Starting a company
Establishing a company in Iceland is relatively easy, as long as you ensure that you have the correct legal form for the business.
Any EEA/EFTA nationals may set up a business in Iceland.
Establishing a company
It is relatively simple to establish a company in Iceland. The legal form of the business must however be suitable for the company’s activities.
Anyone starting a business in Iceland must have an identification (ID) number (kennitala).
There are several different operational forms possible including these:
- Sole proprietorship/firm.
- Public limited company/publicly owned company/private limited company.
- Co-operative society.
- Partnership.
- Self-governing corporate entitity.
Detailed information about starting a company can be found on island.is and on the website of the Government of Iceland.
Starting a business as a foreigner
People from the EEA / EFTA region can set up a business in Iceland.
Foreigners have customarily established a branch of a limited company in Iceland. It is also possible to establish an independent company (subsidiary) in Iceland or buy stocks in Icelandic companies. There are certain businesses that foreigners cannot get involved with, such as those engaged in fisheries and primary fish processing.
Icelandic company law is in line with the requirements of the company law provisions of the Agreement on the European Economic Area, and consequently EU company law.
Remote work in Iceland
A long-term visa for remote work permits people to stay in Iceland for 90 to 180 days for the purpose of working remotely.
You can be issued a long-term visa for remote work if:
- you are from a country outside the EEA/EFTA
- you do not need a visa to enter the Schengen area
- you have not been issued a long-term visa in the past twelve months from the Icelandic authorities
- the purpose of the stay is to work remotely from Iceland, either
– as an employee of a foreign company or
– as a self-employed worker. - it is not your intention to settle in Iceland
- you can show a foreign income of ISK 1,000,000 per month or ISK 1,300,000 if you also apply for a spouse or cohabiting partner.
Free legal assistance
Lögmannavaktin (by the Icelandic Bar Association) is free legal service to the general public. The service is offered all Tuesday afternoons from September to June. It´s necessary to book an interview before hand by calling 568-5620. More information here (only in Icelandic).
Law Students at the University of Iceland offer free legal counselling for the general public. You can call 551-1012 on Thursday evenings between 19:30 and 22:00. Check out their Facebook page for more information.
Law students at Reykjavík University provide individuals with legal counselling, free of charge. They deal with various areas of the law, including tax issues, labour market rights, the rights of residents in apartment buildings and legal issues concerning marriage and inheritance.
The legal service is situated in the main entrance of RU (the Sun). They can also be reached by phone on 777-8409 or by email at logfrodur@ru.is. The service is open on Wednesdays from 17:00 to 20:00 from September 1st until the beginning of May, except during final exams in December.
The Icelandic Human Rights Centre has also offered assistance to immigrants when comes to legal matters.