#

Ease of Doing Business in

Iceland

Iceland Download Profile (1712.4KB, pdf)
Region OECD high income
Income Category High income
Population 330,823
GNI Per Capita (US$) 49,730
City covered Reykjavik

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 20 18 down
2
78.91 78.88 down
0.03
Starting a Business 34 35 up
1
92.64 92.44 up
0.20
Dealing with Construction Permits 70 68 down
2
71.66 71.61 up
0.05
Getting Electricity 9 9
-
92.24 92.24
-
Registering Property 15 15
-
86.61 86.61
-
Getting Credit 62 60 down
2
60.00 60.00
-
Protecting Minority Investors 22 18 down
4
70.00 70.00
-
Paying Taxes 29 31 up
2
84.88 84.88
-
Trading across Borders 66 66
-
80.27 80.27
-
Enforcing Contracts 32 31 down
1
69.10 69.10
-
Resolving Insolvency 14 14
-
81.70 81.65 up
0.05

DB 2017 Rank: 34

DB 2016 Rank: 35

Change in Rank: up1

DB 2017 DTF (% points): 92.64

DB 2016 DTF (% points): 92.44

Change in DTF (% points): up0.20

Standardized Company
Legal form: Private Limited Liability Company
Paid-in minimum capital requirement: ISK 500,000
City: Reykjavik
Indicator Iceland OECD high income
Procedure – Men (number) info_outline 5.0 4.8
Time – Men (days) info_outline 3.5 8.3
Cost – Men (% of income per capita) info_outline 2.0 3.1
Procedure – Women (number) info_outline 5.0 4.8
Time – Women (days) info_outline 3.5 8.3
Cost – Women (% of income per capita) info_outline 2.0 3.1
Paid-in min. capital (% of income per capita) info_outline 7.6 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Search for company name

    Agency: Register of Enterprises (Directorate of Internal Revenue)

    The company name database can be accessed at the Internal Revenue's website (www.rsk.is).
    Less than one day (online procedure) no charge
    2

    Deposit initial capital in bank account

    Agency: Commercial Bank

    The initial capital can be deposited in any commercial bank.
    1 day no charge
    3

    Apply for registration with Register of Enterprises

    Agency: Register of Enterprises

    To apply for registration with the Register of Enterprises, the company must provide five documents:
    1. Notification of incorporation form
    2. Agreement of incorporation
    3. Record of the meeting of incorporation
    4. Articles of Association
    5. Affidavit on payment of share capital, issued by a certified public account

    The register is also in charge of advertising the incorporation notice in the Official Gazette, the official journal. The total registration fee is ISK 130,500, which includes the company identification number (ISK 5,000), and the fee for publishing the notification in the Official Gazette (ISK 1,000).

    Model incorporation documents and forms (in Icelandic) can be found on the Ministry of Industries and Innovation's website (www.atvinnuvegaraduneyti.is). The notification of incorporation form can be downloaded at no cost from the Internal Revenue Office website (www.rsk.is).
    1 day ISK 130,500
    4

    Obtain a VAT number

    Agency: Directorate of Internal Revenue

    Taxable parties must report their activities to the Director of Internal Revenue no later than 8 days after the activity begins. Companies that plan to sell goods or services valued at more than ISK 1,000,000 are required to collect and report VAT.

    Applicants can fill out form 5.02 which can be submitted online (https://www.rsk.is/atvinnurekstur/ad-hefja-rekstur/virdisaukaskattsskra/nr/160). The signed form and notification can also be sent via email to the Register of Enterprises and/or by visiting the offices of the Director of Internal Revenue. The Director of Internal Revenue will subsequently assign the applicant company with a VAT number which the company shall use in it’s economical activities. The notification can also be filed at www.skattur.is with a web key.
    Less than one day (online procedure) no charge
    5

    Notify tax authorities of employment of workers

    Agency: Tax authorities

    The notification can be filed at www.skattur.is with a web key. The signed form and notification can also be sent via email to the Register of Enterprises.
    Less than one day (online procedure) no charge