Different kinds of businesses

In a limited company, or a limited liability company or public limited company, the finances of the company are separate from the owners' finances. In Faroese, this is called a partafelag, or P/F for short.

Companies must register in TAKS's business register, Vinnuskráin. Read more about this under "Starting a business".

Limited companies must also register with the company registration authority, Skráseting Føroya. Guidelines for registering are found on Skráseting Føroya's website.

Amendments
TAKS gets notified of most amendments that are registered with Skráseting Føroya.

However, account numbers for refunds of VAT or payroll tax must be reported directly to TAKS.

Closing down
A limited company can only be removed from TAKS' Vinnuskráin by notification from Skráseting Føroya or the probate court. However, a company can cancel liabilities such as VAT and payroll tax itself.

In a private limited company, the finances of the company are separate from the owners' finances. In Faroese, this is called a smápartafelag, or Sp/F for short.

Companies must register in TAKS's business register, Vinnuskráin. Read more about this under "Starting a business".

Limited companies must also register with the company registration authority, Skráseting Føroya. Guidelines for registering are found on Skráseting Føroya's website.

Amendments
TAKS gets notified of most amendments that are registered with Skráseting Føroya.

However, account numbers for refunds of VAT or payroll tax must be reported directly to TAKS.

Closing down
A limited company can only be removed from TAKS' Vinnuskráin by notification from Skráseting Føroya or the probate court. However, a company can cancel liabilities such as VAT and payroll tax itself.

A partnership is a company with two or more members (physical or legal persons). The members share responsibility for the company's debts. In Faroese, this is called íognarfelag.

A partnership must register in TAKS' business register, Vinnuskráin. Read more about this under "Starting a business".

If all the owners are legal entities, they must register with the company registration authority, Skráseting Føroya.

Amendments
Vinnuskráin must be notified of all amendments in a signed written document.

If there are changes to owner relations, a new contract must be submitted. If an owner wants to sell their share of the company, a notification must be signed by the seller and buyer and sent to TAKS.

Closing down
If the business terminates, a notification must be sent to TAKS.

Entrepreneurships are a type of company that allows entrepreneurs to start a business with minimal capital. The capital needed to open a business must only be between DKK 1 and 49,999. In Faroese, this is called íverksetarafelag.

A partnership must register in TAKS' business register, Vinnuskráin. Read more about this under "Starting a business".

Entrepreneurships must also register with the company registration authority, Skráseting Føroya. Guidelines for registering are found on Skráseting Føroya's website.

Amendments
TAKS gets notified of most amendments that are registered with Skráseting Føroya.

However, account numbers for refunds of VAT or payroll tax must be reported directly to TAKS.

Closing down
A limited company can only be removed from TAKS' Vinnuskráin by notification from Skráseting Føroya or the probate court. However, a company can cancel liabilities such as VAT and payroll tax itself.

In a sole proprietorship, there is only one owner who is self-employed and is personally responsible for the company's finances. In Faroese, this is called einstaklingsvirki.

Sole proprietorships must register in TAKS's business register, Vinnuskráin. Complete the Vinnuskráin registration form, enclose an operating budget and submit it to TAKS. Read more about this under "Starting a business".

Amendments
TAKS must be notified of any amendments to the company in a written and signed document.

Closing down
If the company is closing down, notify TAKS by submitting a Deregistration form. Find it under Forms.

The goals of interest groups are not commercial and not to create profit for its members. Nonetheless, an interest group can be commercial on the condition that the profit goes to the company rather than the individual members. The finances of the group are separate from the finances of the members. In Faroese, this is called áhugafelag.

When interest groups register in TAKS's business register, Vinnuskráin, the group's articles of association must be enclosed and the committee chairman must sign the registration form.

Amendments
TAKS must be notified of any amendments. When, for example, the guarantor is replaced or the address changed, it is important that this is amended in Vinnuskráin. Report the amendments by filling out a new registration form.

Closing down
Notify TAKS when a company ceases to exist by submitting a deregistration form. Find it under quick links.