Iran has got one of the most youthful and dynamic population in the Middle East. They are quickly earning the tag of being one of the most thriving business communities in the world. Considered as the last emerging business nation in the world, they are slowly but surely entering the global market. It is expected that the current economic framework of Iran will allow it to become the greatest economy in the Middle East and in due time be one of the top trading countries in the world. The return on investment is quite high in Iran. The normal rate of rate of return in land, telecom, mining and oil industry of Iran is over 44.9% and the expansion rate of the economy for 2015 was under 14.0%. As consultant, we guide foreign investors how to register a company in Iran, private limited company, joint venture and branch office as fdi policy.
With so much going on in Iran, it is no surprise to see how the rest of the world is taking notice of this great country. In fact, the economic stability and limitless potential has created a lucrative deal for foreign investors from all around the globe. They are all planning to set up businesses in Iran and establish their own companies there as well.
Foreign company registration in Iran
Foreign companies can now set up their organization with 100% responsibility for offers and control of their business. This can be a preferences to a portion of the organizations willing to be more required in the Iranian market giving them greater security and solidness as a remote financial specialists. There are two sorts of organizations which can be enlisted for remote venture openings, Limited Liability Company and Joint Stock Company
Limited Liability Company Registration
A Limited Liability Company is characterized as an organization framed by at least 2 people to direct business exchanges and exercises. Limited Liability Company depends on the immediate commitments of the accomplices to the organization and not by offer membership.
The developments of limited liability partnerships are regarded to have occurred when the capital in real money has been completely contributed and when non-cash contributors have been surveyed and conveyed.
The entire incorporation process or registration of the company involves finalizing what the company’s objects will be. It also includes the submission of the required documents of the company which will be registered as a joint stock company or a limited liability company. The list of requirements includes the following.
- Need to submit a formal writing requesting for registration of their company.
- Provide certified photocopies of the articles of association and articles of memorandum. Any other changes made in the company registration of the parent company should also be provided.
- The last audited financial report of the company.
- A feasibility study of the company should be provided. This study should contain all the information related to the activities done by the said foreign company. There should be detailed explanation as to why the company wishes to incorporate in Iran. A description of the type of activities to be performed by this particular company in Iran should also be mentioned along with the permanent address of operations. As estimated number of local workforce required and expats needed should also be included in this feasibility study. And lastly, the feasibility study must contain a financial sector. Over there it should be clearly mentioned as to how much money is being invested in this company and in what currency. There should be a detailed flow of currency that will be used in the daily operations of the company.
- Introduction of a letter of presentation from a government on the off chance that the branch has been set up for usage of an understanding between the remote organization and that administration element.
- Once all the above steps have been completed and the documents served, the foreign company will have to fill up the Statement of Registration form.
- The Statement of Registration form will be followed by filling up the Certificate of Registration. These forms require the official signature of the owner of the foreign company or the signatures of the board of members.
- The Companies Registry in Tehran then requires the Letter of Authorization as well. This is basically the letter that the foreign company has given out to their representatives in Iran. Submission of this letter is crucial and should not be ignored.
- A letter of Undertaking is expected to be provided as well. This letter is the foreign company’s undertaking which states that they shall close down their offices in Iran in case of some sort of violation of the rules of the state. It indicates that the state has the full right to revoke their business license if they fail to adhere to the rules and regulations imposed by the government body.
- The last step that involves the registration requirements of a foreign company in Iran is to ensure that all the documents provided by the said foreign company are certified by all the appropriate authorities. This includes the local registries, as well as being confirmed by the Foreign Ministry of the country from where the foreign investor is from and finally by the Iranian embassy of that country. Once all these have been ensured, the documents mentioned above should be translated into Persian by an official translator. The translator should be certified by the Judiciary. Once the translation is done, all the original documents should be then submitted to the Companies Registry to ensure the proper registration of the company.