10 steps to incorporating in Iceland
- Consultation phase: Prior to starting the Iceland company incorporation process, we discuss our Client’s aims and requirements for the new company and plan the optimal structure for the business. Healy Consultants also sets out i) potential licensing requirements and ii) desirable amendments to the company’s statutes at this stage.
- Name, ownership structure and share allotment: Select a name for the company and designate up to 50 shareholders for the company. Companies and individuals may be shareholders, but at least one must be a resident of an EEA or OECD country. Determine the number of shares to be issued to each shareholder and the price to be paid for each share;
- Director selection: Name your company’s directors, at least one of whom must be resident in an EEA or OECD country. Corporate directors are not permitted in Iceland;
- Registered office: All companies in Iceland must file an address with the tax authorities. This address will be used for all official correspondence, and to make the company’s statutory records available for inspection. Either use the address your team will occupy in Iceland or make use of Healy Consultants’ registered address service, which we include as standard in our service offering;
- Company statutes: The shareholders sign the company’s statutes, also known as its constitution or foundation deed, in front of a public notary. This document governs the management of the business. This is the civil law equivalent of the memorandum and articles of association found in common law jurisdictions such as the United Kingdom. Icelandic company law provides a standard document that will suit most of our Clients’ needs, and Healy Consultants’ legal team can draft changes to fit your specific requirements. This document is available only in Icelandic and may be found on the website of the Directorate of Internal Revenue;
- Preliminary bank account opening: Icelandic companies require a deposit account with a local bank into which the share capital can be paid before incorporation. With Healy Consultants’ help, this can be achieved without you needing to travel;
- Planning phase: At this point, we take all of the information provided to plan the process in detail from start to finish, including i) company incorporation ii) tax registration iii) corporate bank account opening and iv) obtaining applicable licences. Engagement planning is a key part of Healy Consultants’ service, increasing transparency, setting Client expectations and minimising disruption to project completion;
- Document preparation: Next, Healy Consultants gathers all of the documents required to complete the incorporation, assisting our Clients to complete and authenticate all necessary documents.
- Document submission: Once the required documentation is complete, Healy Consultants informs the Directorate of Internal Revenue;
- Entry in the commercial registry: Within one week of receiving the incorporation notification, the company will be entered into Iceland’s commercial register. Following Iceland company incorporation, Healy Consultants immediately emails our Client with the commercial registry extract. Icelandic companies do not have certificates of incorporation;
- Bank account conversion: Once incorporated, the company can apply to its bank to convert its deposit account into an operational corporate bank account. With Healy Consultants’ help, this can be achieved without you needing to travel;
- Additional registrations: The company can now register for VAT, apply for employee visas and obtain government grants and incentives;
- Licensing: Some business activities require licences in Iceland. Healy Consultants regularly assists Clients with navigating the Icelandic regulatory environment and obtaining the necessary licences;
- Engagement completion: Following the receipt of all necessary approvals and documents, Healy Consultants couriers a full company kit to our Client, including original corporate documents, unopened bank correspondence and a Client feedback survey.