An Einkahlutafélag (Ehf) in Iceland provides limited liability protection and is commonly used by small and medium-sized enterprises.

The minimum capital requirement is ISK 500,000. The formation process includes drafting the company's articles of association, which must be notarized, and registering with the Icelandic Company Registry. The company must also register with the Icelandic tax authorities.

An Ehf requires at least one shareholder and one director, and corporate records must be maintained. Annual financial statements must be submitted to the relevant authorities.