Iran is emerging as a big marketplace on account of a vigilant youth population and a lot of opportunities for the foreigners and has therefore attracted a lot of investors. There was a slow move in their entry into the global market yet was a dynamic one. You must look for how to register LLC in Iran from India, Pakistan, Dubai, and other countries? There is a domestic market comprising of 65 million people and yet access to a potential market of the neighboring countries that comprise almost 300 million people. Iran now has a stable economy with per capital annual income of 4800 US $.
Stakes of profit are high when compared with the other middle east countries. One of the best things you will never want to miss out is that, as a foreigner, you can register a company easily and avail all of its shares on your own or you can be a shareholder with any national and make your own partnership. Being your owner of all the profit has led to a sense of security that every investor is looking for.
As a variety of companies can be registered, though limited liability and private joint stock company in Iran are among the two of the majors. There is requirement of 2 persons for the former one and 3 shareholders are required for the latter one but however they can all be foreigners so 100% share holding is assured to the foreigners.
Steps of Registration as a Foreigner
The steps are quite easy and Iranian embassy is found sturdy in helping their investors. You just need to submit a few documents and follow certain steps that are as follow
- Criminal record approval is the foremost paper required for the registration process. You will get it in 5 days and it just costs you 1.65 $.
- Then you can go for the registration of the Name of the Company. It takes 3 days to complete this process and 12.3 $ are the cost for its procedure and 1.32 $ are usually required for carrying out a search for names. Then you must publish that in the official gazette, and it costs 4.6 $. Moreover, 7.94 $ will be required for publishing it any selected newspaper.
- Then you can apply for notifying the State Tax Affairs Organization and it takes only 1 day.
- Then apply for the V.A.T taxation system and it will take 2 days.
- Then in the final phase, an application will be written on a formal format in which you will be requesting for the registration of your own company as a foreigner. For that, you will have to following things alongside too.
- Article of Association and Article of Memorandum are needed to be filled accurately and then certified from the Iranian embassy.
- In case of registering agency of a foreign company, the financial report of the foreign company that is lastly audited should also be provided.
- The study of activities and address of the foreign company should also be given.
- You need to give the Local workplace details the number of employs and address of the agency or the company alongside the details of the financial sector of the company that will be telling the amount of investment and the type of currency in which investment will be made.
- The Letter of Presentation, the letter of Authorization and the letter of Undertaking are the additional requirement in case of setting an agency of a foreign company.
- Statement of registration form will be provided too and then with all them you need to translate that into Persian from a certified translator.
- You just need to submit it all to the Companies register and then its good to go and export import business setup Iran. After the process is completed, do not forget to make these 2 following steps too.
- Reclaim the official sealed book of account that should be done within 30 days of registration and it only costs 1 $.
- Also try to have a Share Certificate Stamp duty
Time of company incorporation
The time required is usually 3 weeks to register a private limited company in Iran.
Investment requirement in Iran
You need to have 10 times more capital than gross per capita income of Iran, in case of LLC, 1 EURO is the minimum amount you need to pay as capital to register and also you can go through with business ideas in Iran.
Advantages Off Starting A Business as a Nonresident
- A company just need shareholders and board of director that can be totally foreigners and hence 100% ownership will be given to foreigners.
- After registration of the company, Iran issue a 3-year residence license to the director as well as the shareholders.
- Iran being a stable economy has various zones that are legally tax free zones which impart to 100 % exemption for a period of 20 years and also the presence of special economy zones that make it obvious a major attraction for the foreign investors Agriculture and industrial companies have 100 % exemption too.
- Moreover, the road and rail system connect the Iran with other counties to make the investor have access to 300 million neighboring potential customers. Moreover, the airport and seaports are much developed too.
- The costs are relatively low in Iran if you are looking for some raw material or you are going to avail the energy sources for your company. Moreover, the cost of transportation is also low that will bring a more rate of profit.
- Having reserve of oil and coal, the cost of electricity is also the lowest in Iran.
- The per Capita of Iran being the matter of attraction is also among the least 10 cheap cities to live in.
- Iran has a zealous youth and a highest education rate among the middle east countries
- The access to internet is more permeated in Iran and develop a better online platform for the promotion of your company
Dis-advantages Off Starting A Business as a Nonresident
- Though there are lot of potential benefit, but the Iranian bureaucracy is filled with corruption and in efficiency so it can make you cost bribery and time loss too.
- Moreover, the judicial system is also considered to be an inefficient so you cannot rely on them to resolve the disputes for you.
- Banking system is still underdeveloped even the credit cards are not present there,
- Gender bias is the most prevalent in Iran so female investors need a lot of courage to work in such a place.
- Despite an access to internet, basic site like goggle, Facebook and twitter are banned on account of the rules of their media.
- Language is another barrier as registration form will all be in Persian and less than 5 % population can speak a fluent English.
- Iranian Riya is most depreciated due to its trade policies. Moreover, the conversion of dollars and euros is also an issue there.
Iran is no doubt an emerging marketplace with an easy registration process and low cost of investment with a lot of profit and many privileges.
Why S & F?
Since 2012, S & F Consulting Firm have been successfully serving to the international investors setting up business by FDI law of Iran. All arrangement, A-Z, are provided by S & F with reasonable fees. Partner of S & F in Iran are well known and experienced in the services around 10 years. Following services are available:
- Business advisory as FDI law
- Company Incorporation
- Arrange business licenses as need according to nature of business
- Tax and Accounting