Act of Business Iceland
Article 1 Objectives
The objective of this Act is to promote the image and reputation of Iceland, strengthen the competitive position of Icelandic industry in foreign markets, and attract tourists and foreign investment
Article 2 Legal form and role of Business Iceland, a non-profit organisation.
Business Iceland is a non-profit organisation that is run on a privatised basis, with independent financial responsibility, and operates according to a special charter.
Business Iceland, a non-profit organisation, is exempt from income tax according to Act No. 90/2003 on Income Tax, and provisions of the Administrative Procedures Act on Eligibility No. 37/1993, do not apply to its activities.
The Information Act No. 140/2012 applies to the operation of Business Iceland. The Act does however not grant access to information in possession of Business Iceland relating to employee issues or financial or business interests of private parties that are involved in its projects.
The role of Business Iceland, a non-profit organisation, is:
a) to be a collaborative forum for business, interest groups, institutions, and governments to collaborate on policy and actions to increase export revenues and economic growth;
b) to provide counselling and services to all export sectors in order to facilitate marketing and export of products and services;
c) to attract foreign travellers with coordinated marketing and promotional work;
d) to attract foreign investment, inform foreign investors of Iceland’s benefits, and provide authorities with consultation thereto;
e) to support the promotion of Icelandic culture, products, and services abroad;
f) to manage properties that it acquires and align with its role according to these laws;
g) to prepare proposals for the long-term strategy of industries, interest groups, institutions and authorities, cf. item a, regarding marketing and export of Icelandic products, services, and culture, and
h) to implement the long-term strategy cf. item g (L. 94/2018, Article 1.)
Article 2 a) Export and Marketing Council.
An Export and Marketing Council shall be operated.
The Council’s role is to define, approve, and monitor the implementation of the long-term strategy of the government and economy for marketing and export.
The Council shall consider proposals for projects carried out in co-operation between the business sector and the government, and ensure that such projects are in line with the defined long-term strategy.
The foreign affairs minister shall appoint 31 members for the Council with a term of four years, and equally many alternates. Ten shall be appointed without nomination and 21 according to nominations of the following parities:
a) ten according to the nomination of the Confederation of Icelandic Employers (SA);
b) three according to the nomination of the Minister of Fisheries and Agriculture;
c) three according to the nomination of the Minister of Trade and Innovation;
d) three according to the nomination of the Minister of Education and Culture;
e) one according to the nomination of the Icelandic Association of Local Authorities;
f) one according to the nomination of the collaborative working group of marketing agencies around the country.
When nominating according to Paragraph 4, item a, the size of companies must be taken into account when generating export income. In addition to representatives, cf. Paragraph 4, the Minister of Foreign Affairs, who is also the Chairman of the Council; the Minister of Fisheries and Agriculture; the Minister of Tourism, Industry and Innovation; the Minister of Education and Culture; and the Minister of the Environment and Natural Resources shall have a seat in the Council, along with representatives of parliamentary parties outside the government at all times.
The Export and Marketing Council can appoint working groups from the Council for specific projects, and Business Iceland, a non-profit organisation, shall advise them. (L. 94/2018, Article 2.)
Article 3 Board of Directors of Business Iceland, a non-profit organisation
The Board of Directors of Business Iceland, a non-profit organisation, consists of seven representatives who are appointed at the Annual General Meeting for three years at a time. The Minister of Foreign Affairs nominates two Board members, the Minister of Tourism, Trade and Innovation nominates one, and the Confederation of Icelandic Employers nominates four. Alternates shall be nominated in the same manner. The Board can approve the appointment of an observer. The members of the Board shall allocate tasks among themselves.
The Board is responsible for the preparation of the proposal of long-term strategy cf. Article 3, item a, and shall based on that work on an execution plan with the same time-frame and decide how it will be implemented. The Board shall assess the execution of the strategy regularly and take action if needed.
The Board approves the annual operating budget of Business Iceland and supervises its implementation. The Board hires the Managing Director of Business Iceland, a non-profit organisation, and determines their terms of employment, as well as the internal organisation of the operation of Business Iceland, a non-profit organisation, and in what manner the organisation consults and works with individual industries.
The Board of Directors convenes the Annual General Meeting of Business Iceland, a non-profit organisation, to be held before 1 May each year. Entitled to attend are the founding members, the parties who appoint representatives to the Board of Directors of Business Iceland, as well as the members of the Export and Marketing Council. The Board is authorised to invite others to attend the Annual General Meeting. In the Annual General Meeting, the Board describes the strategy planning of Business Iceland, a non-profit organisation, the implementation of a long-term strategy, and its other operations, and publishes its operating plan and annual financial statements. (L. 94/2018, Article 3.)
Article 3 a Long-term strategy.
The Board of Business Iceland, a non-profit organisation, shall prepare a proposal for the long-term strategy for the government and industry for export that is meant to promote increased export revenue and economical growth, and submit to the Export and Marketing Council for discussion and approval. The strategy shall have a term of five years at a time.
The aim with the long-term strategy is to set a main objective for the marketing work that Business Iceland, a non-profit organisation, carries out on foreign markets. The strategy must include objectives and priorities in individual market areas and regarding individual sectors. It shall include measurable performance goals.
Consultation shall be made with the Export and Marketing Council when formulating the strategy cf. Article 2, item a.
Article 4 Operations
The Managing Director of Business Iceland, a non-profit organisation, shall manage its daily operation and hire employees. Provisions of the Government Employees Act No. 70/1996, do not apply to the employees of Business Iceland, a non-profit organisation.
Article 5 Income
The income of Business Iceland is:
1. ... (1)
2. [Funding determined by the Minister on the basis of budget allocations] 1)
3. Fee for services rendered.
4. Service contracts with institutions and organisations.
5. Special contributions and other income. … 2)
[A market fee of 0.05% shall be added to the fee base for the payment of payroll tax as defined in Chapter III of Act No. 113/1990 on Insurance Contracts. Imposition and collection of market fee is according to the provisions of these laws. Market fee shall be deducted from the income of the operation year that the base was accumulated.
The income of Business Iceland according to clause 2, Paragraph 1, shall never be less than the market fee cf. Paragraph 2.]
[A five-year service contract shall be concluded between the state and Business Iceland, a non-profit organisation, regarding the disposition of its funding, that is meant for marketing in foreign markets and fall under the operational field of Business Iceland, a non-profit organisation, according to the following law.]
[A five-year service contract shall be concluded between the state and Business Iceland, a non-profit organisation, regarding the disposition of its funding, that is meant for marketing in foreign markets and fall under the operational field of Business Iceland, a non-profit organisation, according to the following law.]
Article 6 Charter
The Charter that the Board of Directors sets and confirms, shall describe the operations of Business Iceland, a non-profit organisation including operation and organisation. L. 94/2018, Article 8.).
Article 7 Entry into force
This Act shall enter into force immediately.
Article 8 Amendments to other Acts
Interim Provisions
(I)
The Board of Business Iceland operates temporarily until the founding meeting 1 September 2018 when a new Board of Directors is appointed in accordance with provisions of Paragraph 3. The Boards shall prepare the establishment of Business Iceland, a non-profit operation, and convene its founding meeting.
During the founding meeting for Business Iceland, a non-profit organisation, 1 September 2018, assets and commitments of Business Iceland shall accrue to the new non-profit organisation which takes control over the rights and obligations of Business Iceland. In addition, Business Iceland, a non-profit organisation, is authorised to accept properties it is given and align with the role of the organisation cf. Article 2 and manage their operations.
The founding parties of Business Iceland, a non-profit organisation, shall in the founding meeting on 1 September 2018, determine its operation and organisation in the Charter according to Article 6. The new Boards of Business Iceland shall on 1 December 2018 put forward the first proposal regarding the long-term strategy of the government and the economic sector for export cf. item a of Article 3, and shall that strategy be valid until the end of year 2023. (L. 94/2018, Article 8.).
(II.)
Service agreement cf. Paragraph 2, Article 5 must be available no later than 1 September 2018.
(III.)
Within three years, the Minister shall carry out a review of Business Iceland’s operations and that of the Export and Marketing Council, as well as assess whether the goal of the new legislation has been reached. Service agreement cf. Article 5 shall not be extended until such review has been concluded. (L. 94/2018, Article 8.).
(IV.)
The Minister shall appoint a working group in consultation with the Prime Minister, Minister of Tourism, Industry and Innovation, and Minister of Finance and Economic Affairs, in which specialists of these ministries take seat. The working group shall be entrusted with preparing a legislation on the new operating form that applies to the authorities and the economical sector, as is the case for Business Iceland. The purpose of this legislation is to clarify the legal framework of the operating form of authorities and economical sector. (L. 94/2018, Article 8.).
Passed by the Althing on 12 June 2018.
More information about the law on the website of the Althingi (38/2010: Act on Business Iceland, a non-profit organisation | Legislations | Alþingi (althingi.is))