Faroe Islands Company Formation Calculator (P/F & Sp/f)
Estimate capital outlay, Skraseting Foroya government registry charges, and professional onboarding expenses to incorporate a commercial entity in the Faroe Islands under the 18% corporate tax regime.
Entity Structure & Capital
Complete initial capital and operational expenditure to incorporate a fully compliant Faroese company with Skraseting Foroya.
Formation Budget Allocation All amounts in DKK
| Expense Category | Beneficiary | Nature | Amount (DKK) |
|---|---|---|---|
| Paid-in Share Capital | Company Bank Account | Equity Asset | 50,000 kr. |
| Government Registry Filing Fee | Skraseting Foroya | Statutory Fee | 1,850 kr. |
| Legal Drafting & Statutes Formation | Law Firm / Corporate Advisor | Professional | 5,500 kr. |
| Bank Account & Capital Verification | Commercial Bank (Betri / BankNordik) | Compliance | 2,650 kr. |
| TAKS Tax & VAT/MVG Registration | TAKS Revenue Authority | Free Filing | 0 kr. |
| Total Required Formation Outlay | Comprehensive | Grand Total | 60,000 kr. |
Faroe Islands Corporate Formation & Registry Guide
Sp/f (Smapartafelag) Overview
The Sp/f is the standard vehicle for small-to-medium enterprises, international holding companies, and tech startups in the Faroe Islands. With a minimum capital requirement of 50,000 DKK, it limits shareholder liability to invested capital. A single director (stjori) is sufficient, and an external auditor can be waived if statutory turnover thresholds are below statutory ceilings.
P/F (Partafelag) Governance
The P/F is suited for large commercial operations, maritime shipping, financial institutions, and companies intending to issue public shares. It demands a minimum share capital of 400,000 DKK, an independent Board of Directors consisting of at least three members, and mandatory external audit by a certified state auditor.
The 18% Corporate Tax Advantage
Faroese companies enjoy a flat corporate tax rate (felagsskattur) of 18%, calculated on net taxable profits. 70% of tax collected flows to the Home Rule government (Landskassin) and 30% to the company's registered municipality (Kommunan).
Bank Account & V-tal Registration
Before Skraseting Foroya issues the official business registration number (V-tal), share capital must be deposited into an escrow account at a licensed bank (such Banki or BankNordik) and formally attested by a bank officer or certified public auditor.
Frequently Asked Questions (FAQ)
What is the minimum share capital required to register a Sp/f in the Faroe Islands? ↓
Under the Faroese Companies Act, the minimum statutory share capital to incorporate a private limited company (Smapartafelag - Sp/f) is 50,000 DKK, which can be contributed in cash or documented assets of equal value.
What is the capital requirement for a public limited company (P/F)? ↓
A Faroese public limited company (Partafelag - P/F) requires a minimum share capital of 400,000 DKK. It also requires a formal board of directors (nevnd) comprising at least 3 members and an executive managing director (stjori).
Which authority registers new companies in the Faroe Islands? ↓
Companies are registered with Skraseting Foroya (the Faroese Company Registration Authority), which issues the official company registration number (V-tal) upon verification of articles of association and paid-in capital.
What corporate tax rate applies to newly formed Faroese companies? ↓
All incorporated companies in the Faroe Islands benefit from a flat corporate tax rate (felagsskattur) of 18% on net taxable profits, one of the most competitive corporate rates in Northern Europe.
Can foreign nationals own and manage a Faroese company? ↓
Yes, foreign investors can incorporate and hold 100% ownership in Faroese companies. However, for certain regulated sectors (such fishing and aquaculture), specific statutory Faroese majority ownership or residency rules apply.
📊 TAKS & Faroese Labor Market Funds (Samhaldsfasti) Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (DKK) |
|---|---|
| Primary Net / Statutory Payable Amount | 0 kr. |