Setting up a company
What is the cost of setting up a Faroese company?
The cost of setting up a limited company in the Faroes is DKK 50.000 (approx. 7550 USD).
The cost of setting up a private limited company in the Faroes is DKK 500.000 (approx 76000 USD).
Additionally, you pay a registration fee and a small annual fee.
How long does is take to set up a company in the Faroes?
Provided that all the papers given to the company registration authority are in order, the registration process only takes a day or two.
Are there any demands as to the nationality of the board members or managers?
There is no demand for a Faroese board, shareholders or a Faroese manager, but a Faroese address is required.
Are there any demands as to the nationality of the crew members on FAS vessels?
There are no requirements of nationality to the captain or any of the crew members, if only their certificates are recognised pursuant to the STCW convention and an agreement is in effect between Denmark / Faroe Islands and the respective Flag State Party.
Are there any special requirements regarding crew certificates?
The FMA issues a Certificate of Recognition for officers. An online course in Faroese maritime law is required for four of the officers - two in the machine and two on the bridge. The cost for the certificate is DKK 500, and the cost for the obligatory online course is DKK 3000 (approx. 533 USD in all). The course in Faroese law does not need to be renewed.
What are the costs in connection with surveys?
The class societies are in charge of surveys and costs in this connection.
Are there any other annual costs?
-Every vessel registered in FAS pays an annual fee of DKK 15.000 plus an additional fee based on tonnage.
-All employers in the Faroes are required by law to provide an industrial injury insurance. The amount is based on number of crew members.
-Each year, the Faroese company must have its annual accounts approved by an accountant.
-The process agent charges an annual/monthly fee based on the services he performs for the company.
Conventions in force
Which conventions are in Force in the Faroe Islands?
The Faroe Islands is an Associate Member of the International Maritime Organisation (IMO), and all the relevant conventions are in force in the Faroe Islands, including SOLAS, MARPOL, LL 66, STCW, MLC, and CLC/FUND92
Is it mandatory to have a Faroese agent?
It is required that you appoint a Faroese processing agent. This agency will help you with all the formalities to get the company registered and provide the mandatory Faroese company address.
However, if a board member or the manager of the Faroese company is a Faroese national, it is not necessary to appoint a Faroese agent.
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