FIRE.inc. started when four bands Stilluppsteypa, Curver, Púff and Kolrassa Krókríðandi who played gigs at a small basement venue called Hlaðvarpinn in downtown Reykjavík decided to release a joint compilation, which was out as F.I.R.E. in December 1993. FIRE.inc. also organized concerts of foreign bands in Iceland, including Dog Faced Hermans and Dawson from Scotland, God Is My Co-Pilot from New York, Keuhkot and Radiopuhelimet from Finland and Spaceheads from England.
Since 1994 the label was operated solely by Heimir Björgúlfsson from Stilluppsteypa, who changed direction towards more experimental sound. The label moved to Amsterdam in 1997 and since then and up to dissolution in 2003 all releases were manufactured and distributed by Staalplaat.