Kortafyrirtækis

Kortafyrirtækis is a term used in Icelandic business law to refer to close corporations. In Icelandic corporate law, a takafrirmaður (close corporation) is a specific type of business structure that can be formed by two or more individuals.

A kortafyrirtækis is typically characterized by a number of features, including a limited number of shareholders, no public stock offering, and extensive powers of the general assembly. The shareholders of a kortafyrirtækis have a high degree of control over the company's operations and decision-making process.

In Icelandic law, the formation of a kortafyrirtækis requires a written agreement between the shareholders outlining the terms and conditions of the company's existence. This agreement must be submitted to the Icelandic Companies Register for official registration.

The advantages of a kortafyrirtækis include flexibility, tax benefits, and ease of management. However, the close nature of the company can also limit its ability to attract outside investment and expand its operations.

Kortafyrirtækis are commonly used by small and medium-sized enterprises in Iceland, as well as by individuals and families who wish to start a business together. They are well-suited to companies that have a limited number of shareholders and a relatively simple business structure.

Icelandic law offers various forms of close corporations, each with its own set of characteristics and requirements. The specific rules and regulations governing kortafyrirtækis are set forth in the Icelandic Companies Act and other relevant legislation.