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Iceland is situated in the North Atlantic Ocean and is
the westernmost outpost of Europe. The island covers an area
of about 103,000 sq. km. (40,000 square miles) - a similar
area to Ireland.
The population of Iceland is approximately 280,000, 170,000 of whom live in
the capital Reykjavik and surrounding areas.
Parliamentary democracy. The present Government is a centre-right coalition
of the independence Party (P) and the Progressive Party (PP), formed in 1994 and
re-elected in 1999. The head of state is the President of Iceland, who has
limited powers and is elected in a non-political national election.
Iceland is a developed democracy that enjoys political
and economic stability. High level of education, developed
and competitive service sectors, first rate
telecommunications and a developed bank industry are all
factors contributing to a solid infrastructure. Iceland's
GDP per capita is one of the highest within the OECD.
Iceland is a part of the EEA and EFTA and has close ties
with the Scandinavian countries.
The official and spoken language is Icelandic. Good
command of English is general and knowledge of other
European languages common.
Icelandic Kronur (ISK).
No exchange controls are imposed in Iceland although
formal reporting requirements are required by the Central
Bank these are mainly for statistical purposes. Only
Icelanders must give their social security number when
exchanging foreign currency.
Acts on Private and Public Limited Companies. Act on International Trading
Companies. ITC's are Ehf or Hf companies with special benefits and restrictions
specified in a separate act, but are governed by the same Corporate Law.
Private and Public Limited Company
A registration form is submitted to the Registry of
Companies accompanied by the Minutes of the Assembly of
Foundation, Certificate of Incorporation and the Articles of
Association. The applicant must pay a registration fee and
confirm that share capital has been paid.
ITC's must go through an application process prior to registration.
Yes, specified groups, which include for example,
banking, insurance, financial services and ITC's.
A Company incorporated in Iceland has the same powers as
a natural person.
One or two days for Hf and Ehf, two to three weeks for
A name that is similar to or identical to an existing
company. A well-known name that is known to exist elsewhere.
The name of the company can be expressed in any language using the Latin
alphabet. The Registrar may request an Icelandic translation to ensure that the
proposed name does not contravene name restrictions.
Bank, savings, loans, insurance, assurance, reinsurance, fund management,
investment fund, trust, trustees, Chamber of Commerce, municipal or their
foreign language equivalents or any name in English or a foreign language that
may suggest association with the banking or Insurance industries.
Yes, must be maintained in Iceland.
Einkahlutafelag (Ehf), private limited company. Hlutafelag (Hf) public
limited company, Alþjóðlegt viðskiptafélag or ITC (av.).
Hf requires that shares be registered to a person or entity. Ehf does not
have to issue shares but needs to keep its own register of shares.
Private Company - The minimum share capital is ISK
500,000 and must be fully paid.
Public Company - The minimum
share capital for a is ISK 4,000,000 and must be paid up. If
the capital of a Public Company exceeds this amount, the
minimum paid in is 4 million, or half of the total.
Ordinary shares, preference shares, deferred shares,
redeemable shares and shares with or without voting rights.
Taxation is paid by companies based on annual accounts, which are submitted
to the tax authorities at the end of the company's fiscal year. A company is
free to choose its own year-end but must apply for an exception if it is not the
calendar year. The current tax rate is 20% for limited liability companies and limited partnerships. The tax rate for other corporations (e.g. partherships is 36%.
Iceland has 15 ratified double taxation agreements and several pending
None except for ITC companies, ISK 100,000.
All Icelandic companies are required to file accounts.
Public Companies require an audit by a State Authorised
Public Accountant, but Private Companies require an
Companies with less than 3 shareholders require a minimum
of one director; otherwise the minimum number of directors
is three. A Public Company requires at least three Directors
and a Managing Director. Majority of Directors must have
permanent residence in Iceland or an OECD country.
The minimum number of shareholders is one for a private
company and two for a public company.
The minimum number of shareholders is one for a private company and two for a
Iceland Fact Sheet
Iceland Enquiry Form
Iceland Order Form
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