Review of Iceland

Service packages Review Legislation Tax System

Corporate info

Legal system
civil law
Types of entity
sole proprietorship; partnership; cooperative society; private limited company; public limited company; branch of a foreign company
Shelf companies permitted
Yes
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
Cyrillic alphabet permitted in company name
No
Local registered office
Yes
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
Your Consultant
Alexander Alekseev

Managing Partner of GSL Law & Consulting

Director and secretary

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

Shareholder and beneficiary

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

Shares and share capital

Minimum authorized share capital
500000
Minimum issued share capital
500000
Minimum paid share capital
500000
Authorized capital payment deadlines
Upon registration
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
Bearer shares permitted
No

Taxes

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

Accounts

Requirement to prepare accounts
Yes
Requirement to file accounts
Yes
Publicly accessible accounts
Yes
Requirement to file Annual Return
Yes
Publicly accessible Annual Return
Yes
Audit required
No

General information shortly

Location
Northern Europe
Total area
103.125 sq. km
Population
321.857 (2013)
Capital
Reykjavik
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%
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.
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
Unemployment
5% (2013)
GDP per capita rank
17 (2013)
Corruption perceptions index rank
12 (2013)

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