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Email: info@mevconsultants.com
Email: info@mevconsultants.com
Register a company in Iceland
Company incorporation, bank accounts, accounting services in Iceland
Registration packages
Services
Essential
Standard
Premium
Company registration (hlutafélag)
Annual registered address
Notary services and company seal
Corporate bank account
Accounting services
Start your company in Iceland
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How you can register a company in Iceland with us
Submit shareholder and director information to our firm with a signed power of attorney
Settle a payment for registration and banking assistance
Receive corporate documentation of the registered company and access to the corporate bank account of your company
Key details about Iceland
Iceland is a Nordic island country located in the North Atlantic Ocean and in the Arctic Ocean. Iceland has a territory of 102,775 square kilometers. Iceland has access to the North Atlantic Ocean and to the Arctic Ocean. The nearest neighbors of Iceland are Greenland, Norway and the United Kingdom. The capital city of Iceland is Reykjavík, the largest city and the location of key government institutions. Iceland has a population of 376,250 people.
Corporate taxation, VAT taxation, Personal taxation
- Corporate income tax - Standard tax rate 20%. Tax returns are filed on an annual basis. Advance income tax payments are made on a monthly basis
- Dividend withholding tax - 20% if the recepient is a company, 22% if the recepient is a partnership or an individual
- Interest withholding tax - 12%
- Royalties withholding tax - 20% if the recepient is a company, 22% if the recepient is a partnership or an individual
- Capital gains tax - 20%
- VAT - Standard tax rate 24% or reduced rates 0% and 11% or tax exempt. Tax returns are filed on a weekly, a bimonthly, a monthly, a biannual or an annual basis
- Personal income tax - from 31.45% up to 46.25%.
The following are the most common types of companies to incorporate a company in Iceland as:
- Limited liability company (einkahlutafélag - ehf)
- Public limited company (hlutafélag - hf)
- General partnership (smeignarfélög - sf.)
- Limited partnership (samlagsfélög, slf.)
- Partnerships limited by shares (samlagshlutafélög, slhf.)
- Cooperative company (samvinnufélög - svf.)
- Branch (útibú).
- Individuals or legal entities that are intending to register a company in Iceland can be resident or non-resident in Iceland.
- A resident or a non-resident individual can be a company director in Iceland. It is required to set up a company in Iceland with an Icelandic resident individual or an OECD resident individual as one of its directors.
- At least 1 shareholder is required in order to register a company in Iceland if such company is incorporated as a ehf (a limited liability company). An individual shareholder can simultaneously become a director of this company.
- It is not required to create substance (resident employees, office space) in Iceland in order to establish a company in Iceland or to conduct business in the country.
- Minimum share capital that is required in order to start a company in Iceland as a ehf (a limited liability company) is ISK 500,000.
- Ehf registration takes between 10 and 15 business days with the bank account taking up to 5 business days.
- Details of company founders, shareholders and directors after company registration in Iceland is complete is publicly available in the state corporate register.
- With our service you can register a company in Iceland remotely upon a power of attorney.
Official currency of Iceland is Icelandic króna (ISK).
Iceland has a mixed economy with high volumes of free trade and government regulation. Hydropower and geothermal power is the primary source of electrical energy in the country. The presence of abundant electrical power due to Iceland's geothermal and hydroelectric energy sources has led to the growth of the manufacturing sector. Power-intensive industries, which are the largest components of the manufacturing sector, produce mainly for export. Aluminium smelting is the most important power-intensive industry in Iceland. Iceland is the second biggest fisheries nation in the North East Atlantic behind Norway. Iceland's economy is highly export-driven. Tourism is Iceland's largest export sector. Iceland is one of the most tourism dependent countries in the world. Iceland's economy has been diversifying into manufacturing and service industries in the last decade, including software production, biotechnology and finance.
The GDP of Iceland grew by 4.4% in 2021 and amounted to USD 25.5 billion. Tertiary sector makes up 66% of the GDP of the country, followed by industry sector at 20%, agriculture at 3.7%.
In terms of foreign trade the largest exports of the country are marine products aluminium, ferro-silicon alloys, machinery and electronic equipment for the fishing industry, software, woollen goods.
Imports of Iceland consist of oil, natural gas, petroleum products, cement, machinery and equipment, cars and vehicles, electrical equipment, consumer goods, food products, textiles, fishing vessels.
Primary trading partners of Iceland are Netherlands, Spain, France, Norway, Denmark, Sweden, Estonia, Germany, United Kingdom, Netherlands, Poland, Italy, USA, China and Brazil.
Iceland has a mixed economy with high volumes of free trade and government regulation. Hydropower and geothermal power is the primary source of electrical energy in the country. The presence of abundant electrical power due to Iceland's geothermal and hydroelectric energy sources has led to the growth of the manufacturing sector. Power-intensive industries, which are the largest components of the manufacturing sector, produce mainly for export. Aluminium smelting is the most important power-intensive industry in Iceland. Iceland is the second biggest fisheries nation in the North East Atlantic behind Norway. Iceland's economy is highly export-driven. Tourism is Iceland's largest export sector. Iceland is one of the most tourism dependent countries in the world. Iceland's economy has been diversifying into manufacturing and service industries in the last decade, including software production, biotechnology and finance.
The GDP of Iceland grew by 4.4% in 2021 and amounted to USD 25.5 billion. Tertiary sector makes up 66% of the GDP of the country, followed by industry sector at 20%, agriculture at 3.7%.
In terms of foreign trade the largest exports of the country are marine products aluminium, ferro-silicon alloys, machinery and electronic equipment for the fishing industry, software, woollen goods.
Imports of Iceland consist of oil, natural gas, petroleum products, cement, machinery and equipment, cars and vehicles, electrical equipment, consumer goods, food products, textiles, fishing vessels.
Primary trading partners of Iceland are Netherlands, Spain, France, Norway, Denmark, Sweden, Estonia, Germany, United Kingdom, Netherlands, Poland, Italy, USA, China and Brazil.
Foreign entrepreneurs expand to Iceland and seek to incorporate a company in Iceland in order to conduct business in the following sectors:
- renewable energy
- wholesale and retail trade
- data centers
- biotechnology
- carbon fiber
- algae culture
- greenhouses
- fish farming
- life sciences
- polysilicon
- IT
- real estate
- tourism.
Benefits of registering a company in Iceland
Business climate
- Access to EU markets
- Access to the North Atlantic Ocean and to the Arctic Ocean allows to establish a maritime trade
- Open economy
- Stable economic growth
- Highly-qualified workforce
- Political stability
- Secure legal and justice systems
- Comprehensive protection of property rights
- Comprehensive personal security
- Investment protection
- Low inflation
Tax incentives
- Corporate income tax incentive for innovation enterprises
- Corporate income tax incentive for intial investment
- Temporary reimbursements in respect of filmmaking in Iceland
- Temporary reimbursements in respect of music recording in Iceland
- Double tax treaties with several jurisdictions
Ease of doing business
- Iceland ranks #26 in the global Ease of doing business ranking
- No foreign exchange controls
Register your company in Iceland
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