Business Licensed Companies

If the company is subject to a business licence, a business licence must be applied to the County Council of the capital, in addition to the National Health Service's licence.

The National Health Service's work permit and the county's business license are required to hang up in a prominent place.

Change of ownership

In the event of a change of ownership and major changes in activities or premises, a new business license and a new work permit must be applied for.

It is prohibited to start a business activity unless the business license for it is not available.

The County Licensing Department sends a review request to the county council (City Hall of Reykjavik), the Labour Inspectorate and the police. The County Council seeks reviews from the following parties and then submits a joint review to the County Council for the application for a business license:

The construction supervisor verifies that activities are in accordance with the building permit, planning terms and that a final evaluation of the premises has been carried out. The Organizer confirms that the delivery time and location of the premises subject to application are within the limits stipulated by the rules and organization of the municipality. The Health Department confirms that its activities comply with the provisions of the Hygiene and Pollution Prevention Act and the Food and Drugs Act and, when applicable, the Health Committee's assessment of the adverse effects of its activities, including acoustics.
The capital fire brigade verifies compliance with fire protection requirements as assessed by the fire brigade.

Which companies are business licensed?

Accommodation Restaurants
Hotels Restaurants in Categories II or III
Larger Bed & Breakfast Entertainment Centre Categories II or III
Smaller Bed & Breakfast Veitingastofa og greiðasala í flokkum II eða III
Accommodation Chalet Party Service & Restaurant Shopping Categories II or III
Mountain Chalets Cafés Categories II or III
Apartments Bars Categories II or III
Holiday homes Gathering halls Categories II or III

What equipment do I need?

The premises and equipment of licensed companies take into account the type of activity to be carried out in the premises in question. Housing, equipment and food safety systems (internal control) must be such that the safety of food and customers/guests is always ensured during the most stressful times. Please refer to the Guide to Good Practice in Food Companies and the harmonised operating conditions of the Environmental Protection Agency and the Municipal Health Department. Attention is drawn to the fact that in Decree No. 1277/2016 on Restaurants, Lodging and Entertainment specifies the requirements for the companies subject to the Regulation and Law no. 85–2007 The Health Department does not supervise the provisions of the Regulation.

See more about star licensing conditions on the EEA website


Housing, equipment and food safety systems (internal control) must be such that the safety of food and customers/guests is always ensured during the most stressful times.

Restaurants and catering shops

Restaurants and restaurants are referred to in everyday terms as fast food restaurants. In the event of a restaurant room, guests are required to have access to a separate guest room, which should take into account the needs of persons with disabilities. A catering shop is a place where the sale of catering not for consumption takes place on the premises, although such sale is the main activity of the premises. There is no requirement for special tidiness for customers of catering shops. Non-alcoholic (non-alcoholic) catering establishments and catering shops are Class I, pursuant to Law No. 85/2007 and Regulation no. 1277/2016) do not require a business license.

See Act No. 85/2007 and Regulation no. 1277/2016

Inquiries and/or Tips

For further information, please contact the Metropolitan County Licensing Department.

For detailed definitions of the classification and types of accommodation and catering establishments, see Articles 3, 4, 17 and 18 of Regulation No. 1277/2016 on restaurants, places to stay and entertainment.

  • County Licensing Department in the
  • capital
    Hlíðasmára 1, 201 Kópavogur
  • Phone 458 2000
  • Harmonized operating licensing requirements for municipal health departments and the Environmental Protection Agency for bed and breakfasts, lodges, hotels, meeting rooms and meeting rooms can be found on the Environmental Protection Agency website.