Company Formation Iran
Updated on Friday 04th May 2018
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Iran is the second largest country in the Middle East, has a rather large economy and it is situated second in the world when it comes to natural gas reserves. Thus, many foreign investors think about setting up a company in Iran.
Types of business entities in Iran
As a foreign entrepreneur who wants to invest in Iran, you can choose from a few types of business entities such as the limited liability company, the public joint stock company, the representative or the branch office.
• The type of business entity that is usually preferred by investors is the private joint stock company. In order to successfully register this type of company, you need to have a minimum two directors and three shareholders. It does not matter if they are Iranian citizens or not. The minimum share capital that must be paid is 40$.
• Another type of business entity found to be convenient is the private limited liability company, that requires at least two directors and three shareholders. Again, their nationality has no importance. One of the advantages is that the required paid up share capital is minimum 1$ and that the registration process will take approximately three weeks.
Opening a company in Iran
There are a few simple steps to be followed if a foreign investor wants to incorporate a company in Iran (in case of the private joint stock company):
1) First of all, you have to get a certificate from the authorities in Iran proving that you do not have a criminal record.
2) Second you will have to choose a suitable name for the company, one that has not already been used, and then register it at the Companies Registration Office and pay a fee for that process. You also need to submit some documents in order to register a company in Iran, such as a bank record stating that you have paid minimum 35% of the capital share and a written document where the directors state that they accept their position within the firm.
3) Then you have to place an announcement of the company formation in a well-known newspaper. This process can usually take up to 30 days to be completed, but meanwhile the business can continue with a stamped copy you receive from the official gazette.
4) Furthermore you will have to pay the stamp duty in the course of not more than 60 days after the company has been registered.
5) Last you have to go to the Labour Department of Iran and enrol your workers in the social security program and thus obtain a workplace number.
As Iran offers so many advantages, many foreign entrepreneurs choose the country for the fact that the taxes for workforce are low, the company's shares can be 100% foreign-owned and the registering process can be quick and cheap, as well as the rental or the running of the business itself.
Please contact us for more information. Our specialists can offer you support with the procedures.