Starting a Business
This guide gives an overview of the main steps involved in starting a business in the Faroe Islands, including advice, registration, permits, training, waste management, and relevant points of contact. Requirements vary according to the type of business and its operating location, so entrepreneurs should confirm the rules that apply to their specific activities.
If you have a business idea and want to get started, Íverksetarahúsið provides free advice and guidance on developing the idea, preparing a business plan, exploring financing, organising accounting, and planning sales and marketing. https://iverksetan.fo/radgeving/
Íverksetarahúsið also offers a start-up conversation for people considering a business venture. The conversation provides an opportunity to discuss questions about the basic practical and commercial aspects of entrepreneurship before taking the next steps. https://iverksetan.fo/dokumentir/stovna-fyritoeku/
Business Registration
If your commercial sales of goods or services exceed DKK 50,000 within a 12-month period, you must register with TAKS’s Business Register, Vinnuskráin, and obtain a V-number (V-tal). https://www.taks.fo/fo/vinna/vinnuskrain/
Businesses operating as certain company types, including public limited companies (P/F), private limited companies (Sp/f), and entrepreneur companies (ÍVF), must also register with Skráseting Føroya. https://www.skraseting.fo/en/companies/company-registration/
Permits and Licences
Some business activities require specific permits or approvals. Requirements for activities such as sales from a vehicle, sales tents, food tents, and other temporary commercial activities may be handled by the municipality where the business will operate or by another relevant authority.
Important: The exact permit you need depends on your type of business and where/how you operate. Check with your municipality and the relevant authority before starting an activity that may require approval.
For Faroese legislation and regulations, you can search Lógasavn, the official Faroese legal database. https://www.logir.fo/
Business Advice and Support
Íverksetarahúsið provides free advice to people in the Faroe Islands with an interest in entrepreneurship or a business idea. It also supports learning and networking through events, courses, and other educational activities. https://iverksetan.fo/um-iverksetarahusid/
Íverksetarahúsið also provides entrepreneurs with access to a professional and innovative environment where they can work alongside other entrepreneurs and students. https://iverksetan.fo/um-iverksetarahusid/
Entrepreneurs can also apply for a mentor from the business community who can offer practical advice, share experience, and provide an external perspective on business decisions. https://iverksetan.fo/mentorskipan-fyri-iverksetarar/
Courses, Events and Training
Íverksetarahúsið regularly organises events, courses and educational activities related to entrepreneurship and innovation. https://iverksetan.fo/tiltok/
Waste Management for Businesses
IRF is the Faroese intermunicipal waste and recycling company. Its operations include the collection of household and commercial waste, recycling, waste treatment, handling of hazardous waste and other waste-management services. https://irf.fo/about-irf/
IRF states that proper waste sorting supports the recycling of valuable resources and the development of a circular economy in the Faroe Islands. Its website provides further information about the organisation and its waste-management activities. https://irf.fo/about-irf/
For practical information about sorting waste correctly, IRF provides a searchable waste-sorting guide (Skiljiskjáttan). https://skiljiskjattan.irf.fo/
Where to Start
For business ideas and entrepreneurship contact Íverksetarahúsið:https://iverksetan.fo/
For business registration and tax information contact TAKS:https://www.taks.fo/fo/vinna/vinnuskrain/
For information about business waste and recycling services, contact IRF:https://irf.fo/
For local requirements and permits
The municipalities listed below cover Integration NorthEast. Businesses operating elsewhere in the Faroe Islands should contact the municipality responsible for their operating location.
Contact the municipality where your business will operate to confirm local requirements, application procedures, documentation, and processing times.
Klaksvíkar municipality
Eystur municipality
Fuglafjarðar municipality
Hvannasunds municipality
Viðareiðis municipality
Kunoyar municipality
Fugloyar municipality