Establishing a business

Most companies in Iceland are private limited companies, due to the simplicity and tax efficiency of this structure. In Iceland, the tax environment for companies and organizations can change a great deal in a short time. When deciding on the form of your company, you should look at the longer-term business scope and objectives.

The most common forms of association in Iceland are:

  • Sole proprietorship
  • Private limited (ehf.)
  • Limited liability companies (hf.)
  • Cooperatives (svf.)
  • Syndicates (slf.)
  • General partnerships (sf.)
  • Organizations

As part of our service, we establish your business in the selected form of association and also apply for your VAT number and/or put the company into the employer’s files, if necessary.