Company Formation Iraq
Updated on Friday 04th May 2018
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The oil sector stands at the core of this country's economy and has provided most of its earnings from recent exports. Thus, many foreign investors decide to set up a company in Iraq. In order to complete this process as quick and efficient as possible, do not hesitate to contact our company incorporation agents.
Types of companies in Iraq
Foreign entrepreneurs should first choose the most convenient form of entity to be established: the limited liability company, the joint liability company, the sole owner enterprise or you can go for registering a branch, a representative or an agency office. The most common type is the limited liability company and hereunder there are the demands to be met when opening a company of this kind in Iraq:
- a minimum capital share of 800$;
- a general manager that does not need to be an Iraqi resident, however, the appointment of the foreign manager has to be approved; the managing of the company by a board of directors is not needed.
How to register a company in Iraq
1. First you need to choose and then reserve a name for the company, one that has not been used before, at the Baghdad Chamber of Commerce. The name has to be Arabic.
2. Then you need to hire a lawyer for the process of drafting the articles of association.
3. After that you must deposit the initial capital share required at a bank and receive a confirmation receipt. Then, from the General Commission of Taxation, you need to obtain the tax clearance of the shareholders.
4. Applying at the Companies Registry is needed for registration certificate. Some documents have to be submitted, such as a certified letter proving that you have deposited the share capital at the bank, an address certificate paper from the mayor etc.
5. The fifth step is making a company seal and a copy of the registration certificate is usually required for this procedure to be completed.
6. Registering for taxes at the Tax Authority agency, then legalization of the accounting books at the Accountants Union.
7. Last, when registering a company in Iraq, you need to register your employees for social security. The cost of this step depends on how many employees you have.
For more information about forming a company in Iraq, please contact our company registration experts who will assist you in completing your personalized business plan in Iraq or in other countries.