Operating a Business

flag Iceland Iceland: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

 

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

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The Active Population in Figures

201820192020
Labour Force 212,896215,408215,798

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 88.35%87.08%86.67%
Men activity rate 90.87%89.65%89.04%
Women activity rate 85.77%84.45%84.26%

Source: International Labour Organization, ILOSTAT database

 

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

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Cost of Labour

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%

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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
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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Latest Update: November 2022