Setting up an Iceland FinTech business in 2021
Since 2003, Healy Consultants Group PLC provides Iceland business set up services to our multinational Clients. Recently, this includes financial technology (FinTech) company set up in this expanding European FinTech hub.
About the Iceland FinTech sector?
- FinTech services in Iceland are provided by the three leading commercial banks, and more than 30 independent start-ups, including Meniga, Monerium and Memento Payments. Between 2015 and 2019 the sector attracted more than US$50 million in FinTech start up investment by local and foreign investors.
- Unlike established FinTech hubs like Singapore, there is currently no specific regulatory and licensing framework for the industry in Iceland. Each FinTech company operates under the general financial regulatory framework, supervised by the Financial Services Authority (FSA).
- Although an Icelandic company does not need to secure a specific licence to carry out FinTech activities, it may need a licence if it provides payment services, for example.
- Although the domestic Fintech market is small, Iceland is an ideal proving ground for FinTech technologies which can be then sold to other countries.
- To support FinTech start ups in Iceland, funding is available either through the public Technology Development Fund (TDF) or through private angel investors of venture capital funds. The TDF offers grants of up to US$530,000 for early-stage tech projects in Iceland.
- Because the Iceland FinTech industry is small, it is easy to network (the Iceland FinTech Cluster is an excellent example) and find programming and financial talent. On the downside, salaries are very high compared to other countries, and recruiting foreign talent is challenging.
- Unfortunately, some FinTech entrepreneurs in Iceland complain that the government lacks a clear vision on the sector, even though the government is promoting a digital society.
- Setting up an Icelandic LLC to provide FinTech services is straightforward. Typically, it is possible to invoice Clients within one month of starting the company registration process, and corporate bank account numbers are received in two months.
Healy Consultants Group PLC’s Iceland FinTech company services
Healy Consultants Group PLC will efficiently assist our Client to establish their Iceland FinTech business and meet all regulatory requirements. Our services include i) registering an Icelandic LLC ii) securing the appropriate licence, if applicable, from the likes of the FSA iii) opening a corporate bank account for the business iv) assisting our Client to recruit qualified staff v) assisting our Client to obtain visas for qualified staff and vi) assisting with finding office premises in Iceland and vii) assisting our Client’s company to secure funding from the TDF or private sources.
For more information on setting up an Iceland cryptocurrency business, see this page.