Iran represents the second strongest economy in the Middle East, with an estimated nominal GDP of $397bn last year. It has the second largest population in the Middle East, a highly educated workforce and attractive tax enticements. Undoubtedly, this country has a great potential. If you are thinking about opening a company in Iran, our law firm in Iran can assist you in all the legal aspects that are involved, including the procedures required for a company registration in Iran.
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What are the business entities for setting up a company in Iran?
When opening a business in Iran, foreign investors have different options in terms of the types of business entities that can be registered in this country. These types of companies are:
• private joint stock company
It is the most commonly chosen business entity by foreign investors when opening a company in Iran. In order to be successfully registered, it is required to appoint at least two directors and three shareholders of any nationality. The minimum share capital for a private joint stock company is only 40 EUR.
• limited liability company (LLC)
An LLC in Iran can be opened by two shareholders and one director who can be of any nationality. The minimum share capital that is requested is only 1 EUR. This particular business entity is opened especially for trading activities.
• public joint stock company
This Iranian business entity is recommended for entrepreneurs who want to raise public capital. It requires minimum two directors and five shareholders of any nationality for successful registration. The initial capital requested is minimum 200 EUR. The public company has to issue at least 20% of its shares available to the general public and it has to be listed on the Iranian stock exchange.
• branch office
According to the laws in Iran, a branch office can be opened without an Iranian partner. The branch office is registered in Iran as an extension of the main company, having the same directors and shareholders. It is also necessary to appoint a resident legal representative in Iran.
Our team of lawyers in Iran will advise you on the best choice available in order to suit your particular needs.
Laws and regulations when opening a business in Iran
Iran has well-elaborated laws and regulations that are applied to local and foreign companies doing business Iran, such as Commercial Code Company Law, the Labor Law, social security regulations and so on. We also advise on company liquidation and a wide range of other legal matters in Iran. Our team of attorneys in Iran can assist you with finding out more about these laws and regulations, so that you can have a clear idea on what is required when opening a business in Iran. If you need more details more please contact us.