Iceland is a beautiful country located in the North Atlantic Ocean with a growing economy and favorable business environment. Registering a business in Iceland can be a simple and straightforward process if you follow the necessary steps. This article will guide you on how to register your business in Iceland.
Table of Contents
Step 1: Choose Your Business Structure
The first step in registering a business in Iceland is to decide on the structure of your business. The most common business structures in Iceland are limited liability companies (LLCs) and sole proprietorships. LLCs are separate legal entities that offer personal liability protection for the owners, while sole proprietorships are owned and operated by a single individual who is personally liable for the business’s debts.
Step 2: Choose Your Business Name
After deciding on the structure of your business, you need to choose a unique name for your company. The name you choose must not be similar to any existing business names in Iceland. You can check the Icelandic Company Registry to ensure that your chosen name is available.
Step 3: Register Your Business
with the Icelandic Company Registry To register your business in Iceland, you need to submit an application to the Icelandic Company Registry. The application should include the following documents:
Articles of Association
Statement of Shareholders
Memorandum of Association
Declaration of Directors
The Articles of Association outline the rules and regulations that govern the operations of your business. The Statement of Shareholders lists the names of all the shareholders in the company and their respective shares. The Memorandum of Association contains information about the company’s purpose and objectives, while the Declaration of Directors lists the names and addresses of the company’s directors.
Step 4: Obtain a Business ID Number and Register for Taxes
After your business is registered with the Icelandic Company Registry, you will receive a Business ID number. This number is unique to your business and is used to identify your business for tax purposes. You will also need to register for taxes with the Icelandic tax authorities.
Step 5: Register for VAT (Value-Added Tax)
If your business is going to sell goods or services in Iceland, you will need to register for Value-Added Tax (VAT). This tax is levied on the value added to goods and services at each stage of production and distribution. The current VAT rate in Iceland is 24%.
Step 6: Obtain Licenses and Permits
Depending on the nature of your business, you may need to obtain licenses and permits from various government agencies. For example, if you plan to sell alcohol, you will need to obtain a license from the Icelandic Directorate of Health.
Generis Global can help you with your business in Iceland If you are planning to register a business in Iceland, Generis Global can help you with the legal part of your business journey in this country. Our team of experienced lawyers can assist you with every step of the registration process, from choosing the right business structure to obtaining licenses and permits. Contact us today to learn more about how we can help you succeed in Iceland.