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Patents. Foreigners and Icelanders enjoy the same right as regards
aking out patents for their inventions (Act No. 12, June 20th, 1923).
THE RIGHTS OF FOREIGN COMPANIES AND OF
COMPANIES EMPLOYING FOREIGN CAPITAL
In cases where the right of a person to follow a trade or pursuit
in Iceland, to own real estate there, or enjoy other privileges, is made
conditional on domiciliation, — a company, in order to acquire the
same right, must, besides complying with the above stipulation, have
a venue in Iceland, and all its directors are generally required to be
domiciled there. In joint stock companies, engaging in commerce, in-
dustrial activities or trade, more than half the share capital must be
in the hands of persons residing in Iceland. None but Icelandic sub-
jects may be the founders of companies purposing to carry on fish-
curing business in territorial waters; and in the case of a company
intending to pursue fishing inside the limits, more than half the shares
shall be held by Icelandic subjects.
A foreign joint stock company, which, though domiciled abroad, has
the right to engage in activities in Iceland, requires registration ere it
can commence operations there. But before such a company can be
filed in the Companies’ Registry, certificates must be produced to show
‘hat it has observed the provisions of the laws by which such companies
are governed in their home country. In all its dealings the company
shall be guided by Icelandic law to which, if necessary, it may be
made a menable. Further, the company is required to engage the ser-
vices of some person entitled to carry on the same kind of business
that the company itself intends to start. In addition to this, it must own
a property in Iceland to the value of at least 10 000 krénur, as securi-
ty for any engagements it mav make in the country (Act No. 77, June
27th 1921).
FOREIGNERS’ LIABILITY TO TAXATION IN ICELAND
Foreigners residing in Iceland are liable to be taxed according
io the same rules as apply to Icelanders. On the other hand, non-
residents, foreign or native, are faxed by the State on income derived
rom capital owned or business done in Iceland; on salary or other
income of similar nature received from the State or any public insti-
‘ution; and on dividend paid on shares held in Icelandic joint stock
ompanies or other business enterprises. A further tax is pavable to
