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A company registration in the Faroe Islands in 2020
Key benefits of doing business in this jurisdiction:
- The Faroese economy is among the highest in the world in terms of GDP per capita;
- A low unemployment rate;
- An actively developing financial services, IT-sphere and telecommunications;
- A developed infrastructure.
A cost of registering a business is from €4 900
A company registration period is from 7 daysDetailed information
The Faroe Islands are located between Norway and Iceland, connected with a sea, the marine orientation of a local business, the economy is widely known. Being a part of the Kingdom of Denmark, since 1948 this jurisdiction is completely autonomous, excluding a defense, the police.
Throughout their existence, the Faroese have developed skills necessary to make the most of valuable resources of the North Atlantic, the Faroe Islands, as you know, export seafood to six continents. A desire to register a commercial organization in the Faroe Islands is inevitable, because the environment is beautiful, marine ecosystems around the Faroe Islands are highly productive, they amaze with the diversity of a marine life. Many Faroese fish products have become known for their high quality, such as Faroese cod, spiny lobsters and a farm salmon.
The Faroese business sector is gradually becoming more and more diversified. Opening a company in Farrera can even be guided by one of the important local industries, such as financial services, everything related to the oil production, the refining, a tourism, the shipping. A win-win option is to set up IT/telecommunication organizations in the Faroe Islands.
According to IQ Decision specialists, to open a company in the Faroe Islands you can in a few days. Different types of local businesses require different investments.
- Private Enterprises
This jurisdiction offers a shortened procedure for registering an individual entrepreneurship in Farrera. A fundator must be registered to pay taxes. You must create an account. With individual ownership, there are certain advantages and disadvantages. Most suitable for sole proprietorship.
- Entrepreneurial Companies
Since 2017, it is possible to register a faro entrepreneurial company, that acts as a legal entity, which is managed by both 1 person or the group of owners. Investments range 1-49,999 Danish kroner (about 8 US dollars). The authorized capital is equal to the amount, that the constitutor originally invested. In bankruptcy, only invested finances burn out. The entrepreneurial company is suitable for small firms with a small staff, managed by a board of directors (or 1 representative).
- Private Companies
If you decide to start an entrepreneurship by registering a faro private company, you should know, that this type requires large investments. Starting Jan 1, 2017, an investment amount is 50,000 Danish kroner. It is a legal unit, that spends most of its income on the development of working equipment, managed both by the board of directors and a sole proprietor.
The investment contribution is 500,000 Danish kroner, such firms is similar to the above, well suited for large firms.
To set up a partnership in the Faroe Islands, 2 or more representatives (individuals or legal entities) are required. All founders are directly responsible for the total assets in relation to creditors.
If you want to open a faro commercial firm, IQ Decision specialists will provide you with full support, help you to open a bank account in the Faroe Islands.
The information outlined in the article is actual at the time of its publication.
Please refer to our specialists for checking possible solutions for your business.
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