Ábyrgðarhlutafélag

Ábyrgðarhlutafélag is the Icelandic term for a limited liability company. It is a legal business structure where the owners' liability is limited to the amount of capital they have invested in the company. This means that the personal assets of the shareholders are protected from the company's debts and obligations.

The formation of an ábyrgðarhlutafélag requires at least one shareholder and a minimum share capital, which is set by Icelandic law. The company is a separate legal entity from its owners, allowing it to enter into contracts, own assets, and incur debts in its own name. Management is typically handled by a board of directors and/or a managing director.

Ábyrgðarhlutafélag is a common form of business organization in Iceland for both small and large enterprises due to the limited liability it offers. It provides a framework for investment and business operations while mitigating the personal financial risk for the individuals involved. The structure is regulated by Icelandic company law, which outlines requirements for registration, operation, and reporting.