Best Private Equity Lawyers in Tórshavn

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Faroe Law
Tórshavn, Faroe Islands

Founded in 2000
50 people in their team
Faroese
English
Faroe Law was established in 2000 as a division of Dania Law A/S. In 2007, Eyðfinnur Jacobsen and Jens Wang, attorneys-at-law, became partners at the firm, and were joined by Óli M. Hansen in 2013.Our philosophy is that all tasks must be solved in their business-related context and based on the...
LEKS Advokatfirma
Tórshavn, Faroe Islands

Founded in 2000
50 people in their team
Faroese
English
About UsLEKS lawfirm is a law firm, which provides full legal services for the corporate sector, government and authorities as well as individuals. The law firm offers a wide spectrum of legal knowledge, and possesses all the competencies relevant to serve any client.LEKS lawfirm is a law firm,...
Advokatfelagið
Tórshavn, Faroe Islands

Founded in 2000
50 people in their team
Faroese
English
About AdvokatfelagiðIf You need legal advice You are welcome to contact us.We offer legal advice, counselling and assistance in all state of affairs - being in private life, business and regarding affairs with public authorities and institutions.The firm can represent You in all stages of the...
Heygum & Petersen advokatar
Tórshavn, Faroe Islands

Founded in 1958
50 people in their team
Faroese
English
The lawyer’s officeThe office is in modern premises centrally situated in No. 16 Bøgøta, Tórshavn.The office is open from 08.00 to 12.00 and from 13.30 to 16.30.At the moment the office staff  counts 5 of which 2 are barristers and 3 secretaries.Modern communication and data equipment is...
Advokatskrivstovan
Tórshavn, Faroe Islands

Founded in 1905
50 people in their team
Faroese
English
Advokatskrivstovan traces its roots back to 1905 and is the oldest law office in the Faroe Islands. Advokatskrivstovan provides its clients with legal advice at the highest level. Advokatskrivstovan provides both industry, public authorities and individuals with legal advice. We also represent our...

Founded in 1996
50 people in their team
Faroese
English
The Faroe Islands Legal Aid offers free legal counseling and guidance to individuals.The Faroe Islands Legal Aid is bound by professional secrecy and all inquiries are dealt with in confidence.You can contact the Faroe Islands Legal Aid either by calling during work hours, sending an e-mail or by...
Sp/f Eli Thorsteinsson
Tórshavn, Faroe Islands

Founded in 2020
10 people in their team
Faroese
English
About EliEli ThorsteinssonAttorney-at-LawEli has been operating his own law firm since January 1, 2020.Eli works within the field of commercial law in a broad sense and has solid experience from the Faroese banking sector as a legal advisor, chief compliance officer, etc., as well as from law firms...
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About Private Equity Law in Tórshavn, Faroe Islands

Private equity refers to investment funds, typically organized as limited partnerships, that buy and restructure companies not publicly traded. In Tórshavn, Faroe Islands, private equity is a developing sector, influenced by both local regulations and the broader Danish legal framework due to the Faroe Islands' relationship with Denmark. While the market is smaller compared to mainland Europe, Tórshavn has seen increasing activity as investors, both local and international, recognize opportunities in sectors like fisheries, technology, and energy. Understanding the local business climate, legal framework, and the requirements for foreign and domestic investors is crucial when dealing with private equity transactions in this jurisdiction.

Why You May Need a Lawyer

Engaging in private equity transactions involves complex legal considerations in Tórshavn. Even experienced business professionals can encounter unfamiliar requirements or risks. Here are some common situations when you may need legal advice:

  • Structuring or setting up a private equity fund or partnership
  • Conducting due diligence before an investment
  • Negotiating and drafting investment agreements
  • Resolving disputes between general partners and limited partners
  • Ensuring regulatory compliance, especially with cross-border investments
  • Advising on exit strategies such as mergers, acquisitions, or public offerings
  • Handling tax issues related to private equity investments
  • Assisting with licensing and registration requirements

A lawyer with experience in private equity law in the Faroe Islands can help you avoid costly mistakes, protect your interests, and ensure all transactions comply with relevant laws.

Local Laws Overview

The legal environment for private equity in Tórshavn is characterized by a combination of Faroese-specific statutes and Danish influence. Some key legal aspects to be aware of include:

  • Company Law: Most private equity investments occur through limited liability companies or similar entities. The Faroese Companies Act regulates incorporation, management, and reporting requirements.
  • Foreign Investment Rules: While the Faroe Islands encourage foreign investments, certain sectors may require government approval or have ownership restrictions for non-residents.
  • Taxation: Private equity transactions may trigger various Faroese taxes, including capital gains, corporate income tax, stamp duties, or withholding taxes. Tax planning is essential for both investors and target companies.
  • Contract Law: Investment agreements must comply with Faroese contract principles, which derive largely from Danish law but have local nuances.
  • Regulatory Oversight: The Faroese Financial Supervisory Authority (FSA) oversees financial services and fund managers. Certain private equity activities, especially fundraising from the public or acting as fund managers, may require licensing.
  • Anti-Money Laundering (AML): Strict compliance with AML regulations is expected, especially in cross-border deals or when funds are raised from diverse investor bases.

It's important to obtain legal advice at an early stage to navigate these unique regulatory and business requirements effectively.

Frequently Asked Questions

What is private equity and how does it work in the Faroe Islands?

Private equity involves investments made directly into private companies or buyouts of public companies, resulting in their delisting from stock exchanges. In the Faroe Islands, most private equity deals are in growth industries, often involving local investors or partnerships with Nordic firms.

Are there restrictions on foreign investors participating in private equity in Tórshavn?

While the Faroe Islands are open to foreign investment, some sectors like fisheries and energy may have specific ownership or approval requirements. It's important to verify the rules for your targeted sector before investing.

What legal structures are commonly used for private equity investments in Tórshavn?

Limited liability companies (P/F or Sp/f) are the most common vehicles. Partnerships and other structures can also be used, but each comes with different legal, tax, and regulatory implications.

Is local legal representation required for private equity transactions?

While not always legally required, having Faroese legal counsel is highly recommended. Local lawyers provide critical insights on regulations, customary market practices, and transactional risks.

How are private equity transactions taxed in the Faroe Islands?

Taxation varies based on the structure and the nature of the transaction. Common taxes include capital gains tax and corporate tax. Special attention should be paid to any double taxation treaties that may apply.

When is regulatory approval needed for private equity transactions?

Certain transactions, especially in regulated industries or significant mergers and acquisitions, may require approval from local authorities or the Financial Supervisory Authority. Legal counsel can help determine when this is necessary.

What kind of due diligence should be performed in private equity deals?

Due diligence should cover legal, financial, tax, and operational matters. Typical checks include verifying ownership, contracts, employee matters, compliance with regulations, and potential liabilities.

Can disputes arising from private equity agreements be resolved locally?

Yes, disputes can be resolved under Faroese law, typically in local courts or through agreed arbitration. Ensuring clear dispute resolution clauses in your agreements is important.

Are there special considerations for cross-border private equity deals?

Yes, cross-border deals often involve additional regulatory filings, tax planning, currency considerations, and compliance with both Faroese and foreign laws. Experienced counsel can navigate these complexities.

How long does a typical private equity transaction take in Tórshavn?

The timeline varies based on the deal's complexity, sector, and regulatory processes. Straightforward transactions may close in 2 to 3 months, while complex or regulated deals may take longer.

Additional Resources

If you are seeking more information or support, consider the following resources:

  • Faroese Financial Supervisory Authority (FSA): Responsible for financial sector oversight, licensing of fund managers, and regulatory compliance.
  • Faroese Business Registration (Vinnuskrásetingin): Manages company registrations, filings, and statutory disclosures.
  • Faroese Tax Administration (TAKS): For questions on tax implications, regulations, and filings relevant to private equity structures and transactions.
  • Faroe Islands Chamber of Commerce: Offers industry information, networking, and guidance on local business practices.
  • Local Law Firms: Several reputable law firms in Tórshavn specialize in business and investment law, including private equity matters.

Next Steps

If you are considering a private equity investment or face a legal issue in this field in Tórshavn, here are some steps to help you proceed:

  • Clarify your objectives and investment plans to determine if private equity is the right vehicle for you.
  • Conduct preliminary research and planning, including understanding the business and regulatory environment in the Faroe Islands.
  • Contact a reputable law firm in Tórshavn with experience in private equity and commercial law. Initial consultations can help outline potential challenges and opportunities.
  • Prepare necessary documentation and information to ease the process, such as business plans, financial data, and investment agreements.
  • Address any regulatory filings and compliance matters early with the help of your legal advisor.
  • Be proactive and ask your lawyer questions about due diligence, contract terms, exit strategies, and dispute mechanisms.
  • Stay informed about potential changes in legislation or business practices in the Faroe Islands that could affect your investment.

Taking these steps ensures that your private equity venture in Tórshavn is legally sound, efficient, and well positioned for success.

Lawzana helps you find the best lawyers and law firms in Tórshavn through a curated and pre-screened list of qualified legal professionals. Our platform offers rankings and detailed profiles of attorneys and law firms, allowing you to compare based on practice areas, including Private Equity, experience, and client feedback. Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters. Get a quote from top-rated law firms in Tórshavn, Faroe Islands - quickly, securely, and without unnecessary hassle.

Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.