With a very young and dynamic population, Iran is fast becoming a thriving business community. They are one of the last remaining emerging business nations in the world who are slowly entering the global market. The economy of Iran has the capacity and framework to end up as the greatest economy in the Middle East and business interest in Iran has high rates of return. 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 foreign company registration consultant Iran, We guide foreign investors to register private limited liability company (LLC), Joint Venture (JV) and open branch office as FDI policy in Iran.
With all that being said, it is no surprise to see that Iran is fast attracting foreign investors and a host of foreign companies. All of them are eager to do business with Iran and establish some sort of company in the country. This is led to a number of other small foreign investors taking up an interest in Iran. However, as is the rule elsewhere in the world, in order to do business in a country one should get their companies incorporated. Similarly, in Iran, there are several steps that one has to follow in order to register their companies successfully. The following steps highlight the certain necessities and requirements of registering a foreign company in Iran.
All foreign companies who wish to incorporate in Iran should start their registration process at the Companies Registry in Tehran, the capital of Iran. Over there they will be required to follow certain documents which include.
- 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.
There aren’t exactly a whole lot of steps to be followed in order to register a company in Iran. The main work is to submit all the appropriate paper works and documents to the Companies Registry in Tehran. Once they are submitted along with the application for registration, it takes around 10 to 15 working days to issue the Certificate of Registration.