Einkahlutafélag (ehf.), private limited company ehf.Iceland
What it takes to form, own and run a private limited company in Iceland, and how its profit is taxed. Each figure links to the page it was read from.
This company type
At a glance
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a Private Limited Company denotes a Company where no member is personally responsible for the Company´s total liabilities
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In a Private Limited Company one or more shares are the property of one or more shareholders.
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The Board of Directors of a Private Limited Company shall consist of at least three persons, unless there be four or fewer shareholders, then it is sufficient that the Board consist of one or two persons.
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public limited companies (ehf. and hf.) is taxed at a rate of 20%
Form it
Who registers it
- Registry
- Formed without visiting
- Yes
- Formed online
- Yes
What it takes to form
- A notary
- Not required
- A resident director
- Required
- Paying up the capital
- All capital shall be paid upon the establishment of the company.
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All capital shall be paid upon the establishment of the company.
Own it
Who may own and run it
- Directors
- At least 1 · one must live there
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The Board of Directors of a Private Limited Company shall consist of at least three persons, unless there be four or fewer shareholders, then it is sufficient that the Board consist of one or two persons.
- Shareholders
- At least 1 · a company may be one
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In a Private Limited Company one or more shares are the property of one or more shareholders.
- Members
- At least 1 · one person may form it alone
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When a private limited company is established by one party
- A local company secretary
- Not stated
The registry’s and the law’s own pages do not mention it.
- A local registered agent
- Not stated
The registry’s and the law’s own pages do not mention it.
Each year, at the registry
- Annual registry fee
- Not stated
The registry’s and the law’s own pages do not mention it.
- Accounts on the public record
- Yes
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Skila ber ársreikningi hvers reikningsárs til Ársreikningaskrár til opinberrar birtingar.
- Audit for a small company
- Not stated
The registry’s and the law’s own pages do not mention it.
- Audit
- Not in our records
Important dates
When each obligation falls due, as the authority states it.
Not in our records No dates for the ehf. are in our records.
What is public
- Directors
- Public
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hægt er að nálgast ítarlegri upplýsingar, svosem stjórn, prókúru og fleira með því að sækja gjaldfrjálst yfirlit í gegnum vefverslun
- Beneficial owners
- Public
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hægt er að nálgast ítarlegri upplýsingar, svosem stjórn, prókúru og fleira með því að sækja gjaldfrjálst yfirlit í gegnum vefverslun
Tax
Tax on profit
How this company type is taxed, which can differ from its place’s headline rate.
Flat · 20%
The income for both private and public limited companies (ehf. and hf.) is taxed at a rate of 20%, per island.is.
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public limited companies (ehf. and hf.) is taxed at a rate of 20%
Work it out on a profit figure: the company’s tax, the owner’s, and what is left.
- CFC rules in Iceland
- Not in our records
Close it
Closing it
The other end, which most guides leave out.
Not in our records Route, Statutory fee: none of these is in our records for the ehf..
Every business in Iceland
VAT
- Standard rate
- 24%
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The standard rate of VAT in Iceland is 24%.
- Other rates
- 11% Rental of hotel and guestrooms and other commercial accommodation, campgrounds, catering and sale of food, alcohol, travel agents and tour operators, passenger transport, and self-employed guides
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The reduced rate of VAT in Iceland is 11% and applies to the sales of following goods and services
- Registration threshold
- ISK 2,000,000 · about €14,684
sales of taxable goods and services; each twelve-month period from the beginning of business activity
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Exempt from the obligation to register for VAT are those who sell labor and services that are exempt from VAT and those who sell taxable goods and services for 2.000.000 ISK or less in each twelve-month period from the beginning of their business activity
- A foreign company
- The same threshold applies; needs a local tax representative
A foreign business selling taxable goods and services in Iceland is liable on the same terms as an Icelandic company and registers when the conditions are met. One selling taxable services without a permanent establishment in Iceland must entrust an agent domiciled in Iceland to act as its representative, collect the VAT and remit it.
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Foreign taxable persons selling taxable goods and services in Iceland are liable for VAT according to the same rules and regulations as Icelandic companies and shall be registered for VAT if the conditions for registration are met.
- Returns filed
- Depends on the business
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In general each VAT settlement period is two months
- Tax authority
- Registration page read 2026-10-22
Payment and banking services
4 services name Iceland on their own list: Paysera, Airwallex, Revolut, N26. Each provider, and what a listing means.
Reference
Its name and code
- Kind
- Private limited companyDerived our grouping, the same words in every country
- Name in law
- Einkahlutafélag (ehf.), private limited company (ehf.)
- ISO 20275 code
- M8SSSecondary GLEIF, Entity Legal Forms code list