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Iceland Company Formation

Establish your business in the land of fire and ice. Benefit from full EEA single-market access, a competitive 20% corporate tax rate, and 100% renewable energy in one of the world's most stable economies.

The Icelandic Advantage

Key benefits of choosing Iceland for your international business operations.

Competitive 20% Corporate Tax

A flat 20% corporate income tax rate, highly competitive among OECD and EEA jurisdictions.

Full EU Single Market Access

As a European Economic Area (EEA) member, an Icelandic company enjoys seamless access to the EU single market for goods, services, capital, and people.

100% Renewable Energy

Iceland runs almost entirely on geothermal and hydroelectric power, offering some of the world's lowest-cost, cleanest energy — ideal for data centres and energy-intensive industries.

Strategic Mid-Atlantic Location

Positioned between North America and Europe with excellent transatlantic fibre connectivity — a natural bridge for businesses serving both continents.

Stable & High-Trust Jurisdiction

One of the world's most stable democracies, with exceptionally low corruption, strong rule of law, and robust intellectual property protection.

Educated, English-Speaking Workforce

A highly educated population with near-universal English proficiency and a strong talent pool in technology, fisheries, and renewable energy.

Our Formation Packages

Transparent, all-inclusive pricing for your company setup in Iceland.

Essential Ehf. Setup

Fast-track registration for your Icelandic Private Limited Company (Ehf.).

400,000 kr(USD $3,099)

Timeline: 5-7 Business Days

  • Company Name Verification & Reservation
  • Preparation of Articles of Association
  • Registered Address in Iceland (1 Year)
  • Registration with Registers Iceland
  • Corporate Tax (kennitala) Registration
  • Standard Corporate Documents
Most Popular
Business Pro Package

All-inclusive solution with VAT registration, banking, and full operational readiness.

650,000 kr(USD $4,999)

Timeline: 2-3 Weeks

  • All Essential Package Services
  • VAT (VSK) Registration
  • Corporate Bank Account Opening (Remote)
  • Local Director / Authorized Signer Service (1 Year)
  • Electronic ID (Rafræn skilríki) Setup
  • Dedicated Account Manager
Executive Turnkey Solution

A complete turnkey service including accounting setup, payroll, and compliance management.

950,000 kr(USD $7,299)

Timeline: 3-4 Weeks

  • All Business Pro Package Services
  • Initial Accounting System Setup
  • Payroll & Employment Registration
  • Annual Compliance Management (1st Year)
  • Trademark Registration Support (1 Class)
  • Priority Onboarding & Support

Business Structures in Iceland

Find the right legal entity for your business goals.

Private Limited Company (Ehf.)

By far the most common business form in Iceland. It offers liability protection for its shareholders and is ideal for small to medium-sized enterprises and foreign investors.

Key Requirements:

  • Minimum share capital of ISK 500,000 (approx. $3,800), which must be deposited before registration
  • At least one founder, who can be a non-resident individual or company
  • A registered address in Iceland and a managing director domiciled in Iceland or another EEA state
Public Limited Company (Hf.)

A structure suited for larger businesses that may wish to raise capital from the public. Shares may be freely transferable and offered publicly.

Key Requirements:

  • Minimum share capital of ISK 4,000,000 (approx. $30,700)
  • A board of at least three directors and a managing director
  • Subject to stricter auditing and disclosure requirements
Branch Office (Útibú)

An extension of a foreign parent company, not a separate legal entity. The foreign company is fully liable for the branch's obligations.

Key Requirements:

  • Parent company must be in good standing in its home jurisdiction
  • Requires a registered representative domiciled in Iceland
  • Subject to Icelandic corporate tax on branch-source income

Our 5-Step Formation Process

A clear and efficient path to launching your Icelandic company.

1

Consultation & Name Approval

We consult on your needs and verify the availability of your desired company name with Registers Iceland.

2

Document Preparation

We prepare the Articles of Association and a Power of Attorney for your signature, allowing the entire process to run remotely.

3

Capital Deposit

The minimum share capital of ISK 500,000 is deposited into a newly opened capital account in the company's name.

4

Company Registration

Documents are submitted to Registers Iceland (Fjársýsla ríkisins). The company receives its kennitala (corporate ID) and tax registration.

5

VAT & Bank Setup

We complete VAT registration, open your operational corporate bank account, and deliver all documents — your company is fully operational.

Frequently Asked Questions

Your key questions about forming a company in Iceland, answered.

Ready to Launch in Iceland?

Let our experts guide you through every step of establishing your Icelandic company.