Registration of Company in Iceland - Hf

Company registration in Iceland

Scandinavian Republic of Iceland is located in the territory covering 103,000 m2 in Northern Europe. Eponymous island is the second in Europe due to its size. Iceland has points of contact with the Arctic Circle. The population is about 317 thousand people.

The administrative center, where one third of the country's population resides, is Reykjavik. Icelandic has the status of the state language.

Cold maritime climate of the country is slightly softened a bit by the impact of the North Atlantic Drift .

Iceland's economy is characterized by average development rate. It is based on fisheries, foreign investment in energy-consuming industries. Tourism is also developing here. Important export products are products made of wool. The largest quantities of imports are associated with oil procurements.

The currency is Icelandic krona (ISK).

If you decided to register company in Iceland, the following information will be useful for you.

Forms of doing business in Iceland

The most popular is registration of the company in Iceland in the following forms:

• private limited company – Ehf;
• joint stock company with limited liability – Hf.

The legislative framework in Iceland.

In Iceland, the Laws "On Companies" and "On ITC companies" regulate the activities of companies.

ITC is international trading company that can conduct activity in the forms of LLC and JSC. Company receives the status of ITC by obtaining special license.

Permitted types of activities are the following:

• Intermediary services (non-resident companies participate), provision of services, trade;
• Holding activities;
• Disposition of marine and air vessels (for lease, sublease, possession, management), vehicles operated under the flags of other countries;

Sales of fish, seafood, and agricultural products of Icelandic origin are prohibited.

Features of company in Iceland:

• For obtaining ITC status from 3 to 4 weeks are required.
• You can not use the names of already existing companies or identical ones. Ending of the company name shall contain the abbreviation ITC, regardless of its organizational and legal form.
• Company registration takes place in Iceland subject to the submission of the following documents:

- Charter;
- Memorandum of association;
- Minutes of the first (constituent) meeting of shareholders.

• The address for receiving official correspondence sent by the public authorities to the company in Iceland is provided by incorporation agent. Address shall be all the time in the territory of jurisdiction.
• Minimum authorized capital requirement for ITC is approximately € 7000.
• Issuing registered shares with nominal value is only allowed.
• Minimum number of shareholders is one. There are no requirements concerning status and country of residence.
• Minimum number of directors is also one. There are no requirements concerning his status, but there is a feature in relation to the country of residence, namely: one of the directors shall be a citizen of Iceland or state member of the international organization OECD, which includes 30 states.
• Meetings of Shareholders shall be held annually, anywhere in the world, and there is possibility of their organizing over the phone. Minutes of the meetings are stored in place of actual registration of the office.
• Meetings of the Board of Directors of joint-stock companies shall be held only in Iceland.
• Confidentiality of information about shareholders, directors, first founders, and official address of the company's office is not ensured.
• Confidentiality of data on banking operations of the company is ensured. Selection of Bank and number of accounts are not limited.

Taxes in Iceland

• For ITC company:

- income tax – 5%;

- tax on total capital – 0%;

- stamp duty – 0%;

- license fee (annual) – ISK 100 000.

• For private entrepreneur:

- income tax – 38,58%.

• For partnership:

- income tax – 26%.

• For companies and branches:

- income tax – 18%;

- tax on shareholders’ profits – 10%.

If you need to register a company in Iceland, we are ready to provide comprehensive professional assistance for you. It is now simple and easy to buy company in Iceland.

Registration of companies, offshore companies in different countries of the world is one of the main directions of our activity.