Foreign corporations, coming into the Iranian market and Business Setup in Iran, might choose from a venture company with associate Iranian partner and a corporation within the dry land with 100 percent foreign holding or a branch or representative workplace in Iran.
Foreign corporations, United Nations agency enter the Iranian market and created an institution in Iran, might choose from totally different alternatives captivated with their meant activities: they’ll type a venture company with associate Iranian partner, or a corporation within the dry land with 100 percent foreign holding or a branch or representative workplace in Iran.
The industrial Code of Iran (abbrev. IR-CC) contains four necessary topics. one in every of that is expounded to industrial corporations. The IR-CC acknowledges seven sorts of industrial corporations, that may well be related to the subsequent sorts of business:
- Joint Stock Company or Corporation (Sherkat Sahami)
- Indebtedness Company (Sherkat ba Masouliyat Mahdoud)
- General Partnership (Sherkat Tazamoni)
- restricted Partnership (Sherkat Mokhtalet Gheyr Sahami)
- Joint Stock Partnership (Sherkat Mokhtalet Sahami)
- Proportional Liability Partnership (Sherkat Nesbi)
- Production and Consumption Cooperative Society (Sherkat Ta’avoni Towlid va Masraf)
From then on top of corporations, 3 sorts of corporations area unit of great importance and area unit additional common in Iran, that area unit non-public Joint Stock Company, Public Joint Stock Company, and indebtedness Company.
Joint Stock Company (Public and Private)
The Joint Stock Company by law is outlined as a corporation whose capital is split into shares and also the liability of the shareholders is restricted to the face value of their shares. It’s associate freelance legal entity, which can enter into contracts, might sue and should be sued. Therefore, shareholders’ personal properties area unit cut loose their contributions and also the creditors of the corporate ought to pursue the properties happiness to the corporate. A managing board chosen from shareholders, by a normal general assembly, directs the corporate. The joint stock company could also be either a public or a non-public company. the most distinction between the 2 is that the general public company might provide its shares and debt securities to the general public whereas a non-public company might not. the shape of a public joint stock company is usually adopted by entities United Nations agency want to boost capital publically, notwithstanding the very fact that the corporate is listed on the board of stock market or not. the quantity of shareholders within the public one should be a minimum of 5 persons and a non-public company might operate with a minimum of 3 persons. Shares may be transferred, though this issue is subject to the sure restrictions within the non-public company and is subject to the approval of managing board or shareholders. The non-public joint stock company is that the commonest variety of industrial enterprises in Iran and also the one most often utilized by foreign investors in forming venture corporations. Articles 1-300 of the amended IR-CC dated 1969 outline the procedures, rights and obligations that govern the joint stock company and its shareholders.
Limited Liability Company
Two or additional partners, United Nations agency area unit solely chargeable for the company’s debts to the extent of their contribution, whereas, the capital isn’t divided into shares, might establish this kind of company. Transfer of partnership share is extremely tough, wherever a 3 quarters majority of partners is needed to authorize this deal and share transfer ought to be notarized within the notary. This company is managed by one or additional administrators, salaried or not, chosen from among the partners or outside, for a restricted or unlimited amount. wherever a indebtedness company consists of over twelve partners a board of supervisors should management them. Articles 94-115 IR-CC outline the procedures, rights and obligations that govern the indebtedness company and its partners.
Joint Venture corporations
Depending on the scale and nature of economic activities and business set up of foreign corporations, they’ll enter into venture agreement with Iranian corporations and establish a venture company. supported Iranian law, the quantity of contribution foreign by foreign party isn’t subject to any limitation and it may well be approved even up to 100 percent of equity share. A venture company could be a registered company in Iran and these sorts of corporations might take either the shape of a non-public joint stock company or in some cases a indebtedness company.
Foreign Companies’ Branch / Representative workplace
One of the best and commonest suggests that for industrial transactions and investment may well be an institution of a branch or representative workplace of a far off company in Iran.
According to Iranian Law the branch workplace of a far off company is that the subordinate native unit of the principal company, that carries out the objectives, and functions of the principal company therein location. The activity of the branch within the location should be conducted below the name and responsibility of the principal company. The representative of the foreign company, is that the natural person or legal entity United Nations agency is answerable in step with the illustration (agency) contract, with finishing up a precise a part of the thing and functions of the principal company. The representative of the foreign company shall be accountable with relevancy the activities allotted within the location below the agency granted by the principal company.
The foreign representatives and branch offices area unit presently registered in Iran in step with the stipulations of the Act allowing the Registration of Branch or Representative Offices of Foreign corporations, legal on Gregorian calendar month twelve, 1997, and it’s govt By-Laws of mighty 02, 1999.
According to Article one of govt By-Laws, foreign corporations, that area unit recognized as a legal company in their country of origin, might register their branch or representative in Iran, for activities listed below, in conformity with the country’s laws and rules and by observant the principle of reciprocal action:
- Providing after-sale services for the products or services of the foreign company;
- Finishing up the manager operations of the contracts terminated between Iranian persons and foreign companies;
- Learning and parturition grounds for the foreign company’s investment in Iran;
- Cooperation with Iranian technical and engineering corporations for endeavor activities in third countries;
- Increasing the non-oil exports of the monotheism Republic of Iran;
- Providing technical and engineering services and transfer of ability and technology;
- Partaking in activities allowable by the governmental agencies wrongfully licensed to issue such permits, in areas like providing services in transportation, insurance and measurement, banking, marketing, etc.
Registering a corporation in Iran and employment
There is a minimum national wage applicable to every sector of activity mounted by the Supreme Labor Council that is revised annually. In 2015 the wage, determined by the Supreme Labor Council, was concerning US$230 per month (US$2,760 per year). Membership within the social insurance system for all staff is required. The national personal income for 4-person households in Iranian capital was around $9000 per annum in 2015
Foreign nationals area unit prohibited from operating in Iran unless they receive work and employment permits (even if they’re speculated to receive wage and remuneration outside the Iranian territory).
Trade Laws of Iran that you just ought to grasp if you created a corporation
The general guideline of the custom laws of Iran doesn’t proscribe the other product from coming into the country apart from the list below however sometimes sure permits and licenses area unit needed so as to clear your product from customs.
- Alcoholic drinks;
- Gambling tools;
- Weapons, ammunition and explosive goods;
- Narcotic drugs;
- Magazines, photos, films and snaps and people product, that area unit against non secular and national dignity of the country.
- Any sort of writings that area unit against the official faith of the country and /or heavy discipline and public purity and national dignity.
- Those sorts of product that have legitimate and legal prohibition and /or their import and export haven’t been allowed in step with the customs tariff table or special rules
The import of all importable commodities by the governmental or non-governmental importers except in following cases are going to be subject to registration and receiving import certificate from the Ministry of Commerce upon observant different stipulated rules and rules.
Trade certificate could be a document for import or export of product. Trade certificates area unit issued by the Chamber of Commerce, Industries and Mines in Iranian capital or different provinces for the qualified candidates for a amount of 1 year.
The import before export of raw materials and product required for producing, finishing, preparation and packaging of export commodities
One or variety of natural persons residing in Iran or having a residence allow on permit him to jaunt and from Iran at any time ought to manage the branch or representative workplace.