News: Registration of Business in Iceland

How to open a business in the Iceland?

The country of ice and winds, Iceland is located in the Northern Europe. Despite the unattractive geographical location and severe climatic conditions, in terms of convenience and ease of doing business, the state is in the top 20 countries, far ahead of its nearest neighbours.

Advantages of Business in Iceland

Low tax burden, competitive prices, conversion of the economy into the development of scientific and research potential and financial services created a special attractiveness of doing business in the country.

Foreign investors point out the following factors that characterize a successful business in Iceland:

1. State support for the development and modernization of business,
2. Low tax rates,
3. High level of technology,
4. Developed infrastructure,
5. High GDP,
6. Possibility to get a residence permit,
7. Possibility of dual citizenship,
8. Absence of terrorist acts and military actions.

The goals and the choice of the tax system characterize business in Iceland with the following more optimal forms of enterprises:

1. Individual enterprise.
   The founder is an individual. The liability of the company extends to the personal property of the owner.
2. Private limited company.
   The most common form of company in the country. The consent of the total number of shareholders is required to alienate the shares. The liability of the founders is limited to the amount of contributions to the authorized capital.
3. Limited liability company.
   Created by at least two participants, legal entity or individual. Shares can be offered for public use.
4. European company.
   It is registered in accordance with the norms of the European Union.
   In addition, it is allowed to register cooperatives, charitable foundations and affiliates of foreign companies.

Procedure of Business Registering of in Iceland

The number of procedures is small, business registration in Iceland understandable and simple process. Given the opportunity to establish a company via Internet service providers, the period is shortened as much as possible. Indeed, in any process, scrupulous and responsible approach is important.

In general terms, registering a business in Iceland consists of the following procedures:

1. Verification of the uniqueness of the name. Any resemblance to the names of registered companies is excluded.
2. Funding in a local bank as the initial share capital,
3. Payment of registration fee,
4. Registration in the national register of companies,
5. Registration in the tax authority,
6. Registration of employees in the social insurance services in case of need.

The period of business registration  in Iceland in average takes 3-4 weeks.

The process is absolutely simple and automated, the main difficulty lies in the proper preparation of documents and their timely submission to the relevant authorities.

Important information:

• Iceland is among the countries, which signed a number of international agreements on double taxation,
• Some activities require compulsory licensing,
• Non-residents of the country are prohibited to participate in national airlines, with a share exceeding 49%,
• Limited liability companies, by submitting a corresponding application, independently determine their beginning and end of the tax period,
• Two-tier tax system.

Contact our legally qualified specialists and get an expert consultation. Precision and clarity of information will help to understand the intricacies of Icelandic law.

Please, select organizational and legal form of the company You are interested in:

Iceland-Ehf

Iceland-Hf

For reference:

• Einkahlutafelag (Ehf), private limited company - Limited Liability Company
• Hlutafelag (Hf), public limited company - Open Joint Stock Company