assumed merely from the fact that an entity is registered as a NUF that either the branch or the foreign enterprise is automatically the correct party.

Which party should be named?
Where a dispute involves a foreign company operating through a Norwegian branch, three questions should normally be considered at an early stage:

• Is the Norwegian branch a separate party for procedural purposes, or should the foreign enterprise be named?
• Do the Norwegian courts have jurisdiction, and which Norwegian court has venue?
• Who is authorised to represent the foreign enterprise or branch and receive service of proceedings?

For an ordinary commercial NUF, the starting point will normally be that the foreign enterprise should be named as the party.

For regulated financial-sector branches, a separate assessment may be required.

Even where the branch can itself appear as a party, it may also be relevant to consider whether naming the foreign enterprise is preferable in light of the scope of the dispute, enforcement and the legal effect of the eventual judgment.

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Originally published 24 January 2024. Last updated 16 August 2026.