- Overview: Iceland
- Expand without a company set up
- Work permit for hiring expats via PEO
- Global PEO and payroll
- Global HR Compliance
- Contractor vs. employee: which is better?
- Global Payroll Calculator
“The Global Expansion Guide: How To Grow Fast and Limit Risks Without Setting Up A Company In Iceland”
Become An International Business And Gain Presence in Iceland Without The Risk Or Expense Of Setting Up a Company.
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In this guide you’ll learn how to:
- Attract and compliantly pay commission-based sales reps
- Develop international sales and extra revenue opportunities, without setting up own companies overseas
- Enter more markets, test the markets before getting established there, and easily withdraw from the unattractive countries
- Avoid legal and compliance risks
- Design an efficient system of international sales with a strong team of global salesforces
The key to expanding seamlessly into Iceland is finding and effectively managing local people. Just a single pair of boots on the ground is a game-changer. Immediate revenue increases with a skilled globally distributed salesforce, or expedited growth with foreign local IT pros; all benefits of a strong international team and presence in the global marketplace.
However, if your company is trying to go global, or is already in those early stages, chances are that you’re starting to understand how complicated global operations can be.
Learn How You Can Expand Your Business Globally Through Employment Fast, Easily, And Risk-Free!
Business Expansion into Iceland
Elevating your business to a global stage is an ambitious and calculated decision, offering the benefits of market diversification, access to new customer bases, and amplified revenue streams. Traditionally, companies eyeing international expansion have leaned towards creating foreign subsidiaries as their modus operandi. This approach, although tried-and-true, comes with its own set of complexities, including but not limited to legal intricacies, financial commitments, and the need for localized expertise.
However, modern challenges call for modern solutions. The Global Employer of Record (EOR) talent-hiring model, offered by Express Global Employment, presents a nimble and highly efficient alternative.
Foreign Legal Entity Model: Balanced View
Advantages
- Deep Market Engagement: A subsidiary provides unparalleled access to local markets, facilitating real-time insights and allowing companies to modify strategies accordingly.
- Enhanced Local Presence: Operating as a legally recognized entity in a foreign jurisdiction significantly boosts credibility when engaging with local governments, business partners, clients, and stakeholders.
- Financial Risk Mitigation: The separate legal status of a subsidiary offers an insulating layer against financial and legal risks for the parent company.
- Tax Benefits and Resource Allocation: Operating through a subsidiary may yield tax efficiencies and facilitate the acquisition of local resources and assets.
Challenges
- Resource Intensive: Setting up a subsidiary is demanding, often requiring significant time and financial investments.
- Navigating Legal Complexities: Understanding and complying with local laws, regulations, and cultural nuances often necessitates specialized local expertise.
- Exit Strategy Complications: If market engagement is not fruitful, winding down a subsidiary can be complicated, time-consuming, and costly.
Iceland's Business Landscape: Unique Considerations
Entering the Icelandic market has its own set of prerequisites, among them:
- Detailed business registration and incorporation procedures.
- Establishment and governance of a local bank account.
- Procurement of essential business licenses and permits.
- Constant adaptability to ever-changing regulatory requirements and tax codes.
The Top Benefits of a Global EOR
The EOR model offered by Express Global Employment gives businesses strategic leeway with distinct advantages:
- Swift Market Access: Avoid the complexities of setting up a subsidiary and leapfrog into operational mode.
- Operational Efficiency: Our full-scale HR services unburden your internal teams, allowing them to zero in on core business activities.
- Legal and Regulatory Compliance: With an intimate understanding of local laws, we mitigate risks and ensure complete regulatory compliance.
- Scalability and Flexibility: The EOR model allows businesses to scale operations up or down relatively easily, providing a low-commitment opportunity to test new markets.
The Global EOR Paradigm: A Strategic Imperative for Today’s Businesses
While a subsidiary could provide a sturdy long-term foundation in a foreign market, the heavy resource commitments may not align with every business's strategic goals. In contrast, Express Global Employment's EOR service blends speed, compliance, and agility. It is a highly efficient vehicle for companies eyeing swift market entry without sacrificing operational integrity.
Save Up to 80% of Talent Management Costs in Iceland with Employer of Record
Average Cost & Time | Our Solution * | |
---|---|---|
Time to Market | 10+ weeks | 72 hours |
Legal Advisors Fees | $ 10 000 + | …………. |
Official Employment & Benefits | $ 20 000 + | …………. |
Incorporation & Liquidation Costs | $ 11 000 + | …………. |
Bank Account Setup | $ 2 000 + | …………. |
Maintenance costs and in-house staff to manage the foreign entity, payroll set-up, and administration. | $ 25 000+ | …………. |
The approximate total cost of new market entry** | $ 74 000 + | $ 15 000 |
* Per one Employee
** Costs vary from country to country
Your Strategic Plan for Iceland: Simplified and Executed
Iceland’s unique legal environment and payroll systems present a complex landscape. However, by partnering with Express Global Employment, you delegate the intricacies of local employment law, HR, and payroll to experts. This liberates you to focus exclusively on scaling your operations in Iceland.
Identify the prospective hires for your operations in Iceland; we take care of everything else, even offering robust recruitment support if needed. This approach makes your strategic entry into Iceland feasible, exceptionally efficient, and compliant.
Global Employment Services in Iceland
Compliance and legal guidance at every step of the Global Employment Journey. 24/7 local support.
1. Recruitment | 2. Global Mobility | 3. Checks | 4. Onboarding | 5. Payroll Administration | 6. Working Time & PTO Processing | 7. Benefits Administration | 8. Tax Administration & Reporting | Offboarding |
Talent skilled in highly specialised areas | Employee Work Visa and Work Permit sponsorship | Health checks | Employment Agreement drafting | In-country registration with statutory bodies | Working hours | Mandatory Benefits | Tax Reporting frequency and requirements; | Employment agreement termination: |
Executive search | Dependent Visa | Criminal record checks | Compliant worker onboarding on your behalf | Day-to-day payroll management | Overtime | Health insurance | Employer taxes & contributions | Dismissal – by the employer |
Contingency workforce | Visa extension | Background checks | Account setup in the payroll and HR system | Monthly pay slips or other pay frequency | Public holidays | Workers’ compensation | Employee taxes & contributions | Resignation – by the employee |
Application for a sponsor license for a foreign national | Education checks | Employee data entry and records maintenance | Accruals | Annual leave | Unemployment insurance | Withholding tax | Termination by mutual agreement | |
Relocation assistance | Managing probation periods | Allowances | Parental leave | Voluntary Benefits | Local tax payments and reporting to local authorities | Notice period handling | ||
13th and 14th salary | Sick leave | Share plans for executives | End of financial year reporting | Final settlement & severance payments | ||||
Additional leave | Bonuses & Equipment provision | De-registration with statutory bodies | ||||||
Expenses reimbursement & business trip processing | ||||||||
Health insurance, dental treatment |