entrepreneurship in Iceland

Required documents for entrepreneurship in Iceland

The first prerequisite for entrepreneurship in Iceland is a solid business plan with high economic justification. Foreign investors must gather the necessary documents and apply to get approval from the Icelandic government after examining the investment conditions and preparing a business plan. After obtaining the required confirmations, the applicant can go through the receiving an Icelandic entrepreneurial visa process. The Icelandic government generally gives investors one year to implement the business plan and submit a performance report. Moreover, a business plan can be a new and innovative idea known as an Icelandic start-up. The minimum required capital for entrepreneurship in Iceland is about 200,000 Euros, but the exact amount will be determined according to the business plan.

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Topics reviewed in this article:

• Affective standards and indicators of investment in Iceland
• Types of Entrepreneurship in Iceland
• How to start a business in Iceland
• Obtaining residence in Iceland by company registration

Affective standards and indicators of investment in Iceland

As we mentioned, entrepreneurship in Iceland has specific rules and regulations. Therefore the applicant must know the criteria and standards of investment to understand the entrepreneurial process better. Critical standards for entrepreneurship in Iceland are tax rates, unemployment rates, and economic growth and prosperity. In this section, we discuss vital indicators.

• Tax rates: Usually one of the foreign investors’ concerns is the tax rate set by the Icelandic government. Now, the income tax that entrepreneurs have to pay is close to 35%.
• The unemployment rate in Iceland: The unemployment rate is one of the most efficient indicators for entrepreneurship in Iceland and shows prosperity in the job market. According to the latest statistics released, Iceland’s unemployment rate is 6.5 percent. So it has genuine job market conditions.
• Economic growth rate: Another thing that investors need to consider is the economic growth rate and prosperity in Iceland. If the economic growth rate is upward and significant, it can make the investor’s progress faster. The increase in GDP in recent years is proof of this country’s economic growth.

Types of Entrepreneurship in Iceland

Iceland has provided entrepreneurial opportunities for foreign investors in many areas that can grow and require active labor. In general, if a person produces a good business plan with a positive economic impact and creates jobs, there will be no limit to one’s activity. However, types of entrepreneurship include registering a company, buying real estate, and start-up in Iceland. Company registration can be in the information technology, green energy, petrochemicals, and marine products fields. The minimum required capital to register a company in Iceland is 5,000 euros, and this amount is regardless of the investment. Types of companies in Iceland:

• Limited liability companies
• Public companies
• Joint companies

How to start a business in Iceland

The first step in starting a business and entrepreneurship in Iceland is to create a comprehensive business plan related to the job. After the applicant has got approval from the relevant organizations, one can apply to register a company. First of all, the applicant must determine the company’s name, and the National Registry of Iceland must approve it. Then, the person can determine the company’s exact location and start its activity. The foreign investor will initially receive a temporary residence permit and submit a performance report after one year. The applicant requires a valid passport, business plan, sample signature, and draft association articles to register an entrepreneurship company in Iceland.

Obtaining residence in Iceland by company registration

One way to obtain residency in the beautiful country of Iceland is to register a company. When a foreign investor receives an Icelandic entrepreneurial visa, one can apply for a visa for one’s spouse and children under 18 years. Initially, a person gets a short-term residence, which can be extended annually. If the person has been working in Iceland for four years, pays taxes, and has no criminal record, one can apply for permanent residence. After one year of permanent residence, the applicant and one’s family will receive an Icelandic passport. One of the critical conditions for obtaining Icelandic citizenship is compatibility proof and official language knowledge.