Iceland Company Formation
Iceland Company Formation – Register Your Offshore Company with BRIS Group Main Characteristics and the basic rules of Company registration in Iceland
BRIS Group provides professional Iceland company formation services for entrepreneurs and international investors seeking a strategic Northern European base. Establishing an Icelandic Private Limited Company (EHF) offers limited liability protection, access to the European Economic Area (EEA), and a favorable business environment. Our experts manage the full Iceland company registration process remotely, including corporate banking support, compliance, and ongoing administration, ensuring your company in Iceland is fully compliant and ready for European and international operations.
Start your Iceland company with BRIS Group today — trusted experts in global incorporation.
Your Gateway to a Prestigious and Transparent Offshore Jurisdiction
Iceland, known for its innovation, political stability, and transparency, is increasingly becoming a preferred jurisdiction for international entrepreneurs and investors seeking a reputable and secure business base. While not a traditional tax haven, Iceland company formation offers the perfect balance between offshore flexibility and onshore credibility — ideal for global businesses aiming for legitimacy, compliance, and European market access.
Why Choose Iceland for Company Formation?
Iceland provides an excellent environment for businesses that value transparency, financial stability, and access to the European Economic Area (EEA). With a well-established legal framework and modern corporate infrastructure, setting up a company in Iceland ensures both credibility and protection for shareholders.
🔍 Need advice?
Our experts can guide you through company formation options and help you select the most efficient structure for your goals.
Key Highlights of Iceland Company Formation
| Aspect | Details |
|---|---|
| Legal Structure | Private Limited Company (EHF) or Public Limited Company (HF) |
| Corporate Tax Rate | 20% (standard rate); 37.6% for partnerships |
| Ownership | 100% foreign ownership permitted |
| Registration Authority | Icelandic Companies Registry |
| Typical Formation Time | 2–4 weeks |
| Minimum Share Capital | ISK 500,000 (approx. €3,200) for EHF |
| Registered Office | Must be located in Iceland |
| EEA Access | Full access via European Economic Area membership |
Types of Companies Available for Non-Residents
Iceland offers several company structures suitable for foreign investors and non-residents:
1. Private Limited Company (EHF)
The most common structure. Offers limited liability and is ideal for small to medium-sized enterprises.
2. Public Limited Company (HF)
Suitable for large enterprises and those planning to list shares publicly.
3. Branch of a Foreign Company
Allows an existing international company to operate directly in Iceland.
4. Partnerships
Can be limited or general; however, note that partnerships are taxed differently (up to 37.6%).
Advantages of Iceland Company Formation for Non-Residents
| ✅ Key Benefit | 💬 Description |
|---|---|
| Prestige & Reputation | Iceland’s strong global reputation boosts credibility and trust. |
| Access to EU/EEA Markets | Iceland’s EEA membership enables trade access throughout Europe. |
| Stable Legal Framework | Transparent corporate governance aligned with EU standards. |
| Competitive Tax Environment | Moderate tax rates compared to most European jurisdictions. |
| Skilled Workforce | Highly educated, English-speaking professionals. |
| Modern Banking & Infrastructure | Well-developed financial system for international business. |
Considerations Before Forming a Company in Iceland
| ⚠️ Possible Challenge | 💬 Details |
|---|---|
| Higher Operating Costs | Iceland’s cost of living and business operation is higher than average. |
| Language | Official language is Icelandic (though English is widely used). |
| Compliance Complexity | Requires familiarity with local tax and reporting standards. |
| Geographical Location | Remote location can affect travel or logistics for some businesses. |
Requirements for Iceland Company Registration
To successfully register a company in Iceland, you’ll need:
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Company Name: Must be unique and approved by the Icelandic Companies Registry.
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Registered Office: A physical address in Iceland.
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Director Details: Minimum one director (can be non-resident).
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Shareholder Details: Minimum one shareholder (can be an individual or legal entity).
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Articles of Association: Outlining the company’s internal structure and operations.
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Proof of Identity: Valid identification for all directors and shareholders.
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Bank Account: A corporate account for share capital deposit and operations.
Step-by-Step Process for Iceland Company Formation
Step 1: Consultation & Planning
Discuss your business objectives with our experts to determine the best company structure.
Step 2: Company Name Reservation
Reserve a unique company name with the Icelandic Companies Registry.
Step 3: Document Preparation
We assist in drafting and verifying all required documents — including articles of association and shareholder agreements.
Step 4: Submission & Registration
File your application and supporting documents with the Companies Registry.
Step 5: Bank Account Opening
Open a business account with a reputable Icelandic or international bank.
Step 6: Tax Registration
Obtain a tax identification number from the Icelandic tax authorities.
Step 7: Final Incorporation
Receive your Certificate of Incorporation confirming your company’s legal status.
Timeframe for Company Formation in Iceland
Typically, company registration in Iceland takes 2–4 weeks.
Timeframes depend on document readiness, company type, and verification process by the Icelandic Companies Registry.
How BRIS Group Can Help You
Our professional team offers end-to-end assistance for non-residents forming a company in Iceland:
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Company structure consultation
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Name availability checks
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Preparation and filing of incorporation documents
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Registered office address in Iceland
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Bank account opening support
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Compliance and annual filing assistance
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Tax and legal advisory
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Ongoing business support and representation
Let BRIS Group handle the complexities — you focus on growing your global business.
Why Choose BRIS Group for Iceland Company Formation?
| 🌟 Our Strengths | 💬 What You Get |
|---|---|
| Local Expertise | Deep knowledge of Icelandic regulations and procedures. |
| Fast & Reliable Service | Streamlined formation process handled efficiently. |
| Transparent Pricing | No hidden fees — clear, upfront cost structure. |
| Personalised Guidance | Tailored advice for your unique business goals. |
| Ongoing Compliance | Continuous support for annual reports and filings. |
Start Your Iceland Company Today
Establishing your Icelandic company can open doors to Europe’s dynamic markets and a secure business environment.
📞 Contact BRIS Group today for expert advice and a seamless company formation experience.
We’ll ensure your Iceland company is structured for compliance, credibility, and long-term success
Contact us today: [email protected]
Questions & Answers
What are the benefits of forming a company in Iceland as a non-resident?
Forming a company in Iceland offers numerous benefits for non-residents. These include a stable economy, a strong infrastructure, and a favourable tax regime. Iceland has competitive corporate tax rates, and there are no capital gains taxes on foreign investments. Additionally, the country is strategically positioned for access to European markets, making it an attractive place for international business. With a straightforward company registration process and supportive governmental policies, non-residents can efficiently set up their businesses.
What are the requirements for non-residents to register a company in Iceland?
Non-residents looking to register a company in Iceland must fulfil certain requirements. These include appointing a local representative or registered agent with an address in Iceland. The minimum share capital for a private limited company (ehf) is ISK 500,000. Non-residents also need to provide identification and proof of address. It is advisable to have a business plan and financial projections ready to facilitate the registration process. Seeking assistance from legal experts or company formation services can streamline the process.
How long does the company registration process take in Iceland for non-residents?
The company registration process in Iceland for non-residents typically takes about 1 to 2 weeks, depending on the completeness of the submitted documentation and the specific type of company being formed. Ensuring all requirements are met and that the application is prepared accurately can expedite the process. Non-residents should also consider any additional time needed for securing a local representative and preparing necessary legal documents.
Can non-residents open a bank account in Iceland for their company?
Yes, non-residents can open a bank account in Iceland for their company. However, they will need to provide several documents, including proof of company registration, identification, and possibly tax identification numbers from their home country. It is advisable to choose a bank that is accustomed to dealing with non-resident clients, as they can better assist with the specific requirements and processes involved. Some banks may have additional services specifically tailored for foreign business owners.
What taxes should non-resident business owners be aware of in Iceland?
Non-resident business owners in Iceland should be aware of several tax obligations. The corporate tax rate is notably low at 20%, and there are no capital gains taxes on business profits for foreign entities. Additionally, VAT is applicable on goods and services, typically set at 24%. Non-residents may also need to comply with any tax treaties Iceland has with their home country to avoid double taxation. Consulting with a tax professional can provide clarity on specific obligations.
Is it necessary to hire a local lawyer or accountant for company formation in Iceland?
While it is not legally required to hire a local lawyer or accountant for company formation in Iceland, it is strongly recommended, especially for non-residents. Local professionals have expertise in navigating the legal and tax landscapes, ensuring compliance with Icelandic regulations. They can assist in preparing documentation, facilitating the registration process, and managing ongoing accounting and tax obligations. This support can significantly reduce the risk of mistakes and save time.
Learn more: Visit our Full Frequently Asked Questions (FAQ) page
or contact our tax and company formation team at
1. What is Corporation Tax in Iceland?
Corporation tax in Iceland is set at a flat rate of 20% on the profits of companies. This rate applies to both domestic and foreign corporations operating in the country. The corporate tax is calculated on the net income, allowing for deductions of business expenses.
2. How is Personal Income Tax structured in Iceland?
Personal income tax in Iceland is progressive, with rates ranging from 22.5% to 31.8% as of 2023. The tax is imposed on both earned income and investment income. Additionally, municipal taxes can add approximately 14.5%, leading to a total effective rate of up to 46.3%.
3. What is the VAT rate in Iceland?
The standard VAT rate in Iceland is 24%, while a reduced rate of 11% applies to certain goods and services, such as food and accommodation. Businesses must register for VAT if their annual turnover exceeds ISK 2 million.
4. How are Dividends taxed in Iceland?
Dividends in Iceland are subject to a withholding tax of 20%. This applies to dividends distributed to both residents and non-residents. However, tax treaties with other countries may reduce the withholding tax rate for non-residents.
5. What other taxes are imposed in Iceland?
In addition to the main taxes, Iceland imposes various other taxes, including capital gains tax at a rate of 22%, property tax, and payroll taxes. Furthermore, individuals may face municipal taxes, contribution to pension funds, and specific environmental taxes, depending on their activities.
or contact our tax and company formation team at
This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.