Register a private limited company (ehf) in Iceland
Form an ehf and register it with the Register of Enterprises at Iceland Revenue and Customs (Skatturinn). The company needs ISK 500,000 in share capital.
- Timeline
- Typically 1-2 weeks
- Cost
- ISK 500,000 minimum capital plus a registration fee
- Steps
- 5 stages
Deadline — read this first
Register before commencing operations.
Who can file
Founders with an Icelandic ID (kennitala) or an authorised local agent.
Step by step
- 1
Prepare the founding documents
Draft the memorandum and articles of association setting out capital, shares and management.
- 2
Deposit the share capital
Pay in the ISK 500,000 minimum capital.
- 3
Register with Skatturinn
File the incorporation with the Register of Enterprises to obtain a company kennitala.
- 4
Register for VAT
Enrol for VAT if turnover requires, and set up payroll withholding if hiring.
- 5
Record beneficial owners
Provide beneficial-ownership details to the register.
Documents you must produce
- Memorandum of association
- Articles of association
- Proof of paid-in capital
- Identification of founders and directors
- Beneficial-ownership details
Common mistakes that sink cases
- Underestimating the ISK 500,000 capital requirement.
- Forgetting VAT registration where turnover requires it.
- Non-EEA founders overlooking residency/agent requirements.
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