Application for the approval of the charter for a new fund or foundation
Please note that this translation was generated by AI.
It is possible to request approval of the charter for a fund or foundation that does not engage in business activities. Upon approval by the District Commissioner, the fund or foundation falls under the scope of Act No. 19/1988 on Funds and Institutions Operating According to a Confirmed Charter and is considered a foundation.
One of the main characteristics of a foundation is that it owns itself. By establishing it, an independent management of the funds handed over to the foundation irrevocably has been created.
The charter includes provisions on the operation of the foundation and the management of its funds, including:
The initial capital and its source
The objectives of the foundation
How the funds should be allocated to achieve its objectives
How its management should be appointed and renewed
The District Commissioner of the Westfjords is responsible for approving charters.
What needs to be included in the charter:
The name of the foundation
The municipality where the foundation will be domiciled
The objectives of the foundation
How the foundation's funds should be allocated to achieve its objectives
The names and identification numbers of the founders
The initial capital, its amount, and its source
The number of board members, their term of office, and their selection
Other management entities, such as the executive director and representative council, if applicable, their selection, and their tasks
Auditors and/or inspectors, their selection, and their tasks
The fiscal year (calendar year or other period) and the first fiscal period
Who is responsible for the custody of funds (custodian), if it is someone other than the board
Provisions for seeking the District Commissioner's approval of the charter
The District Commissioner may request other documents deemed necessary for the approval of the charter.
Example of a Charter
Drafts of the charter should be sent to the office by email for review at sjodir@syslumenn.is
Costs
Minimum Initial Capital
The minimum initial capital for a foundation in 2025 is ISK 1,670,000 and must be paid before requesting the District Commissioner's approval of the charter.
Fee for Approval
The fee for approving the charter is ISK 38,000, which includes an ISK 11,000 approval fee and an ISK 27,000 fee for publishing the charter in the B-section of the Official Gazette. The fee must be paid when requesting approval.
Application Process
The request for approval of the charter must include:
The original charter of the foundation, signed by the founder or the board of the foundation. A copy must also be sent electronically to the District Commissioner at sjodir@syslumenn.is.
The names and identification numbers of the board members and their confirmation that they accept their positions on the board. The office's board form must be completed, including the email addresses of the board members and the foundation itself, if applicable. Often, confirmation from the founders that they have selected the respective individuals for the board is also required, i.e., if the founders are tasked with selecting the first board in the charter.
Confirmation from an auditor, lawyer, or bank/savings bank that the initial capital has been paid to the foundation.
The foundation's establishment document or, for example, a gift letter or will, if another legal document besides the charter also forms the basis of the foundation.
A report according to the second paragraph of Article 7 of Regulation No. 140/2008, if applicable.
Once the charter has been approved, the person requesting the approval must register the foundation in the company register and notify the District Commissioner of its identification number.
Related Laws and Regulations
(Only in Icelandic)
Lög nr. 19/1988 um sjóði og stofnanir sem starfa samkvæmt staðfestri skipulagsskrá
Reglugerð nr. 140/2008 um sjóði og stofnanir sem starfa samkvæmt staðfestri skipulagsskrá
Service provider
District Commissioner of West Fjords Iceland