Doing Business with Iceland

Exporting to Iceland involves several key steps. Here’s a comprehensive guide:

1. Research Market Requirements

   • Understand Iceland’s import regulations and standards for your product.
   • Check for any product-specific certifications needed.

2. Identify Local Partners

   • Establish relationships with local distributors or agents in Iceland.

3. Prepare Export Documentation

   • Include commercial invoices, packing lists, and certificates of origin.
   • Ensure compliance with labeling and packaging requirements.

4. Arrange Logistics and Shipping

   • Choose a reliable shipping company experienced with exports to Iceland.
   • Ensure accurate completion of shipping documents, such as bills of lading.

5. Customs Declaration

   • Work with a customs broker to facilitate the clearance process.
   • Pay any necessary duties and taxes.

6. Understand Duties and Taxes

   • Familiarize yourself with Iceland’s import duties and applicable taxes.

7. Distribution and Sales

   • Establish distribution channels within Iceland.
   • Consider partnerships with local businesses for effective market penetration.

Key Contacts

• Iceland Revenue and Customs
  • Website: Customs Iceland
• Icelandic Trade Council
  • Website: Trade Council

Importing goods into Iceland involves several steps. Here’s a comprehensive guide:

1. Register as an Importer
   • Obtain necessary licenses and register with the Icelandic Customs Authority.

2. Classify Your Goods

   • Determine the correct Harmonized System (HS) code to identify applicable duties and taxes.

3. Check Import Regulations

   • Ensure compliance with Iceland’s import regulations and any necessary permits or certifications.

4. Find a Reliable Supplier

   • Establish a relationship with a trustworthy overseas supplier.

5. Arrange Shipping and Logistics

   • Choose a reliable freight forwarder.
   • Ensure all shipping documents are in order, including the bill of lading and commercial invoice.

6. Customs Declaration

   • Submit an import declaration through the Icelandic Customs’ electronic system.
   • Work with a customs broker if necessary to facilitate the process.

7. Pay Duties and Taxes

   • Calculate and pay applicable import duties and VAT.

8. Receive Your Goods

   • Arrange for transportation of goods from the port to your warehouse or distribution center.

Key Contacts

• Icelandic Customs
  • Website: Icelandic Customs
• Directorate of Customs
  • Website: Directorate of Customs

Incorporating a company in Iceland involves several steps. Here’s a comprehensive guide:

1. Choose a Company Type

   • Decide on the type of company (e.g., Private Limited Company – ehf).

2. Select a Company Name

   • Ensure the name is unique and complies with Icelandic regulations.
   • Check availability with the Register of Enterprises.

3. Prepare Documentation

   • Draft the Articles of Association and other necessary documents.
   • Include details about shareholders, directors, and registered office.

4. Open a Bank Account

   • Deposit the required initial capital into an Icelandic bank account.

5. Register the Company

   • Submit the application to the Register of Enterprises.
   • Pay the registration fee.

6. Obtain a Tax Identification Number

   • Register with the Directorate of Internal Revenue for a VAT number.

7. Register for Social Security

   • Enroll employees with the Icelandic social security system.

8. Comply with Local Regulations

   • Obtain any necessary permits and licenses specific to your business activity.

Costs

• Registration Fees: Varies based on company type and capital.
• Notary Fees: Depend on the complexity of the documents.
• Legal Fees: If using an attorney, costs will vary based on services.

Key Contacts

• Register of Enterprises
  • Website: Ríkisskattstjóri
• Directorate of Internal Revenue
  • Website: Ríkisskattstjóri

Setting up a manufacturing plant in Iceland involves several steps. Here’s a comprehensive guide:

1. Conduct Market Research

   • Analyze the market to understand demand, competition, and location advantages.

2. Choose a Suitable Location

   • Consider factors such as proximity to raw materials, transportation, and workforce availability.

3. Incorporate Your Company

   • Follow the steps to incorporate a company in Iceland, including registration with the Register of Enterprises.

4. Obtain Necessary Permits and Licenses

   • Apply for environmental, zoning, and construction permits through local authorities.

5. Secure Financing

   • Explore financing options through banks or investment partners.

6. Design and Construct the Facility

   • Hire local architects and contractors for design and construction.
   • Ensure compliance with local building codes and regulations.

7. Install Equipment and Machinery

   • Purchase and install machinery necessary for production.
   • Ensure equipment meets safety and operational standards.

8. Hire and Train Workforce

   • Recruit skilled labor and provide necessary training.
   • Register employees with the Icelandic social security system.

9. Set Up Supply Chain and Distribution

   • Establish relationships with suppliers and distributors to ensure smooth operations.

10. Begin Operations

    • Start production and monitor operations for efficiency and quality control.

Key Contacts

• Icelandic Investment Promotion Agency
  • Website: Invest in Iceland
• Register of Enterprises
  • Website: Ríkisskattstjóri
• Environmental Agency of Iceland
  • Website: Umhverfisstofnun

Registering a trademark in Iceland involves several steps. Here’s a comprehensive guide:

1. Conduct a Trademark Search

   • Ensure your trademark is unique and not already registered.
   • Use the database at the Icelandic Patent Office.

2. Prepare Your Application

   • Include details such as the trademark design, classification of goods/services, and applicant information.

3. File Your Application

   • Submit the application to the Icelandic Patent Office.

4. Pay the Application Fee

   • Fees vary; contact the Icelandic Patent Office for the latest costs.

5. Examination Process

   • The office reviews the application for compliance and potential conflicts.
   • Respond promptly to any objections or requests for additional information.

6. Publication and Opposition

   • If approved, the trademark is published for opposition. There is a period for third parties to challenge the registration.

7. Registration and Certification

   • If no oppositions arise, the trademark is registered. You will receive a certificate of registration.

8. Maintain and Renew the Trademark

   • Trademarks are valid for 10 years and can be renewed. Submit renewal applications before expiry to maintain protection.

Costs

• Application Fees: Contact the Icelandic Patent Office for specific costs.
• Legal Fees: If using an attorney, costs will vary based on services.

Key Contacts

• Icelandic Patent Office
  • Website: Icelandic Patent Office

Resolving commercial disputes in Iceland involves several steps. Here’s a guide on the process:

1. Attempt Negotiation
   • Begin by negotiating directly with the other party to reach an amicable solution.

2. Mediation

   • Engage a mediator to facilitate discussions.
   • Mediation is often quicker and less formal than court proceedings.

3. Arbitration

   • Consider arbitration for a private and binding resolution.
   • Provides a structured approach with enforceable decisions.

4. Seek Legal Advice

   • Consult with a lawyer specializing in commercial law for guidance on your case.

5. File a Lawsuit

   • If other methods fail, file a lawsuit in the appropriate Icelandic court.
   • Prepare necessary documentation and evidence.

6. Court Proceedings

   • Attend hearings and present your case.
   • Follow the legal procedures as guided by your attorney.

7. Judgment and Enforcement

   • If a judgment is made, ensure its enforcement through legal channels.

Costs

• Mediation and Arbitration Fees: Vary depending on the service provider.
• Court Filing Fees: Depend on the jurisdiction and case type; consult local courts.
• Legal Fees: Vary based on the lawyer and complexity of the case.

Key Contacts

• Icelandic Courts
  • Website: Ísland Dómstólar
• Iceland Chamber of Commerce
  • Website: Viðskiptaráð Íslands

When considering doing business in Iceland, various social, cultural, political, and economic factors must be taken into account.

Social and Cultural Factors

• Language: Icelandic is the official language, but English is widely spoken in business settings.
• Business Etiquette: Relationships are important. Punctuality and direct communication are valued.

Political Factors

• Government Structure: Iceland is a parliamentary republic known for political stability.
• Regulatory Environment: Generally business-friendly with transparent regulations.

Economic Factors

• Developed Economy: Iceland has a strong emphasis on renewable energy and sustainable industries.
• Foreign Exchange: The currency is the Icelandic króna (ISK). Be aware of exchange rate fluctuations.

Rule of Law

• Legal Framework: Iceland has a robust legal system with strong protection for property rights.
• Judiciary: Independent and efficient, providing fair dispute resolution.

Business Environment

• Infrastructure: Well-developed infrastructure, particularly in telecommunications and energy.
• Workforce: Highly educated and skilled workforce with a focus on innovation.

Key Resources

• Iceland Chamber of Commerce
  • Website: Viðskiptaráð Íslands
• Invest in Iceland
  • Website: Invest in Iceland
• Central Bank of Iceland
  • Website: Seðlabanki Íslands