DOING BUSINESS IN ICELAND IN 2017
For over a decade, Healy Consultants Group PLC has assisted our Clients with business registration in Iceland. Our services include i) Iceland company incorporation ii) government license registration iii) business bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.
Press the link headings below to read detailed, relevant, up to date information.
Advantages of Iceland company registration
- Iceland is home to a highly-skilled labour force. High quality infrastructure also helps higher skilled industries to thrive in Iceland;
- Although Icelandic law restricts company registration to Icelandic residents, there are broad exemptions. Consequently, Icelandic companies can be entirely foreign owned and operated by residents of OECD and EEA countries;
- The Iceland company registration process is uncomplicated and quick, requiring an average of 5 days to fully complete incorporation;
- An Iceland LLC requires a minimum share capital of only 500,000 ISK (€3,500);
- Iceland has a favorable tax rate for corporations, with a corporate tax rate of 20%;
- Iceland is positively ranked as the 19th easiest country to do business in. The World Bank study listed Iceland as the 35th easiest country to enforce contracts in and the 8th easiest country in the world to get electricity, thanks to high utilisation of geothermal energy;
- Iceland was positively ranked as the 20th freest economy in the Heritage Foundation’s 2016 Index of Economic Freedom, an improvement of six places on its 2015 ranking. Iceland scores relatively high in almost all areas but is dragged down by capital controls introduced during the financial crisis;
- Iceland is positively ranked as the 13th least corrupt country in the world, according to the 2015 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians;
- Iceland is positively ranked as the 29th most competitive economy in the world in the Global Competitiveness Report 2015-2016;
- Iceland has double tax treaties with more than 50 countries including France, Greece, Cayman Islands, Isle of Man, Switzerland, and the USA.
Disadvantages of Iceland company registration
- Iceland has experienced slow growth rates below 3.5% since 2008 and outlook for future growth is pessimistic. Iceland is considered at risk of another recession in the next few years;
- Reclaiming the 18% dividend withholding tax is complex, as it requires the completion of an Icelandic tax return. This delays the receipt of the withheld funds by a year;
- Iceland was disproportionately affected by the global downturn, causing it to seek emergency relief funds from the IMF in 2008. As of 2014, Iceland still has reasonably high debt but is servicing it well, reducing its debt-to-GDP ratio from 101% in 2011 to 86.4% in 2014. Ratings agency Moody’s upgraded Iceland’s sovereign debt in 2015, with a stable outlook;
- Opening global corporate bank accounts to assist Iceland company formation can be difficult. Healy Consultants works with internationally recognized banks to provide corporate bank account services;
- Complete foreign ownership is not permitted for the following business sectors i) fishing ii) fish processing iii) energy production and iv) aviation.
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- Time to incorporate: Two weeks
- Cost to set up: €14,950
- Minimum capital: €3,500
- Physical office required: No
- Shareholders: 1
- Directors: 1
- Company secretary: No
- Resident director: Yes
- Corporate tax rate: 20%
- Corporate tax base: Worldwide
- Shelf companies: No
- Main company type: einkahlutafélag company
Useful links for Iceland
Government and public authority websites:
- Iceland Company Registrar
- Iceland Central Bank
- Iceland Stock Exchange
- Iceland Investment Authority
- Iceland Chamber of Commerce
- Iceland airports
- Visiting Iceland
- Government of Iceland
- Gateway to Iceland
- Iceland Yellow pages
- The World Bank – Doing Business Iceland 2016
- Icelandic Company Law
- Icelandic Foreign Direct Investment
- Economy of Iceland
- Invest in Iceland
- Establishment of Companies in Iceland
- The Icelandic Economic Situation