hlutaféframlag

Hlutafélag (Icelandic for 'limited liability company' or 'corporation') is a legal business structure in Iceland. It is characterized by the limited liability of its owners, known as shareholders. This means that the shareholders' personal assets are generally protected from the company's debts and obligations. Profits and losses of the company are typically distributed among shareholders in proportion to their ownership stake.

To establish a hlutafélag, a minimum share capital is required, which can be contributed in cash or as assets. The company is managed by a board of directors, elected by the shareholders, and is overseen by an auditor in most cases. The shares of a hlutafélag can be transferred, though there may be certain restrictions depending on the company's articles of association.

The formation and operation of hlutafélag are governed by specific Icelandic laws. This legal framework provides a structured environment for businesses, offering a clear separation between the company's finances and those of its owners. Hlutafélag is a common form of business organization in Iceland, used by entities ranging from small startups to large corporations.