Published
Sep 4, 2023
Updates:
Sep 16, 2024
Iceland
Price:
Delivery:
Legal forms:
Payment methods:
3 weeks
LLC, LLP, PLC
Document checklist:
1.Passport
2.Proof of Residence
Requirements:
Local legal address (Handled by B2B Hub)
Iceland
$
2500
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Registrar
Abbreviation
Phone
Directorate of Internal Revenue (Ríkisskattstjóri)
N/A
+354 442 1000
Location
Capital
Official languages
Population
Currency
ISO 4217
Reykjavík
Iceland
Icelandic
375,318
ISK
Icelandic Krona
Delivery
-
Certificate of incorporation
-
Articles of association
-
Meeting minutes
-
Company stamp
Certificate of incorporation
Company stamp (By stempil.com)
Registration documents and guidance
FAQ for company formation in Iceland
Q: What is the process for forming a company in Iceland?
A: The process for forming a company in Iceland involves registering with the Icelandic Directorate of Internal Revenue and obtaining a business registration number.
Q: What are the different types of companies that can be formed in Iceland?
A: There are two types of companies that can be formed in Iceland: limited liability companies and public limited companies.
Q: What are the requirements for forming a limited liability company in Iceland?
A: To form a limited liability company in Iceland, there must be at least one director and one shareholder. The company must also have a registered office address in Iceland and appoint a managing director.
Q: What are the requirements for forming a public limited company in Iceland?
A: To form a public limited company in Iceland, there must be at least three directors and a minimum of one shareholder. The company must also have a registered office address in Iceland and appoint a managing director.
Q: What is the minimum share capital requirement for forming a company in Iceland?
A: The minimum share capital requirement for forming a company in Iceland is ISK 500,000.
Q: What are the ongoing compliance requirements for companies in Iceland?
A: Companies in Iceland are required to file annual financial statements and maintain proper accounting records. The company must also hold an annual general meeting.
Q: What are the tax implications for companies in Iceland?
A: Companies in Iceland are subject to corporate income tax on their profits at a rate of 20%. There are various tax incentives and exemptions available to companies in Iceland.
Q: Can foreigners form a company in Iceland?
A: Yes, foreigners can form a company in Iceland. There are no restrictions on foreign ownership of companies in Iceland.
Iceland has a strong and stable economy, with a GDP of $25.2 billion in 2019. This is a 3.2% increase from 2018, and the country is expected to continue to grow in the coming years. The unemployment rate in Iceland is low, at just 2.7%, and the inflation rate is also low, at 1.7%. Iceland has a strong export market, with exports totaling $7.2 billion in 2019. The main exports are fish and fish products, aluminum, and tourism. Iceland also has a strong tourism industry, with over 2 million visitors in 2019. The country has a strong banking sector, with the three largest banks controlling over 80% of the banking sector. Iceland also has a strong energy sector, with geothermal and hydropower providing over 90% of the country's electricity. Overall, Iceland has a strong and stable economy, with a bright future ahead.
Iceland has a progressive tax system that applies to both individuals and corporations. The tax rates vary depending on the level of income earned or profits made. Here is an overview of the taxation system in Iceland:
Corporate Taxation:
- The corporate tax rate in Iceland is a flat rate of 20%.
- Corporations are required to file their tax returns by the end of March each year, and tax payments are due on the same date.
- There is also a municipal tax that applies to corporations, which ranges from 12% to 18%, depending on the municipality where the company is located.
- Corporations are required to pay a minimum tax each year, regardless of their profits. The minimum tax is calculated based on the company's assets, and the rate ranges from 0.1% to 0.4%.
Personal Taxation:
- The personal income tax system in Iceland is progressive, with tax rates ranging from 37.3% to 46.24%.
- The tax year in Iceland runs from January 1st to December 31st.
- Individuals are required to file their tax returns by the end of March each year, and tax payments are due on the same date.
- There are also several deductions and tax credits available to individuals, including deductions for mortgage interest payments and tax credits for charitable donations.
Tax Payment Process:
- Tax payments can be made online or in person at a bank.
- The Icelandic tax authorities provide taxpayers with a tax return form each year, which can be completed online or on paper.
- The tax return must include information about the taxpayer's income, expenses, and deductions for the previous year.
- The tax authorities will then calculate the taxpayer's tax liability and send them a tax assessment.
- Taxpayers can choose to pay their taxes in a lump sum or in installments throughout the year.
In summary, Iceland has a progressive taxation system for both individuals and corporations. Tax returns must be filed by the end of March each year, and tax payments are due on the same date. Taxpayers can make their payments online or in person at a bank.
Application without registration
The first director
The second director
The third director
The first shareholder
The second shareholder
The third shareholder
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