Iceland


Inhabited by Norwegian and Celtic (Scottish and Irish) immigrants during the late 9th and 10th centuries A.D., Iceland boasts the world’s oldest functioning legislative assembly, the Althing, established in 930. Independent for over 300 years, Iceland was subsequently ruled by Norway and Denmark. Fallout from the Askja volcano of 1875 devastated the Icelandic economy and caused widespread famine. Over the next quarter century, 20% of the island’s population emigrated, mostly to Canada and the US. Limited home rule from Denmark was granted in 1874 and complete independence attained in 1944. Iceland became a member of NATO on 30 March 1949. Among NATO members, Iceland is the only one with no standing army. Industrialization of the fisheries and aid from the Marshall Plan brought prosperity in the years after World War II. The economy diversified greatly after the country joined the European Economic Area in 1994. Iceland began accession negotiations with the EU in July 2010; however, public support has dropped substantially because of concern about losing control over fishing resources and in reaction to worries over the ongoing Eurozone crisis.

Service packages

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Service item Express Standard Optimum
Company registration
Legal address per year
Secretarial services for the first year
Fees and duties for the first year
Apostilled bound set of incorporation documents
Compliance fee
Nominee service per year
Bank Account Pre-approval
Price

6 000 USD

6 000 USD

6 500 USD

I want to order «»

Contact method: and / or

Core Services

6 000 USD

— Incorporation

including incorporation tax, state registry fee, including Compliance fee

Included

— Annual government fees

Stamp Duty and Registrar of Enterprises incorporation fee

2 000 USD

— Corporate legal services

including registered address and registered agent, NOT including Compliance fee

150 USD

—Delivery of documents by courier mail

DHL or TNT, at cost of a Courier Service

500 USD

— Apostilled set of Statutory documents

Optional services

No

Nominee Director

Paid-up “nominee director” set includes the following documents

No

Nominee Shareholder

Paid-up “nominee shareholder” set includes the following documents

Related services

Tax Certificate

Company’s tax residence certificate for access to double tax treaties network

Certificate of Good Standing

Document issued by a state agency in some countries (Registrar of companies) to confirm a current status of a body corporate. A company with such certificate is proved to be active and operating.

Certificate of Incumbency

Compliance fee

Compliance fee is payable in the cases of: renewal of a company, liquidation of a company, transfer out of a company, issue of a power of attorney to a new attorney, change of director / shareholder / BO (except the change to a nominee director / shareholder)

150 USD

Basic

simple company structure with only 1 physical person

50 USD

For legal entity in structure under GSL administration

additional compliance fee for legal entity in structure under GSL administration (per 1 entity)

100 USD

For legal entity in structure not under GSL administration

additional compliance fee for legal entity in structure NOT under GSL administration (per 1 entity)

350 USD

For client with high risk Status

Cost of incorporation, including first year servicing 6000
Cost of annual service, starting from the second year 2000
Open account in 26780
Incorporation timescale for a turnkey company 7 days
Country 26701

General information shortly

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Total area Population Capital Unemployment Corruption perceptions index rank
103.125 sq. km 321.857 (2013) Reykjavik 5% (2013) 12 (2013)
Location Northern Europe
National currency Icelandic krona
Conditional reduction of currency ISK
Against USD 112.78
Climate, average max and min t° Temperate; moderated by North Atlantic Current; mild, windy winters; damp, cool summers; avg. maximum temperature (July) +12°; avg. minimum temperature (January) -1°
Time difference from Moscow - 4 hours
Dialing code +354
State language Icelandic
Ethnic groups Icelandic 93.44%, Polish 2.83%, and others 3.73%
Literacy rate 99%
Credit rating BBB-
Government type Parliamentary republic
Executive branch Prime Minister and Cabinet of Ministers appointed by the Prime Minister
Legislative branch unicameral Parliament Althing (63 members)
Judicial branch Supreme Court, and eight district courts
GDP per capita rank 17 (2013)

Corporate info

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Shelf companies permitted Legal system Incorporation timescale for a turnkey company Cyrillic alphabet permitted in company name Local registered office
Yes civil law 7 days No Yes
Types of entity sole proprietorship; partnership; cooperative society; private limited company; public limited company; branch of a foreign company
Incorporation timescale for a new company 1 day
Company suffix Einkahlutafelag or Ehf
Sensitive words 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 industrie
Local registered agent Yes
Information to be kept at the registered office register of shares
Seal required, type of seal not required
Redomiciliation (to, from) permitted not permitted

Director and secretary

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Minimum number of directors Residency requirements for directors Corporate directors permitted Disclosure to local agent Disclosure to public
1 Yes (at least one sould be EEA resident) No Yes Yes
Directors’ meetings/frequency/location Yes / no requirements
Company secretary required No
Residency requirements for a secretary No
Qualified secretary required No
Corporate secretary permitted No

Shareholder and beneficiary

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Minimum number of shareholders Residency requirements for shareholders Corporate shareholder permitted Disclosure to local agent Disclosure to public
1 Yes Yes Yes Yes
Meetings/frequency/location Yes / annually / anywhere
Beneficiary info disclosure to No

Shares and share capital

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Minimum authorized share capital Minimum issued share capital Minimum paid share capital Authorized capital payment deadlines Bearer shares permitted
500000 500000 500000 Upon registration No
Issued capital payment deadlines Upon registration
Standard currency Icelandic krona
Standard authorized share capital 500000
Standard par value of shares 1
Shares with no par value permitted No

Taxes

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Min. rate for corporate tax Capital gains tax VAT Withholding tax Exchange control
20% Regular rate 24% 20%/12%/20% Yes
Personal tax 33-46%
Corporate tax (in detail) The corporate income tax rate is a flat rate of 20%.
Capital gains tax. Details Capital gains are subject to income tax.
VAT. Details The standard VAT rate is 24%. A preferential VAT rate of 11% applies to certain goods and services.
Other taxes Real property tax; Inheritance tax; Social security contribution; Financial activities tax
Government fee No
Stamp duty 0,8-1,6%

Accounts

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Requirement to file accounts Publicly accessible accounts Audit required Requirement to file Annual Return Publicly accessible Annual Return
Yes Yes No Yes Yes
Requirement to prepare accounts Yes
Double tax treaties network 42
Tax Exchange Information Agreement network 50
OECD member Yes
Offshore/onshore status according to the RF laws No

GENERAL INFORMATION

General

Iceland is a Nordic European island country in the North Atlantic Ocean.
Total area of the country is 103.125 sq. km. The population is 321.857 people (2013). Among ethnic groups are Icelandic (93.44%), Polish (2.83%), and others (3.73%).
The capital is Reykjavik.
The official language is Icelandic.
The currency is Icelandic krona (ISK). 1 USD is equal to 112.78 ISK.
Climate of Iceland is temperate; moderated by North Atlantic Current; mild, windy winters; damp, cool summers; avg. maximum temperature (July) +12°; avg. minimum temperature (January) -1°
Iceland is one of the world’s most volcanically and geologically active countries.
Time difference with Moscow is -4 hours.
Literacy rate is 99%.
Calling code is +354.

History

Inhabited by Norwegian and Celtic (Scottish and Irish) immigrants during the late 9th and 10th centuries A.D., Iceland boasts the world’s oldest functioning legislative assembly, the Althing, established in 930. Independent for over 300 years, Iceland was subsequently ruled by Norway and Denmark. Fallout from the Askja volcano of 1875 devastated the Icelandic economy and caused widespread famine. Over the next quarter century, 20% of the island’s population emigrated, mostly to Canada and the US. Limited home rule from Denmark was granted in 1874 and complete independence attained in 1944. Iceland became a member of NATO on 30 March 1949. Among NATO members, Iceland is the only one with no standing army.
Industrialization of the fisheries and aid from the Marshall Plan brought prosperity in the years after World War II. The economy diversified greatly after the country joined the European Economic Area in 1994. Iceland began accession negotiations with the EU in July 2010; however, public support has dropped substantially because of concern about losing control over fishing resources and in reaction to worries over the ongoing Eurozone crisis.

Government Type

Iceland is a parliamentary republic.
The head of state is the President of Iceland, whose powers are limited to ceremonial functions. The president is elected to a four-year term by universal adult suffrage. The constitution does not limit the number of terms the president is allowed to serve.
Executive power is represented by the Government, headed by the prime minister. The prime minister is appointed by the president after general elections to Althing along with the cabinet. However, this process is usually conducted by the leaders of the political parties who decide among themselves after discussions which parties can form the cabinet and how its seats are to be distributed (under the condition that it has a majority support in Althing).
Legislative power is vested in the modern parliament, called "Althing", founded in 1845 as an advisory body to the Danish king. The Althing is composed of 63 members, elected by popular vote every 4 years unless it is dissolved sooner. Members of the Althing are elected on the basis of proportional representation from six constituencies. Until 1991, membership of the Althing was divided between a lower and upper house but this was changed to a fully unicameral system.
Judiciary power consists of the Supreme Court, also acting as Constitutional Court, and eight district courts. The judicial system of Iceland is very similar to that of Norway.

Economy

Until the 20th century, Iceland was among the poorest countries in Western Europe. Currently, it remains one of the most developed countries in the world. For a long time Iceland was a country of a monocultural economy and the main sources of income were fishery and fish-processing. However, over the last years state economy has developed intensively and involved new sectors. For example, the powerful incentive was given to a development of renewable ecological energy. The tourism sector is expanding, especially in ecotourism and whale-watching. On average, Iceland receives around 1.1 million visitors annually, which is more than three times the native population. Iceland’s agriculture industry, accounting for 5.4% of GDP, consists mainly of potatoes, green vegetables (in greenhouses), mutton and dairy products.
In the years 2003-2007, following the privatization of the banking sector, Iceland moved from being a nation best known for its fishing industry toward having an economy based on financial services and investment banking. Besides that, the Government declares a program of launching and development of aluminum factories. Among other increasingly developing sectors are biotechnologies and IT sector.
It was quickly becoming one of the most prosperous countries in the world before getting hit hard by a major financial crisis. The crisis resulted in the greatest migration from Iceland since 1887, inflation escalation, growth of unemployment, decline in GDP, and krona’s fall. By 2012 Iceland’s economy has stabilized following currency controls and cutbacks in government services, although full economic recovery remains a long-term concern.

CORPORATE INFORMATION

Legal System

Iceland has a civil law legal system and thus Icelandic law is characterized by written law.
Major sources of law in Iceland include the Constitution, statutory legislation, and regulatory statutes. Other legal resources are precedent and customary law.

Types of Entity

The principal forms of business organization in Iceland are:
  • Sole proprietorship;
  • Partnership;
  • Cooperative society;
  • Private limited company;
  • Public limited company;
  • Branch of a foreign company.
The most common structure is the private limited company.

REGISTRATION

Company Name

There is a range of requirements to the company name in Iceland:
  • All company names must end with the following words or their abbreviated forms: "einkahlutafélag" (Private Limited Company) or the abbreviation "ehf".;
  • It should not be identical to or too similar to a name already appearing on the register of companies;
  • It shall be in conformity with the Icelandic linguistic system;
  • It cannot include a family name;
  • It should not be misleading or give wrong information, such as implying an operation that is not included in the company´s purpose;
  • It cannot be too general, such as “Bank” or “Architect” unless a more specific name accompanies it;
  • It cannot include the name of another person or another person´s property;
  • It should not contain the following words: 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.

Registration

The following steps are required to incorporate a private limited company in Iceland:
  1. Search for company name online – less than 1 day: The company name database can be accessed at the Internal Revenue Web site (www.rsk.is).
  2. Deposit initial capital in bank account – 1 day: The initial capital can be deposited in any commercial bank.
  3. Apply for registration with Register of Limited Companies (Director of Internal Revenue) – 1 day: To apply for registration with the Register of Limited Companies, the company must provide five documents: 1) Notification of incorporation form; 2) Agreement of incorporation; 3) Record of the meeting of incorporation; 4) Articles of association; 5) Affidavit on payment of share capital, issued by a certified public account. The register is also in charge of advertising the incorporation notice in the Official Gazette, the official journal. The total registration fee is ISK 130,500, which includes the company identification number (ISK 5,000), and the fee for publishing the notification in the Official Gazette (ISK 1,000 including VAT). Model incorporation documents and forms (in Icelandic) can be found on the Ministry of Industry and Innovation (http://eng.atvinnuvegaraduneyti.is/). The notification of incorporation form can be downloaded at no cost from the Internal Revenue Office Web site (www.rsk.is). Signed documents can be sent via email to the Register of Limited Companies (Director of Internal Revenue).
  4. Obtain VAT number from Director of Taxes – 1 day: Companies that plan to sell goods or services valued at more than ISK 1000,000 a year are required to collect and report VAT.
  5. Notify tax authorities of employment of workers – 1 day: The notification can be filed through http://www.skattur.is with a web key.
Upon the receipt of the required documents the formation of a new company in Iceland takes 5-7 days.

Restrictions on Activities and Foreign Investment

Special permission is required for banking, insurance, and financial services.
Non-residents may invest in business enterprises in Iceland with some limitations, which are stipulated in the Act no. 34/1991 on Investment by Non-Residents in Business Enterprise or in specific legislation, and upon the fulfillment of other conditions and acquisition of licenses required by law. Under the European Economic Area Agreement, investment in Iceland by EEA residents is in principle unrestricted, but few exceptions were negotiated in specific fields considered to be of national political importance.
Non-Residents (including EEA Residents) cannot conduct fishing operations within the Icelandic fisheries jurisdiction or own or run enterprises engaged in fish processing. Besides, only Icelandic citizens and other Icelandic entities, as well as individuals and legal entities domiciled in another member state of the European Economic Area, are permitted to own energy exploitation rights relating to waterfalls and geothermal energy for other than domestic use. The same applies to enterprises, which produce or distribute energy.

Local Registered Office

An Icelandic company must have a registered office in Iceland.
Register of shares must be kept at the registered office at all times.

Seal

Company seal is not required.

Redomiciliation

The redomiciliation of companies to or from Iceland is not permitted.

Dissolution

The dissolution of a private limited liability company is prescribed in detail in the relevant Acts. Shareholders controlling a minimum of two-third of a company's total share capital can take a decision at a shareholders' meeting to the effect that the company shall be dissolved. The private dissolution requires the appointment of a special winding up committee, which publishes a call to creditors in the Legal Gazette.
Special rules apply for the dissolution of financial undertakings as defined in the Act respecting Financial Undertakings No 161/2002.

COMPANY STRUCTURE

Directors

The Board of Directors of a Private Limited Company in Iceland shall consist of at least three persons, unless there be four or fewer shareholders, then it is sufficient that the Board consist of one or two persons.
Directors should be natural persons.
At least half of the Directors shall be resident in Iceland. In case of one Director the condition of residence applies to him and it also applies to one out of two Directors. The Minister or he to whom he conveys his power may grant an exemption from the condition. Condition of residence does, however, not apply to the citizens of the States being parties to the Agreement on the European Economic Area, provided that the citizens concerned be resident in an EEA State.
The Board of Directors should be elected by a shareholders’ meeting.
It is possible to hold Board of Directors' meetings with the assistance of electronic media as far as this is in conformity with the implementation of the tasks of the Company's Board of Directors.

Secretary

Icelandic private limited company is not required to have a company secretary.

Shareholders

Each Icelandic company should have at least one shareholder. A single party may establish a private limited company and be a shareholder. In such instances a single principal may constitute the board of directors and then there is no need for holding board or shareholder meetings as is else the case. At least one of the founders must reside in Iceland or be both a citizen and resident of an EEA or OECD country.
The identity of the founder or founders of a private limited company; the identity of shareholders that own more than 10% of total shares in a private limited company; and if all the shares in a private limited company are transferred to a single shareholder, the identity of that shareholder must be disclosed to the Registry.
An Annual General Meeting shall be held as Company Articles of Association determine, but yet no less than once a year and never later than eight months as of the end of each fiscal year. Annual accounts and Auditors´ or Inspectors´ report shall be submitted at an Annual General Meeting.
A shareholders´ meeting shall be held at a Company´s domicile, unless Company Articles of Association stipulate that a meeting shall or may be held at another place. It is permissible to hold a shareholders´ meeting elsewhere if that is necessary due to specific reasons.
A shareholders´ meeting may decide that a shareholders´ meeting will be held electronically only.

Beneficiary

Despite the fact that many jurisdictions are discussing an issue of introducing an open register of beneficiaries, there is no such a register yet, including Iceland. This means that beneficiaries’ details do not appear on a public profile. Generally, service providers including firm specializing in company formation, trust managers, lawyers, and accountants, keep beneficiaries’ information in strict confidentiality. It can only be disclosed to regulatory authorities (e.g. during examinations for its existence) or in compliance with a court order.

Share Capital and Shares

Share capital of an Icelandic company should be denominated in Icelandic kronas. A private limited company must have an initial capital of ISK 500,000, which has to be paid before registration. In case of failing to pay the capital, the company will not be registered.
Standard amount of the share capital is ISK 500,000.
Private limited company may issue share certificates. Each company should keep at its registered office a register of shares and all shareholders and the authorities should have access thereto and may acquaint themselves with the contents thereof.
Bearer shares and shares with no par value are not allowed.

TAXATION

Personal Income Tax

Residents pay tax on their worldwide income, non-residents pay tax on income from sources in Iceland.
Income tax is levied at progressive rates:
  • Income up to ISK 4,042,995 is taxed at the rate of 20.6%
  • Income from ISK 4,042,995 to 11,350,472 is taxed at the rate of 22.75%
  • Income over ISK 11,350,472 is taxed at the rate of 31.8%
In addition, municipal tax is paid at rates ranging from 12.44% to 14.52%, depending on the municipality.
Capital gains are taxed at 22%.

Corporate Income Tax

Corporate income tax is paid by resident companies on their worldwide income, by non-resident companies on income from sources in Iceland.
The corporate income tax rate is 20%.
Capital gains are subject to corporate income tax. There are exemptions for profit from the sale of shares and dividend income. Interest income from bank deposits and certain other financial instruments is taxed at the rate of 22%.

Social Security Contributions

Employers pay:
  • Social insurance contribution of 6.35% (in some cases, other rates apply).
  • Pension fund contribution of 11.5%. An additional 2% is paid to private pension funds if the employee himself makes a 4% contribution to these funds.
  • Contribution to the rehabilitation fund of 0.1%.
Employees pay:
  • Pension fund contribution of 4%. An additional 4% may be paid to mandatory or voluntary pension funds (deductible for tax purposes).
  • Contribution to the elderly fund – a fixed sum payable when a certain income level is exceeded.

Financial Activities Tax (FAT)

Financial institutions, including insurance companies, pay a 5.5% tax on all salary payments to their employees.
An additional 6% is levied if the total of salary payments exceeds ISK 1 billion.

VAT

The standard VAT rate is 24%.
A reduced VAT rate of 11% applies to certain goods and services.

Withholding Tax

Payment of dividends to a non-resident company is taxed at 20%; payment to a non-resident individual is taxed at 22%.
Companies from EEA countries can then apply for a tax refund.
Payment of interest is taxed at 12%.
Payment of royalties is taxed at 20% (if to companies) and at 36.94 - 46.24% (if to individuals).
The tax may be withheld on certain other income payments.

Property Taxes

Real estate is subject to an annual municipal tax.

Inheritance Tax

Inheritance tax is levied at the rate of 10%.
There may be non-taxable thresholds.
The assets left to spouses are not subject to inheritance tax.

Stamp Duty

Stamp duty applies to transactions that involve real estate and ships.
The rate is 0.8% for individuals and 1.6% for legal entities.

CFC Rules

The CFC rules apply when owning or controlling, directly or indirectly, more than a 50% share in a company from a low-tax (less than 2/3 of the Icelandic tax rate) jurisdiction.
The CFC rules do not apply if the company is located in a country that has a double tax treaty with Iceland containing a proper information exchange clause and its income is not primarily financial income. Besides, the CFC rules do not apply to a company incorporated and operating in an EEA country if Icelandic tax authorities can obtain information about the company under a relevant treaty.

Double Tax Agreements

Iceland has exchange of information relationships with 103 jurisdictions through:
  • 42 DTCs: Albania, Austria, Barbados, Belgium, Canada, China, Croatia, Czech Republic, Estonia, France, Germany, Greece, Hungary, India, Ireland, Italy, Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Switzerland, Ukraine, United Kingdom, USA, Vietnam.
  • 50 TIEAs: Andorra, Anguilla, Antigua and Barbuda, Aruba, Bahamas, Bahrain, Belize, Bermuda, Botswana, Brunei Darussalam, British Virgin Islands, Cayman Islands, Cook Islands, Costa Rica, Curacao, Denmark, Dominica, Faroe Islands, Finland, Gibraltar, Greenland, Grenada, Guatemala, Guernsey, Hong Kong, Isle of Man, Jamaica, Jersey, Liberia, Liechtenstein, Macau, Marshall Islands, Mauritius, Monaco, Montserrat, Niue, Panama, Qatar, Saint Kitts and Nevis, Saint-Lucia, Saint Vincent and Grenadines, Samoa, San Marino, Seychelles, Sint Maarten, Sweden, Turks and Caicos Islands, United Arab Emirates, Uruguay, Vanuatu. Convention on Mutual Administrative Assistance in Tax Matters.

Foreign Exchange Control

Capital controls were introduced in 2008 following the banking crisis.
Most of the restrictions have been lifted by now, but some remain: on cross-border transfers in ISK, derivatives trading for purposes other than hedging, and foreign exchange transactions without the intermediation of financial institutions.

ACCOUNTS

Accounting Records

Under general Icelandic legislation on business and commerce, an enterprise must keep books of accounts and records that reflect its rights and obligations in Icelandic currency. The text of the books must be in Icelandic, Danish or English.
However, business enterprises registered in Iceland, with the main part of their income from foreign sources, can apply to keep their books of accounts and records in a foreign currency by meeting one or more of the following requirements:
  • Enterprises whose main activities are abroad or which form part of a foreign corporate group
  • Enterprises, which own foreign subsidiaries or stock or a part in foreign enterprises and whose main business is with these subsidiaries and foreign enterprises
  • Enterprises whose main activities are in Iceland but conduct a considerable part of their business in another currency than the Icelandic currency
  • Enterprises, which have the majority of their investments and related debts in foreign currencies.
The books of accounts and records, including source documents and incoming and outgoing correspondence should be retained in Iceland for at least seven years and annual accounts for twenty-five years. However, the documents may be retained at a foreign permanent establishment for up to six months and must be available to Icelandic authorities upon request.
The books may be kept in any form, including mechanized and electronic systems, and all methods of tracing transactions between accounts and documentation should be retained.

Financial Statements

Every company which resides and operates in Iceland must submit annual accounts that comply with statutory accounting rules and disclosures, and reflect a true and fair view of the company’s assets, liabilities, results and financial position. Presentation is modelled upon standard EU requirements.
Annual accounts should be filed within eight months from the end of the year accounted for. Annual financial reports must include a report by the board of directors, the auditor’s report, an income statement, a balance sheet, a cash flow statement or a statement showing application of funds, and explanatory notes.
The formal statement of annual accounts must be expressed in Icelandic krónur. However, corporations can apply to keep their books of accounts and records and express their statement of annual accounts in a foreign currency. The text of the statement of annual accounts must be in Icelandic, Danish or English.
In general, the same requirements apply to the information to be included in the annual accounts of all entities obliged to follow the instructions laid down under Act No. 3/2006. However, an entity, which is not registered on the Nasdaq OMX and is under certain size limits, may file abbreviated statements at the Register of Annual Accounts, consisting of an abridged income statement, a balance sheet and abridged explanatory notes. To qualify for this, the company must fulfil at least two of the three conditions listed below:
  • Total assets amount to ISK 300 million or less.
  • Operating income amounts to ISK 600 million or less.
  • Total man-years within each fiscal year are 50 or less.

Audit

The audit requirements are set out in the Annual Accounts Act. Entities subject to the Annual Accounts Act must appoint at least one state authorized public accountant, an audit firm or two accountants.
Entities, which meet all the following conditions, do not have to meet the audit requirements:
  • Staff members are less than 50.
  • Annual turnover is less than 400 million ISK.
  • Equity capital is less than 200 million ISK.
Banks, securities companies, insurance companies, pension funds, travel agencies and entities listed on the Nasdaq OMX have mandatory audit requirements.

Annual Return

Generally speaking, Annual Return is a short review on the current state of the company, which is prepared by the company secretary annually. As a rule it includes the following information:
  • Incorporation information (registration date, registered address);
  • Information about directors and their resignation;
  • Information about secretaries and their resignation;
  • Information about registered capital, nominal value of shares and amount of issued shares;
  • Information about shareholders and share transfer.
Icelandic companies are required to prepare Annual Return. Annual return is publicy accessible.

Tax Returns

The tax year is the calendar year, but there may be exceptions.
The usual deadline for filing a tax return is 31 March of the following year. Advance tax payments are due during the year, the final tax is paid in two instalments – by 1 November and 1 December of the next year.

International law relations

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Party to the Hague Convention (Apostille) Legal system Double tax treaties network OECD member Offshore/onshore status according to the RF laws
Yes civil law 42 Yes No

Public authorities and legal acts

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List of laws and regulations
Act name Scope of law
Act No. 138/1994 respecting Private Limited Companies private limited companies
Act respecting Public Limited Companies No. 2/1995 public limited companies
Act No 33/1999 respecting Foundations Engaging in Business Operations foundations
Act No. 161/2002 on financial undertakings financial undertakings
Act No. 90/2003, Income Tax Act income tax
Act No. 94/1996 on Withholding of Tax on Financial Income withholing tax on financial income
The Value Added Tax Act No. 50/1988 VAT
Tax treaties entered Albania, Austria, Barbados, Belgium, Canada, China, Croatia, Czech Republic, Estonia, France, Germany, Greece, Hungary, India, Ireland, Italy, Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Switzerland, Ukraine, United Kingdom, USA, Vietnam
Tax Exchange Information Agreement (TEIA) Andorra, Anguilla, Antigua and Barbuda, Aruba, Bahamas, Bahrain, Belize, Bermuda, Botswana, Brunei Darussalam, British Virgin Islands, Cayman Islands, Cook Islands, Costa Rica, Curacao, Denmark, Dominica, Faroe Islands, Finland, Gibraltar, Greenland, Grenada, Guatemala, Guernsey, Hong Kong, Isle of Man, Jamaica, Jersey, Liberia, Liechtenstein, Macau, Marshall Islands, Mauritius, Monaco, Montserrat, Niue, Panama, Qatar, Saint Kitts and Nevis, Saint-Lucia, Saint Vincent and Grenadines, Samoa, San Marino, Seychelles, Sint Maarten, Sweden, Turks and Caicos Islands, United Arab Emirates, Uruguay, Vanuatu. Convention on Mutual Administrative Assistance in Tax Matters
List of state regulatory authorities
Government Offices of Iceland http://www.government.is/
Ministry of Finance and Economic Affairs http://eng.fjarmalaraduneyti.is/
Ministry of Industry and Innovation http://eng.atvinnuvegaraduneyti.is/
Iceland Chamber of Commerce http://chamber.is/
Directorate of Internal Revenue https://www.rsk.is/english/individuals/
Directorate of Customs https://www.tollur.is/english/
Directorate of Labor https://vinnumalastofnun.is/en
Directorate of Immigration http://www.utl.is/index.php/en/
Financial Supervisory Authority https://www.fme.is/
Invest in Iceland http://www.invest.is/
Innovation Center Iceland http://www.nmi.is/english
Icelandic Bar Association http://www.lmfi.is/english/
Environment Agency http://www.ust.is/the-environment-agency-of-iceland/
Occupational Safety and Health Administration http://www.vinnueftirlit.is/english/
Pension Funds Association https://www.lifeyrismal.is/is/english/good-to-know
Central Bank of Iceland https://www.cb.is/

    Юридический партнер обзора:

    Jonsson & Hall Law Firm

    Jonsson & Hall was established in 1975. Jonsson & Hall is a personal practice and is constantly rated as one of Iceland's highest standard firms, by referrals such as Chambers and European Legal 500. The firms attorneys are constantly involved in high profile court cases and the firms litigative strength is second to none. The firm has a total staff of 17 of which 12 are attorneys. Partners of the firm number six. The attorneys share a wealth of experience covering all the needs of a client. Jonsson & Hall's clientele is broad in scope, ranging from individuals to Fortune 500 companies, from unions to government entities and everything in between.

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    Regards, GSL Law & Consulting Lawyer, Head of UK GSL office Aniko Sebok

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    Valerija Filipova

    GSL Law & Consulting Lawyer, London Office

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    Office phone:

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    — In the near future you will receive a detailed answer to it. Typically, the response rate does not exceed 24 hours.

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    Regards, GSL Law & Consulting Lawyer, London Office Valerija Filipova

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