One of the youngest and most vibrant populations in the Middle East is found in Iran. They are rapidly gaining the reputation of being one of the world’s most prosperous corporate towns. They are regarded as the last developing commercial nation in the globe and are gradually making their way into the international scene. It is anticipated that Iran’s existing economic structure will enable it to surpass Saudi Arabia as the largest economy in the Middle East and eventually rank among the top trading nations in the world. In Iran, the return on investment is relatively good. Iran’s land, telecom, mining, and oil industries typically return over 44.9%, although the country’s GDP expanded at a rate of less than 14.0% in 2015. It is not surprising that the rest of the world is paying attention to Iran given all that is going on there. For international investors from all around the world, the economic stability and boundless potential have actually formed a lucrative deal. They all have plans to start businesses and create their own corporations in Iran. Currently, foreign investors will find their company with complete ownership of the shares and control over its operations. This could be a benefit to those companies that are prepared to invest more in the Iranian market by giving them more security and stability as outside investors.
Types of companies that can be registered
There are three types of businesses that might be registered for foreign investment opportunities:
- Joint Stock Company.
- Limited Liability Company.
- Branch company.
Registration of limited liability companies in Iran
A debt company is defined as an organization created by two people or more to carry out business operations and activities. Debt Company relies on the partners’ direct contributions to the partnership, not their purchases of shares. Once the capital in money has been absolutely provided and after non-cash contributions have been evaluated and delivered, the formation of an indebtedness partnership is regarded to have occurred.
Registration of joint stock companies in Iran
A corporation formed by three or more people to carry out business operations is described as a joint stock company. A joint stock company focuses on the partners’ direct contributions to the partnership rather than their purchase of shares. Once the capital in money has been totally donated and non-cash contributors have been evaluated and supplied, the establishment of a joint stock company is said to have occurred.
Branch office
Foreign businesses will open a branch office to conduct business in the Islamic Republic of Iran. The Branch, a distant firm that functions as a branch under the mother company, will carry out the following operations:
- After-sale support for the mother company’s goods or services.
- Executing the terms of the contract between Iranians and the parent firm.
- Prepare for the mother company’s upcoming investments in Iran.
- Work along with Iranian experts to conduct commerce in neighboring nations.
- Take part in Iran’s non-oil export sector.
- Regulating obligations related to receiving clearance from government agencies.
- Providing services in the areas of transportation, insurance, banking, and marketing, among others.
The subordinate of the mother company that executes the goals and business dealings for the mother company is a local branch office of a far-off corporation. The mother company’s name and responsibilities are used to run the branch office’s operations. Iranian law applies to the branch workplace regarding things like labor, social insurance, taxes, etc. The government upholds the same legal rights for a domestic branch office as it does for the mother company.
Company formation in Iran
Every field of activity is subject to a minimum national wage set by the Supreme Labor Council, which is updated yearly. According to the Supreme Labor Council, the compensation in 2015 was around US $230 per month ($2,760 annually). All employees must be enrolled in the social insurance system. In 2015, the national poverty rate for 4-person households in Iran’s capital was approximately $9000 per year. Even if they claim to get wages and regular payments outside Iranian territory, foreign people are not allowed to work in Iran without a work and employment permit.
