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flag Iceland Iceland: Operating a Business

Setting Up a Company | Working Conditions | Cost of Labor | Social Partners

Setting Up a Company

Legal Business Entities

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability
Einkahlutafelag is a Private Limited Company.
 
Minimum ISK 500 000. 		No minimum.
 
Liability is limited to the amount contributed.
Hlutafelag is a Public Limited company.
 
Minimum ISK 4 million. 		Minimum 2 partners.
 
Liability is limited to the amount contributed.
 
The Competent Organization
The competent organization is the Company Registration, hosted at the Internal Revenue Directorate.
 
Setting Up a Company Iceland OECD
Procedures (number) 5.0 5.6
Time (days) 5.0 13.8

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Iceland.
 Statistics Iceland

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Working Conditions

Legal Weekly Duration
40 hours
Retirement Age
67 years.
Working Contracts
The work contract is defined by the law. Collective agreements and individual negotiation complete it.
The work contract is rather formal.

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Cost of Labor

Minimum Wage
No minimum wage is mandated by law, but there are minimum wages, specific to different sectors of activity, defined by collective agreements.
Average Wage
Average earnings is USD 713 per week
Social contributions
Social Security Contributions Paid By Employers: 6%
 Social Security Contributions Paid By Employees: 4%

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Social Partners

Social Dialogue and Involvement of Social Partners
The Icelandic Federation of Labor can be mentioned.
Unions
List of all Icelandic Unions
Unionization Rate
Icelandic workers are among the most unionized in the world with more than 85% of them belonging to a union.
Labor Regulation Bodies
Ministry of Social Affairs
 Confederation of Icelandic Employers (CIE)

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Learn more about Operating a Business in Iceland on Globaltrade.net, the Directory for International Trade Services.
 

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Last Updates: January 2012