Iceland: Operating a Business

Setting Up a Company

Einkahlutafelag is a Private Limited Company.: Number of partners: No minimum
Capital (max/min): ISK 500,000.
Shareholders and liability: Liability is limited to the amount contributed
Hlutafelag is a Public Limited company.: Number of partners: At least two founders, a minimum of two shareholders, at least one manager and no less than three persons on the board of directors
Capital (max/min): ISK 4 million
Shareholders and liability: Liability is limited to the amount contributed
Partnership: Number of partners: Minimum two
Capital (max/min): No minumum capital required
Shareholders and liability: Unlimited
Co-operative Societies: Number of partners: Minimum of fifteen founders
Capital (max/min): No minumum capital required
Shareholders and liability: limited to the payment of a membership fee and the share of ownership of the society's funds

The Competent Organisation: The competent organization is the Company Registration.

Setting Up a Company	Iceland	OECD
Procedures (number)	5.0	5.2
Time (days)	11.5	9.5

Source: Doing Business.

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

	2018	2019	2020
Labour Force	212,896	215,408	215,798

Source: International Labour Organization, ILOSTAT database

Source: International Labour Organization, ILOSTAT database

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.
Labour Laws: Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

Minimum Wage: No minimum wage exists.
Average Wage: Gross average monthly wage of men: ISK 393,000 (source: ILO, 2011);
Gross average monthly wage of women: ISK 321,000 (source: ILO, 2011).
Social Contributions: Social Security Contributions Paid By Employers: 6%
Social Security Contributions Paid By Employees: 4%

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

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