Guide to doing Business in Iceland

Iceland is a beautiful country with a variety of different landscapes and is often seen as a holiday destination. But Iceland has much more to offer than its scenic beauty. Iceland is known for its economic progress, stability and technological innovation. The country has always been recognised as one of the most prestigious societies in the world. It has become an ideal location for investors or those looking to start their business in Iceland. Doing business in Iceland is not often talked about, but it is a hidden gem for keen investors and business people.

Iceland’s quality of life, modernity, expanding economy and politically stable government make it a sound investment for business people. Iceland's internationally competitive reputation makes it the perfect place to start a business. This young, up-and-coming nation is full of educated, multilingual people who enjoy the cultural scene. Not to mention the flexible labour market filled with people who can adopt new technologies and drive innovation. There are a number of reasons to do business in Iceland, here are some of them:

• Ease of Doing Business – Doing business in Iceland is exorbitantly easy when compared to many other countries. Iceland’s small society allows for access to officials making it a fair, yet competition driven environment for companies. This makes Iceland’s economy an attractive opportunity for foreign investors. Starting a company in Iceland takes a short amount of time and it actually ranks 14th out of 144 countries.
• Highly Educated Workforce – The work force in Iceland is highly educated and much more experienced in knowledge intensive markets. Since Iceland is a leader in technological innovation many of the jobs require a higher education level and almost 40% of the primary working population has some form of higher education.
• Green Energy – Iceland is one of the only countries left in Europe with a significant amount of renewable energy that can still be harnessed. This means that green energy is still competitively priced and will work in favor of your business in Iceland. In addition, Iceland offers long term contracts to companies that allow them to further reduce costs and minimize their carbon footprint. With this amount of untapped resources, Iceland is the perfect location for setting up a company.
• Free Trade with China – China has become a fast-growing market with a number of products or services most businesses need. The free trade agreement benefits Businesses in Iceland as well as Chinese investors looking to import/export goods to/from Iceland.
• Low Tax Rates – Iceland has one of the lowest tax rates in Europe. It’s 20% corporate income tax makes it one of the best locations for businesses in Iceland to realize a large percentage of commercial profit.
• Government Incentives – Iceland’s government makes business a priority and aims to create favorable business environments. Some of the many incentives include low corporate tax, land, green energy, and effective legislation. Depending on the type of business you are looking to start, there are a number of incentive opportunities. The EU allows for incentives for SMEs, R&D and environmental protection among other things. Foreign companies and workers also receive additional tax incentives not found in many other places.
• Optimal Location – Iceland retains an amazing location as it is perched right between North America and Europe. Although it is an island, it’s extensive land and air links keep the population supplied. Travel to Europe, the United States and Canada is less than 6 hours in most cases. Iceland’s innovative freight shipping lines make importing and exporting extremely easy and accessible.
• Infrastructure – Iceland is number one out of 144 countries in terms of infrastructure and there is a reason for this. The country is one of the leaders in information and technology communication, as it has extensive connectivity and advanced communication technology. The country is also at the forefront of utilising existing technologies to increase business productivity. Roads help connect the country's main population, air links help connect residents with the rest of the world and cargo ports facilitate imports and exports.

If you decide to set up a company in Iceland, there are a variety of forms in which you can operate. Most foreigners tend to set up a branch of a limited liability company, but it is also possible to set up an independent company. Or you can buy shares in Icelandic companies. Icelandic company law is harmonised with EU company law. To set up a company in Iceland, you must register with the District Commissioner for Sole Proprietorships, Partnerships, Limited Partnerships and European Economic Interest Groupings. After registration, an identity number from the company register must be applied for from the director of the tax office as well as a VAT number.

As an investor starting your business in Iceland, it can be a daunting task to deal with registration, hiring employees and all other aspects of starting a business in Iceland. Swapp Agency is an established company that has extensive experience in supporting business start-ups in Iceland. It is known as one of the leading recruitment agencies that provides highly qualified candidates that are a perfect fit for your company. Their main goal is to ensure that your business is successfully launched with an experienced team. They connect Iceland with the rest of the world and enable companies to bypass the complicated process of setting up a business in Iceland.

There are endless benefits to setting up your business in Iceland, including tax incentives, infrastructure, green energy, free trade, an educated labour force and much more. With the help of Swapp Agency, your Icelandic business will thrive and have access to payroll services, technical solutions and legal support. Swapp Agency offers all these benefits in one place, so you can focus on growing your business and not on the tedious day-to-day tasks.