World  Business and Economic Analysis 


  • Welcome to Iran, the best destination for Investment in Petrochemical Industry




    An Interview with Mohammad Berami
    Managing Director of Siraf Energy









    Mohammad Berami started his petrochemical career with the Iranian National petrochemical company in 1973. During his 43-year tenure in the petrochemical industry, he assumed different responsibilities in Iranian as well as other reputed international companies.
    He served as the Managing Director and Board Member as well as Design and Maintenance Engineer for the Razi, Mobin, Zagros, Shiraz, Siraf and Tabriz petrochemical companies. He also held many respectable positions at several other petrochemical complexes in Iran.
    He holds a degree in electrical engineering from Shiraz University and completed his Master degree in Instruments Engineers from the University of Huddersfield Polytechnic in  UK .
    World Business Year talks to Mohammad Berami, the industry expert with more than 43 years of experience in the petrochemical sector, on investment opportunities and potential challenges for foreign investors in Iran.

    What is your assessment of the investment opportunities in the petrochemical sector in Iran?

    After the lifting of sanctions against the country, many international companies flocked to Iran with the purpose of assessing the potential investment opportunities in the country.  There are many investment opportunities in Iran, but it is the foreign investors who should have the courage to initiate the work. Often, many investors avoid facing the challenges and risks associated with investment in Iran.
    The Basf Company has had a meeting with the Iranian petrochemical company for investment in Assaluyeh.

    Any company that has success stories in petrochemical investment?

    The Razi Petrochemicals is one of the success stories for investment in the petrochemical sector. As matter of fact our expectation is very high. We expected that giant petrochemical companies will come to Iran for investment in new projects.
    Due to the privatization of the state-owned companies, the investment situation in the petrochemical industry has substantially changed. Earlier, the Iranian petrochemical companies had to sell their products to the Ministry of Agriculture. But now everything has been changed with privatization  in favor of private sector.  The petrochemical complexes can sell and export their products to domestic and international market.
    What makes Iran a different destination for investment compared to the other countries?
    There are many advantages of investing in Iran, including highly competitive prices for gas-based raw materials, rich ethane content in the country’s gas reserves, easy access to the ocean for export is main advantage, presence of highly  constructing service engineering  companies, cheap labor force and access to growing international market are big drivers for investors to invest in Iran.

    What challenges do you think investor face with in Iran?

    There is a bureaucratic red tape in Iran’s administration, but Investors should be patient because the government supports creating jobs. Investor should consider investing in other sectors like accommodations, hotels construction, health centers in Energy zones which can bring economic development   . There are  a few hotels but they are not sufficient and need more  investment in Hotel and accommodation sector .

    What is your message to International Investment community?

    Having 43 years of experience in petrochemical industry, has created in-depth knowledge for me on Iran’s petrochemical sector.  I can assure them that there are many people like me who are willing to share their knowledge and experience. We are even ready to tackle obstacle and challenges to pave the way for their investment with peace of mind.  

  • What Guarantees and protections Iranian government offer to foreign investor in Iran ?What is Fippa ?


    Guarantees and protections which offers by Iranian government :
    - Foreign Capital is guaranteed against nationalization and expropriation, and in such cases the Foreign Investor shall be entitled to receive compensation (Article 9 of the FIPPA).
    - Should laws or government regulations lead to prohibition or cessation of approved financial agreements within the framework of this Act, then the government shall procure and pay the resulting damages (Article 17 of the FIPPA & Article 26 of the bylaws). Foreign Investor can also benefit from MIGA Investment Guarantee.

    - The purchase of goods and producer services of the foreign investment is guaranteed in cases where a state-run organ is the only buyer or supplier of a product or producer service at a subsidized price (Article 11 of the bylaws).

    Rights and facilities:
    - Foreign investments subject to this Act shall enjoy the same rights, protections and facilities available to domestic investments in a non-discriminatory manner (Article 8 of the FIPPA).
    - The Foreign Investment and its profits may be transferred in foreign currency or goods (Articles 13-18 of the FIPPA).
    - Acceptance of foreign investments in all the production, industrial, agricultural, transportation, communications, and services  fields as well as in fields related to water, power, and gas  supply and energy fields
    - The possibility of the referral of investment-related disputes to international authorities (Article 19 of the FIPPA).
    - The possibility of land ownership in the name of the company (registered in Iran) in joint ventures (Article 24 of the bylaws).
    - Issuance of visas for three years in Iran for foreign investors, managers, experts and their immediate family members and the possibility of visa renewals  (Article 20 of the FIPPA & Article 35 of the bylaws).
    - The investors are notified of the final decision regarding their applications within at most 45 days (Article 6 of FIPPA)
    - Having a choice to choose the investment method in the project as FDI or Foreign Investment in all sectors within the framework of “Civil Participation”, “Buy-Back” and “Build-Operate-Transfer” (BOT) schemes (Article 3 of FIPPA).
    - Acceptance of investments by any natural or legal non Iranian or Iranian person utilizing capital of foreign origin and granting the facilities envisaged in FIPPA to them (Article 1 of FIPPA).
    - The foreign investor must choose an audit institute out of the audit institutes recognized by the Association of the Official Auditors of Iran to substantiate their financial and annual reports (Articles 1, 22-23 of the bylaws).

    is your final source for  Project finance and FDI for Middle east and   Iran's Economy ,Q&A for investment in Iran
    If you have any questions,please send your question to: This email address is being protected from spambots. You need JavaScript enabled to view it.

  • What Iran’s Special Economic Zones offers incentives to investors?


    The future of Iran  is intertwined with its new economic zones. These, in turn, benefit from the country’s political stability that raises investor confidence
    Traditionally, Iran has virtually bled natural resources; its main exports have been in the form of raw, unprocessed materials with minimal value addition.
    President Hassan Rouhani dictates increasing the role of private sector in economic development  , which will in turn generate thousands of jobs, attract the transfer of new technologies, and greater wealth in the form of higher export earnings and increased foreign direct investment.

    Invest in Iran

    The objective of the Special Economic Zones (SPZ) is to attract and promote investment for export-led industrialization and the processing of local raw materials, including leather, textiles and garments, lapidary, wood, and fish.

    There are several advantages and incentives for members of these schemes. Investors enjoy exemption from corporate tax and withholding tax on rent, dividends and interest; remission of all taxes on raw materials and capital goods; exemption from taxes and levies imposed by local government authorities on products produced in SPZs; and exemption from VAT on utility and wharfage charges.

    Beyond fiscal incentives, another benefit of exporting from Iran  lies in the country’s  that goods manufactured in special economic zones, as well as raw materials and imported CKD parts into the country is not subject to price regulation due to unutilized resources and allocated currency.

    If the processing of imported goods i changes the tariff of goods, the rate commercial benefit of the goods would be calculated equal the commercial benefit of raw materials and spare parts of the country.
    If you need Investment consultancy on investing in Iran Special Economic Zones please send your enquires to :This email address is being protected from spambots. You need JavaScript enabled to view it.  

  • What is real Image of Iran for Investment ,finance,banking ,capital market ?


  • What is the future for infrastructure financing in Iran ?


  • What makes Iran as a different country in the Middleast ? Time to Look at Iran for Investment


    Thanks to high human capital, high population (80 million ) natural resources, high technology of some companies in Iran and many other factors become Iran as hub for many businesses.
    Now many companies like Nestle, Carrefour(which is known hyperstar ),Jancbo(Turkish brand )and many other international companies who invest in Iran ,enjoy this market.
    After removal of sanctions many big missions enter to Iran just assess the situation.
    If you want to do business in Iran, there is some red tape but you will enjoy this market.
    You are considering investing in a large country with 80 million people and a relatively prosperous GDP per capita of almost $20,000.
    It had democratic elections this year where the reformists won again on a mandate to increase trade with the rest of the world in contrast to the populism seen in many developed countries. Its capital city is full of history yet cosmopolitan, and tourism has picked up recently.
    Yet foreign investment, particularly from the western world, is much lower than what you would expect in a country with such a large domestic market.
    That country is Iran. Is it time for contrarians to get in? An article published by Frontera News seeks to answer the question. It delivers business news, investment research and political risk analysis on the world’s frontier and emerging markets.
     High Chances of Success
    One of the main reasons investors take interest in frontier markets is to get in at the beginning of the economic cycle in the hopes of making outsized returns, as the economy enters a rapid growth phase.
    Iran is an interesting case where its GDP per capita is relatively high, but where there are a lot of severely underdeveloped industries due to almost 40 years of sanctions. Tourism is a very low hanging fruit, as is any trade with western companies.
    Bolstering chances of success are a large population (18th in the world) that is highly educated with a literacy rate above 95%. The population is also relatively young, with about half the population under the age of 30. Both these factors have contributed to a burgeoning startup and tech scene in Iran.
    When you compare the potential of Iran to other countries that have been held back due to sanctions–Cuba, the DRC, North Korea, or Sudan–the contrast is extreme in terms of how well Iran has done relatively.
    The case of Myanmar, a country that is booming now with the removal of sanctions and embrace of the western world, is a hopeful case for Iran, and Iran is way ahead of where Myanmar was when sanctions ended.

    World business Year help you to find best partner for your business and find investment opportunities that makes your business profitable and everlasting.
    Our team encompassed best consultant, lawyer, financial engineer, marketer and many other expertises.
    Please visit our website:

    If you have any question, please do not hesitate to contact us :
    This email address is being protected from spambots. You need JavaScript enabled to view it.

  • Who are you dealing with in Iran?Law in Iran Group is your final answer

    Farhad Emam
    Legal Consultant and International Trade Law Researcher

    A Brief Analysis of Private and Public Entities in Iran

    A main question during the due diligence process in Iran is about the legal qualification of the local counterpart or partner. The Iranian entity that is interested in dealing with a foreign company is either a company, or an organization, or a “prilic” entity as explained below. Foreign companies normally ask a basic and apparently simple question from their Iranian counterparts: Are you a public or a private entity? What are the best ways of evaluation and verification of the responses to be received from the Iranian entity? It all depends on the legal qualification of the Iranian entity as well as the control that is exerted on it by its real owners.

    I. Companies

    a. Public companies: In these companies, either more than 50% of the equity belongs to government, or it is a chartered company or it is nationalized or expropriated under law or by a court order.

    b. Private companies controlled by government, governmental organizations or public companies: Controlling equity, as defined by Article 1(7) of the Act on Execution of General Policies of Article 44 of the Constitution (the Act), means the percentage of equity that enables its owner to select the majority of members of the board of directors. Article 1(18) of the Act gives a wider meaning to the concept of control by defining a controlling company as an entity that through ownership of all or part of the shares or equity or through management of a company, or through other ways, controls economic activities of other entities in the market.

    c. Cooperatives: Under Article 44 of the Constitution, cooperatives are neither private nor public entities. However, shares of a cooperative company may be purchased by public entities up to 49% in less developed regions and up to 20% in other regions of Iran under Article 12(3) of the Act Amending Articles of the Four Development Plan. As a result, a cooperative company can get very close to becoming a public company.

    II. Organization (moas’seseh)

    Public non-governmental organizations are defined under Article 5 of the Public Audit Act (1987) as entities established under law to carry out public functions or to render public services. The Act Listing Public Non-Governmental Organizations and Entities (1994) must be consulted before entering into an agreement with the entities listed in the above Act. The most famous among them are four foundations: a) Mostazafa’an and Janbaza’an Foundation; b) Martyrs Foundation; c) Housing Foundation; and d) 15 Khordad Foundation. Note 2 of the Act states that provisions of the Act shall apply to the public non-governmental organizations that are under supervision of the spiritual leader only where it is authorized by him.

    III. Prilic (khosoolati) entities

    In some instances, it becomes really difficult to determine whether an entity is public or private. The reason behind this difficulty is that through a combination of complex equity purchase operations, privatization and management control, certain Iranian entities are standing somewhere between public and private ends of the existing spectrum. The term used in Persian language (khosoolati) is a combination of public (dowlati) and private (khosoosi). As a result, the term used in this text, i.e. “prilic” is a combination of private and public. Prilic entities are created to benefit from advantages of both public and private companies. As a result, special rules apply to their establishment, as well as start and termination of their operations. They will be explained in a separate post.

    Law in Iran Group
    A. Structure
    Law in Iran Group is an international legal network composed of lawyers and experts from 12 different countries including Iranwho have come together to provide legal information and services to the clients who are interested in doing business in or with Iran.
    B. Scope of services
    Law in Iran Group provides its clients with legal information and services related to oil and gas, foreign investment, technology transfer, intellectual property, transport, banking and finance, tax, labour and employment, legal structures and population movement (including immigration, as well as work and study abroad). Asubsidiary group called “STUDCARAN” is established for sharing information and rendering services related to study, work and stay in Canada.
    C. How to contact us
    Two websites, two channels and groups on Telegram and one group on Linkedin provide you with information about the above subjects and enable you to avail yourself of the services provided by "Law in Iran" and STUDCARAN groups:

  • Why Invest in Iran ?



    Untapped market + Population + Political Stability among Middle East Countries = Profitability

    If you are looking for a dynamic and prosperous country in which to invest, innovate, grow or expand your business on the world stage, Think Iran !

    Iran welcomes foreign business investments and offers many competitive advantages:

    A welcoming business environment

    Iran is the best country among Middle East countries to  do business.


    A strong growth record


    Unparalleled market access


    A highly educated workforce

    Iran ’s workforce is the most highly educated among Middle East countries


    Low business tax costs

    Total business tax costs in Iran are by far the lowest in the Middle East countries


    Political  Stability


    A great place to invest, work, and live

    Iran  is one of the most multicultural countries in the world, with world-class universities, a universal health care system and clean and friendly cities.

    If you do not persuade, Please consider attached file In-depth Analysis to Iran.



    Official name

     Islamic Republic of Iran 

     Head of State

     President H.E. Dr. Hassan Rouhani

     National Day

     11th of February (Islamic Revolution of Iran-1979)




     1,648,196 sq km

     Land boundaries  4,137 km
     Sea boundaries  2,700 km (Including the Caspian Sea)
     River boundaries  1,918 km
     Border countries  Afghanistan, Azerbaijan (Nakhichevan), Armenia, Iraq, Pakistan, Turkey, Turkmenistan

     Mostly arid or semi-arid, temperate along Caspian coast and mountainous temperate along west and north-west.

     Natural resources  Petroleum,  natural  gas, coal, chromium, copper, iron ore, lead, manganese, zinc, sulfur 
     Land use (1998):  
     Arable land  300,000 sq. Km                  18.2%
     Meadows and pastures  900,000 sq. Km                   54.6%
     Forest and woodland  120,000 sq. Km                     7.3%
     Other  258,000 sq. Km                   15.7%
     Irrigated land  70,000 sq. Km                       4.2%     
    Agricultural products  Wheat, rice, barley, potato, grains, sugar-beet, cotton, fresh & dried fruits, dates, pistachio, fruits, nuts,  poultry, meat, dairy products, wool; caviar, flowers and medicinal plants.
     Population  76.03 million (2012)
     Population growth rate  1.34% (2012)


    Muslim                                              99.56%

    Zoroastrian, Christian & Jewish              0.44%

    Languages   Persian and Persian dialects, Azeri, Kurdish, Lori, Baloochi, Arabic
    Literacy (2011)  Total      84.2%
     Currency Rial (IRR)
    GDP   448.2 billion US$ (2010)
    GDP per capita  6030 US$ (2010)
     GDP growth rate  6.4 % (2010)
     Total Imports 53451  million US $ (2012) 
     Total Exports 98033 million US $ (2012)
    Foreign Direct Investment   4870 million US $ (2012)
     Industries Oil and gas, steel, aluminum, copper, electric and electronic equipment, cement & other building materials, metallurgy, home appliances, iron, textile, rugs and carpets, tapestry, miniature, ceramic, food processing (particularly sugar refining & vegetable oil production), petrochemicals, and car manufacturing & assemblies 
    Electricity  Production: 232,955 GWH (2010) 
     Railways networks  12000 km (2013)
     Road networks  220000 km (2013)
     Ports  11 commercial ports
     Airports  54
  • Why Iran can be your best destination for business or Investment ?


    Iran is untapped market for many  business.
     In all over the world there are huge gap between supply and demand .but in Iran you will see different story. There is huge demand in Iran for professional services,best quality products .That is why now many international companies like Nestle, Henkle ,Aujan,Hyperstar .We believe that there are   red tap in Iran that makes you tired .but at the end Investor or businessman reach  success. Why?
    Because return of investment in Iran is very high in comparison other countries.
    Worldbusinessyear team working closely with Investors, business community to pave the way business and investment opportunities for them.
    If you have any questions please send us your questions to us:
    This email address is being protected from spambots. You need JavaScript enabled to view it.

  • Why Iran Oil Export Surge Faster Than Expected ?


    According to the report, More than 25 European and Asian-owned supertankers are shipping Iranian oil, data seen by Reuters show, allowing Tehran to ramp up exports much faster than analysts had expected following the lifting of sanctions in January.
    "Iran has ramped up [oil export] harder and faster than expected," Citi analysts said.
    Iran was struggling as recently as April to find partners to ship its oil, but after an agreement on a temporary insurance fix, more than a third of Iran's crude shipments are now being handled by foreign vessels, Reuters reported.
    "Charterers are buying cargo from Iran and the rest of the world is OK with that," said Odysseus Valatsas, chartering manager at Dynacom Tankers Management. Greek owner Dynacom has fixed three of its supertankers to carry Iranian crude.
    Some international ship owners remain reluctant to handle Iranian oil, however, due mainly to some US restrictions on Tehran that remain and prohibit any trade in dollars or the involvement of US firms, including banks and reinsurers.
    Iran is seeking to make up for lost trade following the lifting of sanctions imposed in 2011 and 2012 over its nuclear program.
    Port loading data seen by Reuters, as well as live shipping data, show at least 26 foreign tankers with capacity to carry more than 25 million barrels of light and heavy crude oil, as well as fuel oil, have either loaded crude or fuel oil in the last two weeks or are about load at Iran's Kharg Island and Bandar Mahshahr terminals. The resumption of international shipping of Iranian oil has been made possible by an increase in interim, limited insurance cover by "P&I clubs"—maritime mutual associations that provide "protection and indemnity" insurance to shippers.
    The International Group of P&I Clubs, which represents the world's top 13 ship insurers, increased the amount covered by so-called "fallback" shipping insurance from 70 million to €100 million ($113.36 million) in April.
    "The strong interest of the market in these trades pushed all the stakeholders to solve all the problems... and almost all P&I Clubs have granted their insurance," said Luigi Bruzzone of ship broker Banchero Costa.

      Near Pre-Sanctions Levels

    With international vessels supporting Iran's own tanker fleet, traders said its oil exports were now close to pre-sanctions levels of around 2.5 million barrels per day.
    Traders said that if Iran was close to capacity, it might not be able to offset supply disruptions that have occurred in other regions recently, including Nigeria or Libya, and which have already helped tighten the market and push oil prices to around $50 per barrel. Iran's oil exports were between 2.1 and 2.3 million bpd in April and May, up from 1.3 million bpd a year ago, when Iran was shut out of the European market and depended on limited shipments to Asian buyers.
    Asia is the main destination for crude shipped by foreign vessels, with India, China and Japan the biggest takers, but at least four international tankers are also heading for Europe.
    India, in particular, is playing a lead role as its demand soars and refiners such as Essar Oil, Reliance Energy, Hindustan Petroleum Corp and Bharat Petroleum Corp enjoy good ties with Iran. The non-Iranian companies currently chartered to carry its oil include Chinese state-controlled shipper China Shipping Development, PetroVietnam and Japan's Idemitsu Kosan.
    Greek, Turkish and Seychelles-owned tankers are also shipping Iranian crude.

      Insurance Risk
    The "fallback" cover is designed to offset any shortfall in payments from US reinsurers, who are still not allowed to deal with Iran. "We are not surprised to see the increase in Iranian cargoes given the progress made by the P&I clubs and obviously the increase in Iranian production," said Brian Gallagher, head of investor relations at leading Belgian tanker owner Euronav, which itself is not involved in Iran yet.
    "We're interested in such trade... (but) it will still take time for Iran to be fully integrated, as there remain restrictions around dollar-denominated transactions."
    Indeed, while the partial lifting of sanctions means foreign tankers can now transport Iranian oil, risks remain because large accidents might not be fully covered.

  • World Business Year is recruiting Freelance Finance and Loan Syndications Consultants


    We as World Business Year International Investment and Finance company  are looking for an open minded and dedicated project finance manager to deal with European Banks  as well as search for interesting opportunities to animate our network and offer to our member regions.
    If you like the idea and you wish to be part of an international and motivated team, do not hesitate and apply now!
    We need  international financier and manager with advisory and principal origination and execution experience in project finance, corporate finance, M&A, lending, quoted and private equity, capital markets, venture capital and restructuring in both developed and emerging markets and with experience in management, business development, board and investment committee membership.
    Project Finance Consultants

    World Business Year –  is looking for a Project Finance Manager to assist our team on the drafting and implementation of international and European Banks  especially with regards to financial and control matters and to contribute to the successful increase and development of the project portfolio.


    – Search for funding opportunities in close collaboration with the EU Banks
    – take charge of the drafting of project proposals especially with regards to financial and administrative aspects (e.g. preparation of budget, preparation of administrative documents for the project submission, etc), in close collaboration with the EU Banks.
    – implement and manage the legal, administrative and financial framework of projects (e.g. prepare time sheet, ensure appropriate follow-up of all project-related legal and contractual issues including procurement and management of sub-contracted services, managing and supervising the project budget, etc)
    – perform the implementation of project finance  activities according to the time schedule and budget
    – Preparation and processing of technical and financial project report and secure appropriate records to document project activities
    – Presentation of financial project matters during internal and external events
    – manage relations with European Commission, Lead Partner and project partners
    Transversal tasks
    Being a small team all staff members are asked to perform some transversal tasks such as policy monitoring and some secretarial work.
    Your profile
    – proven experience in successful EU/international project and tender applications, especially with regards to the financial and administrative aspects (drafting budget, negotiation with the Commission, grant agreement, etc)
    – at least 3 years’ experience in financial project management and implementation
    – Previous experience in the management of complex partnerships
    – Strong interpersonal skills and management of inter-personal relations in international environment
    – Problem solving attitude and time management skills
    – Strong team spirit and eager to contribute to common objectives
    – Sound knowledge of EU (and other) funding programmes and opportunities
    – Perfect English, other language(s) will be an asset
    What we offer
    An international environment with interesting and challenging field of activities

    Please send your cover letter and CV to This email address is being protected from spambots. You need JavaScript enabled to view it.
    Deadline for application: 13 February  2017
    only selected candidates will be contacted for an interview
    Starting date: as soon as possible

  • Worldbusinessyear is your final source to get in-depth analysis of Iran's Economy ,Q&A for investment in Iran




    General Information

    Foreign Investment Promotion and Protection Act (FIPP)
    Admission Regime
    Foreign Capital
    Foreign Exchange Transfers Tax & Customs Issue
    Tax & Customs Issues
    Tax and Customs Facilities and Exemptions

    Other Facilities and Exemption

    Contact Details
    This is a compilation of the enquiries frequently asked by potential investors willing to invest in the Islamic Republic of Iran. We hope the answers provided herein, in addition to the policy issues, would assist parties, and provide them to have access to a package of comprehensive information in respect of the legal framework for admission of investments and the manner to obtain the relevant Investment License. You may find certain questions which do not necessarily have any direct relevance with Foreign Investment as a whole ,but in light of the need for preparing a multipurpose source of information, we have tried to compile a variety of likely inquiries to respond to any question relating to doing business in Iran.
    Obviously , those investors who may need more detailed information on any subject , are recommended to refer to other WORLDBUSINESSYEAR EXPERT  publications and guides;or if they wishthey may communicate directly or have meetings with the WORLDBUSINESSYEAR EXPERT  staff who are in a position to welcome them by providing answers to any other question which is not addressed in this guide as well .
    Readers are kindly recommended to refer to the table of content before searching the answers to their questions in each chapter

     Under provisions of Iran's Foreign Investment Promotion & Protection Act (FIPPA),foreign investors investing within the framework of contractual arrangements such as buy-back shall also have the right to make transfers abroad by using the mechanism of purchasing foreign exchange from the banking system of Iran.  In consideration of their specific nature of investment and as stipulated in the Note of Article (23) of the Implementing Regulations of FIPPA, these investors also have the privilege to make the transfers through export of goods, without giving up the right to purchase foreign exchange from the banking system.
    Chapter one
    General information
    1.Is Foreign Investment permitted in Iran?
    Foreign investment is permitted in accordance with the prevailing laws and regulations of the Country. All foreign investors are permitted to invest, for the purpose of development and producing activities, in all areas of industry, mining, agriculture and services. However, from the standpoint of the Iranian government, only those investments shall be eligible to enjoy the privileges and protections under the Foreign Investment Promotion and Protection Act (FIPPA) that have obtained the required license under the FIPPA.
    2.What objectives are to be achieved by foreign investment?
    The main objectives are:
    • Enhancing economic growth;
    • Increasing employment opportunities;
    • Access to and development of new technologies and managerial skills;
    • Upgrading quality of products and boosting export capabilities.
    3.Under what legal or contractual framework, foreign investment may be admitted in Iran?
    Foreign investment in Iran is admitted under all forms of legal participation (Foreign Direct Investment) and/or contractual arrangements. By contractual arrangements we mean all forms of project financing methods within the framework of civil participation, buy back arrangements, and different types of Build, Operate and Transfer (BOT) schemes.
    4.How do you define foreign investment?
    Foreign investment is defined as employment of capital in an activity in which a level of risk involved.FIPPA classified foreign investment under two broad categories :
    a) Legal participation (direct investment): is defined as a direct involvement of a foreign investor in the equity capital of a new or existing Iranian company. There is no restriction on the level of shareholding as well as percentage of shares belonging to foreign investors in Iranian companies. The right of foreign investor to run and control a company emanates from and is dependent upon his direct contribution in the equity capital of the concerned company.
    b) Contractual arrangements: is defined as a set of mechanisms under which the utilization of foreign capital is solely based on agreements reached by the parties to a contract. In other words, the rights of the foreign investor is not yielded with his direct participation in the capital of the recipient Iranian firm, but through the arrangements agreed upon under a contract. This type of investment may be carried out in all sectors of economy. Under contractual arrangements, the return of capital and accrued profits have to be sourced only out of the economic performance of the project in which the investment is made without being dependent upon a repayment guarantee by the government, by the banking system as well as state owned companies.
    5.In what sectors foreign direct investment is permissible?
    Foreign direct investment is permissible in all areas open to Iranian private sector.
    6.In what sectors foreign investment under contractual arrangement is permissible?
    Foreign investment under contractual arrangement is permissible in all sectors of economy. However, foreign investment in sectors reserved for the Government may only be carried out under contractual arrangements.
    7.What legal structure do you recommend for foreign investment?
    There are seven types of juridical entity or company which can be established under the Iranian Commercial Code. From among all these different types, Joint Stock Company, in which the capital is divided by shares, is the most common and acceptable type of company which can be recommended to foreign investors (For further information please refer to "Establishing a Joint Stock Company in Iran" published by OEITAI).
    8.Is it obligatory to have local partner(s)?
    Of course not. It is by no means obligatory to have local partner, but in most cases foreign investors themselves are willing to take advantage from their local partners for the reason that they are more familiar with the business environment, regulatory and administrative requirements and opportunities locally available.
    9.Is there a ceiling for foreign investment in Iran?
    There is no minimum and maximum for foreign investment in respect of percentage of shareholding, nor is any restriction on the amount of investment for foreign investment in Iran.
    10.If there is no restriction imposed in Iran, then what message a prospective foreign investor should get from the ratios of 25% and 35% referred to in Para (d) of Article (2) of FIPPA?
    The ratios referred to in the said Para have nothing to do with the shareholding percentage of foreign investors in a single investment case. As formerly explained, no restriction with respect to the ceiling of foreign participation is imposed in Iranian companies. In fact, these ratios illustrate the proportion given to the value of goods and services produced by foreign investment in the global economy in each sector and subsector respectively, verified at the time of issuance of the foreign investment license (i.e., value of foreign products in GDP).
    11.Is foreign investment permissible in oil and gas upstream activities?
    Foreign investment in oil and gas upstream activities within the framework of contractual arrangements is permissible, but Foreign Direct Investment (FDI) in such areas is not permitted.
    12.Is it permissible to use foreign trade marks and names in foreign investments?
    Application of trade marks and names is permissible in all areas of economic activity.
    13.Is foreign investment allowed in companies quoted in the Stock Exchange Market?
    There is no restriction for investment in companies quoted in the Stock Market. Foreign investment in these companies are eligible to enjoy the protections available under FIPPA, in the same manner as is available to foreign investment outside the Stock Market .
    14.How do you define Special Economic Zones in Iran and in which areas of the Country these so-called zones have so far been established?
    Special Economic Zones are restricted customs areas in which import of goods, machinery and equipments is not subject to the general import/export regulations. The zones may have been established for different reasons and objectives. Some of them are established for the purpose of warehousing whereas some, in addition to warehousing of goods, are designed for setting up processing and production line. At present the number of Special Economic Zones reaches to 17 (For more information please refer to website .
    15.Is there any difference between investments made in Free Trade Industrial Zones, Special Economic Zone and the mainland?
    Investment in Free Zones is subject to especial regulations governing such investments. Iranian Free Zones at present comprise six areas by the name of Gheshm, Kish, Chahbahar, Arwand, Aras and Bandar Anzali. Areas known as Special Economic Zones are part of the mainland in which all investments are considered to be investments in the mainland. Taking into consideration the applicability of Foreign Investment Law to the territory of the Islamic Republic of Iran, all foreign investments realized in Free Trade and Industrial Zones may also enjoy the privileges of FIPPA, provided that the relevant formalities for obtaining the investment license have been followed .
    16.What is meant by the terms Iranian Company and Foreign Company, from the standpoint of Iranian laws and regulations?
    The term Iranian Company refers to a company incorporated and registered in Iran according to Iranian Commercial Code, even if a hundred percent of its shares or stocks belong to foreign natural or juridical persons. The term Foreign Company refers to a company incorporated and registered outside Iran.
    17.Is it possible for foreign companies to establish legal bases in the form of branches or representative offices in Iran?
    Of course yes. Any foreign company, for the purpose of expanding its commercial activities, performing its contractual obligations, carrying out marketing activities, etc. may establish a legal permanent base in the form of branch or representative office in Iran. For establishing a branch or representative office certain procedure should be followed under the Law for Establishing Branches and Representative Offices. For this purpose the applicants are advised to refer to the General Directorate for Registration of Companies and Industrial Property.
    18.Is the establishment of branch or representative offices considered as foreign investment?
    Establishing a branch or representative office is not considered as foreign investment. In fact, foreign investment can be realized by way of establishing a new Iranian company, participation in an existing Iranian company and/or entering into contractual arrangements with Iranian recipient entities.
    19.What are the features of Industrial Estates and what facilities are available in those areas?
    Industrial Estates are prefabricated Estates designed and constructed by the Industrial Estates Company of Iran, affiliated to the Ministry of Industry and Mines, readily available for investors in all industrial poles throughout the Country. Even in certain Estates, factories and industrial workshops are offered for purchase. The important feature of these estates is availability of infrastructural utilities such as water, power, gas, telephone and quick access to the main transportation network of the Country.

    Chapter Two
    Foreign Investment Promotion And Protection Act
    20.What law protects foreign investment in the Islamic Republic of Iran?
    The law protecting foreign investment in Iran is the Foreign Investment Promotion and Protection Act ratified in 2002 which is hereinafter referred to as FIPPA. The scope of applicability of the FIPPA extends to the territory of the Islamic Republic of Iran under which all foreign investors may invest in the Country and enjoy the privileges available there under.
    21.What is the role of the regulations governing investment in Free Zones?
    Although foreign investment in Free Zones is governed by especial regulations, foreign investors may also invest in such zones under Foreign Investment Law and take advantage of its protections.
    22.What is meant by the term protection under FIPPA?
    The term protection refers to a series of certain rights and privileges which are extended to investors under FIPPA. In other words, investments carried out under any law other than FIPPA shall not be eligible to enjoy such rights.
    23.What are those rights and privileges?
    Fundamental rights recognized under FIPPA in favour of foreign investors are as follows:
    - The right to transfer profits (dividends) as well as capital and gains on capital in foreign exchange;
    - The right to receive compensation resulting from expropriation (deprivation of ownership) and nationalization of foreign capital;
    - The right to receive compensation resulting from the passing of laws or Cabinet Decrees causing prohibition or interruption in the implementation of financial contracts of foreign investors;
    - The right to enjoy equitable treatment accorded to domestic investors.
    24.Are there any other facilities and privileges available to foreign investors?
    Other facilities and privileges contemplated under FIPPA and its Implementing Regulations are as follows:
    - Convertibility and transferability of the funds resulting from various investment and transfer of technology agreements;
    - Possibility of submission of investment disputes to international tribunals;
    - Recruitment of foreign technicians in affairs related to investment projects;
    - Export of goods and services without any commitment to reintroduce export proceeds to the Country (i.e., no surrender commitment requirement) ;
    - Direct access to and possibility of withdrawal of export proceeds out of Escrow accounts established in banks outside the Country;
    - Inapplicability of price control, distribution as well as local content and manufacturing requirements.
    25.What issues are specified in the investment license?
    Many issues such as area of investment, Iranian and foreign shareholders, type and method of investment, volume and percentage of foreign investment, the manner for transfer of dividend and profit gained as well as other terms and conditions pertinent to a foreign investment project are to be specified in the investment license.
    26.Who is qualified to invest in Iran?
    All foreign natural and juridical persons, international organizations, institutions and companies as well as Iranian natural and juridical persons are qualified to invest in the Country in accordance with the provisions of FIPPA .
    27.How investments by Iranian nationals can be covered under FIPPA?
    Investments by Iranian nationals can enjoy privileges of FIPPA on the condition that their capital has been sourced from foreign origin and, further to that, the investor has submitted documentary evidence proving their economic and commercial activities outside the Country.
    28. Is the validity of the investment license limited time wise?
    Yes. Upon the notification of investment license, the foreign investor is required to bring an appropriate portion of his capital into the Country, within a period determined by the investment board on the basis of the peculiarities of the investment project; otherwise the investment license shall be null and void.
    29.Is it possible to extend the validity, and how?
    Yes, foreign investor may apply for the extension of the validity of the investment license, prior to expiration, by way of submission of justifiable reasons. The investment board will review the application and determine a new period for importation of capital, upon the approval of the application for extension.
    30.Are foreign state-owned companies authorized to invest in Iran in accordance with FIPPA?
    Foreign state-owned companies may invest in Iran in accordance with FIPPA, and enjoy privileges available under the law.
    31.What are the sectors open to foreign investment in Iran under FIPPA?
    Sectors open to foreign investment in Iran are vastly diversified and include all producing activities for the purpose of development in all areas of industry, mining, agriculture and services including tourism sector.
    32.Does FIPPA consider pure commercial activities as foreign investment?
    Indeed, pure commercial activities are not considered as foreign investment. However, should they be complementary to the producing activities in connection with an approved project, they can be taken into account as foreign investment.
    33.What type of service activities are eligible to be covered under FIPPA?
    Foreign investment in service sector including tourism is eligible to be covered under FIPPA.
    34.Is the legal protection under FIPPA extended to foreign investments automatically?
    Extension of legal protection to foreign investments is not an automatic phenomenon, but subject to obtaining the required investment license.
    35.How and under what condition an investment already carried out but not covered under FIPPA can enjoy FIPPA’s coverage?
    Investments already carried out but not covered under FIIPA may, upon application for obtaining an investment license and subject to creating added value, enjoy the protections available under FIPPA.
    36. Is foreign investment permissible in existing firms? If yes how?
    From the standpoint of FIPPA, there is no difference between investment in a greenfield project - a new company - and investment in an existing economic entity. All prospective foreign investors may at any time proceed for investment in a new (greenfield) project and/or an existing economic entity. However, admission of foreign investment in existing firms is subject to creation of new added value which may result from increase in investment, upgrading managerial skills, development of exports, and improvement of technology level in the same entity.
    37.How foreign investment can take place in an existing Iranian company?
    From the standpoint of admission regulations, such investments can be covered under FIPPA and enjoy its privileges upon completion of admission procedure and obtaining the investment license, on the condition that they bring about value addition .
    38.In what manners a foreign investor can invest in an existing Iranian company and become a shareholder?
    There are two ways:
    1. Acquiring shares of a company based on agreed terms and conditions.
    2. Subscription of the shares resulting from the capital increase of the company by way of assigning the first refusal rights of the existing shareholders to the foreign investor.
    39.Under what legal framework BOT contracts are implemented?
    For the purpose of conducting BOT contracts including BOOT, BOO, etc., the foreign investor may proceed either by establishing a branch office in Iran or by way of incorporating an Iranian company (i.e., Project Company).
    40.What is meant by proprietary rights?
    Proprietary rights are certain rights arising from having ownership over property and assets and/or rights assigned to the recipient under a contract. This right has been recognized in FIPPA and is applicable to a series of rights including right of ownership, right of operation and profitability, as the case maybe.
    41.What is meant by assignment of proprietary rights in BOT contracts?
    In BOT contracts assignment would cover the ownership right as well as the rights acquired under the contract which can be assigned to Iranian party of the contract.
    42.Are foreign investment companies authorized to open bank accounts outside Iran?
    Foreign investment companies are authorized to have bank accounts for the purpose of depositing their export earning. This would facilitate any and all payments due to the foreign investors by way of having a quick and direct access to export earnings from the export of products and services.
    43.Is there any requirement for reintroducing export earnings to the Country for joint venture companies and investee firms?
    No, no commitment for the return of export earnings is required. Export earnings are at free disposal of the exporter, to be used at his own discretion.
    44.Can foreign investor insure his investment? What kind of insurance?
    Foreign investor may insure his investment against non-commercial (political) risks with an insurance agency of his respective country. In the event a payment is made to the investor under the insurance contract, the insurer in the capacity of the investor’s subrogee may apply for compensation resulting from the rights the investor is originally entitle to claim.
    45.Which authority is competent to settle investment disputes between Iranian and foreign investors or between a foreign investor and the Government?
    In general, an investment dispute between Iranian and foreign investors can be referred to domestic or foreign courts or to an international arbitration based on the (prior) agreement of the two parties. However, should the Iranian party to the dispute be a government sector or company, referral of the dispute to foreign courts or international arbitration can be done only upon observance of relevant legal formalities by the Iranian (government) party. To this effect, referral of disputes to international courts and arbitration based on prior agreement between the Iranian Government and the investor's respective government has been accepted in bilateral treaties.
    46.How investment disputes may be settled?
    Investment disputes may be classified in 3 categories, each of which may be settled in a different manner:
    • Disputes between local and foreign investors: This type of dispute may be settled, in the first place, through friendly negotiations. In the event a settlement is not reached, the dispute may be referred to domestic courts, foreign courts and/or international or ad hoc arbitral tribunals. There is no legal impediment for accepting any of the aforementioned methods as is mutually agreed between the parties to the disputes.
    • Settlement of disputes between an investor and the host government: As contemplated in Article19 of FIPPA, in the event a dispute between an investor and the Iranian Government is not settled through negotiations, the investor may approach through either of the following options:
    a) Referring to domestic courts;
    b) Referring the dispute to the competent arbitration tribunal stipulated in the Agreement on Reciprocal Promotion and Protection of Investment with the investors` respective government (i.e. Bilateral Investment Treaties: BITs).
    • Settlement of disputes between host and home governments: This type of disputes are not usually of the same nature as disputes raised between investors. Moreover, they are attributed to the commitments and obligations of the respective governments vis-à-vis in respect of the implementation and interpretation of the contracts. Settlement of such disputes is also included in the bilateral and multilateral investment agreements.
    47.Is ownership of land by foreign nationals permitted in Iran?
    Yes. Ownership of land to the extent typically required for personal use by foreign nationals is permissible. Recognition of such ownership is dependent upon a specific permission from the Ministry of Foreign Affairs.
    48.Is it permissible to own land by foreign nationals for the purposes other than personal use (i.e. industrial, agricultural, services, etc.)?
    The answer is no. On the overall, the ownership of land for the aforementioned purposes which are considered to be beyond personal use, is not permitted.
    49.Then how the “ownership of land” in foreign investment projects is resolved?
    As explained in previous answer, ownership of land in the name of foreign nationals is not permitted. However, in the event the implementation of foreign investment project results in establishment of an “Iranian Company”, ownership of land in the name of that company which bears an Iranian identity, would be permissible.
    50.What is meant by the term “ Iranian Company”?
    Iranian company is a company established and registered in Iran in accordance with Iranian Commercial Code, regardless of the identity and nationality of its shareholders or partners.

    Chapter Three
    Admission Regime
    51.Which authority is responsible for admission and protection of foreign investments in the Islamic Republic of Iran?
    The Organization for Investment Economic and Technical Assistance of Iran (WORLDBUSINESSYEAR EXPERT ) is the sole government authority which in accordance with FIPPA is legally empowered to admit and extend legal protections to foreign capital. The license for foreign investment under FIPPA is also released by WORLDBUSINESSYEAR EXPERT .
    52.Is it obligatory to obtain a license for foreign investment?
    For those investment to be covered under FIPPA, it is required. Such a license is released when signed by the Minister of Economic Affairs and Finance.
    53.Does it mean that each single investment under FIPPA requires a specific license?
    Yes. Foreign investment in any single project covered by FIPPA, requires a separate license.
    54.What is the procedure for issuance of a foreign investment license? What documents are required for the issuance of such a license?
    The procedure for issuance of an investment license is short and simple. Upon submission of the official application for foreign investment addressed to WORLDBUSINESSYEAR EXPERT , the application will be put in the agenda of the Foreign Investment Board for review within 15 working days, and subsequently a draft license will be communicated to the foreign investor for confirmation. Should the foreign investor be satisfied with the draft, upon his confirmation, the final investment license will be issued and released. The documentation required include the filled-in application form along with all supplements/annexes, as the case may be, and other documents indicated in the last page of the application form.
    55.Which services could be provided to foreign investors by WORLDBUSINESSYEAR EXPERT ?
    The organization can be addressed and consulted for any and all issues foreign investors come across. To this end, the investor is in touch with only one single organization through the Center for Foreign Investment Service, which will result in time and cost saving for them.
    56.What is the objective behind establishment of the Center for Foreign Investment Services ?
    For the purpose of facilitating and accelerating the attraction of foreign investments into the Country, the Center for Foreign Investment Services was established at the premises of O.I.E.T.A.I., comprising the representatives of relevant authorities. This center acts as a focal point for the referrals by foreign investment applicants to the relevant Organizations.
    57.Does the Organization provide any specific services to foreign investors other than consultancy services?
    Of course yes. The Organization, besides offering the consultancy services to foreign investors, provides the following services:
    1. Provision of information related to all laws and regulations pertaining to foreign investment;
    2. Introducing investment opportunities in the Country;
    3. Coordinating with different authorities with respect to applications for foreign investment;
    4. Finding appropriate partners/parties, being local or foreign;
    5. Contributing towards settlement of disputes between investors;
    6. Organizing and arranging meetings and/or appointments with relevant authorities.

    Chapter Four
    Foreign Capital
    58.What are the types of foreign capital?
    According to FIPPA, there are various types of foreign capital which, in addition to cash capital, includes all types of non-cash capital comprising of machinery, equipments, parts, raw material, know-how and expertise services. (For more information please see Article(2) of the Implementing Regulation of FIPPA).
    59.Are all kinds of foreign exchange acceptable as cash capital?
    In fact, those kinds of foreign exchange which are acceptable to the Central Bank of the Islamic Republic of Iran, could be registered as cash capital.
    60.How foreign cash capital is imported into the Country?
    Foreign cash capital shall have to be imported into the Country through banking system and/or the official channels acceptable to the Central Bank of the Islamic Republic of Iran. Evidently, the imported foreign exchange shall be among those currencies acceptable to the said Bank.
    61.Is it obligatory to convert the imported foreign exchange into Rials?
    That portion of imported foreign exchange required to be converted into Rials at the discretion of the investor, shall be purchased by the recipient bank at the current rate, and its equivalent in Rials shall be deposited in the account of the J.V.C. or the investee firm.
    62.Is it possible for the foreign investor not to convert the imported foreign exchange into Rials but use it for foreign purchases and orders related to the investment project?
    Yes, as the foreign exchange may be converted into Rials, it is also possible to deposit the same in the foreign exchange account of the J.V.C. or the investee firm to be used, under the supervision of the Organization, for payments related to foreign orders and/or other necessary expenses of the investment project. Depositing foreign exchange without conversion into Rials protects the foreign investor against foreign exchange fluctuations, and provides the opportunity to use it at his own discretion, whenever required.
    63.What is the applicable rate for the conversion of the foreign exchange imported into the Country?
    The rate applicable for the conversion of cash funds imported by the foreign investors is the prevailing rate of the Country's official monetary network or the free (market) rate as acknowledged by the Central Bank of Iran.
    64.Is it necessary to valuate the foreign imported capital before its registration?
    Yes. Valuation of capital, whether in cash or kind, is necessary. In both cases, the bank's conversion rate on the date of importation shall be the basis for valuation.
    65.What formalities are required for importation of machinery, equipments, parts and raw materials (i.e., non-cash capital)?
    In principal, importation of non-cash capital items related to foreign investment projects are not subject to the formalities of importation of commercial commodities. Non cash items of any type can be imported into the Country upon recommendation by WORLDBUSINESSYEAR EXPERT  based on the approved list, and the statistical (order) registration with the Ministry of Commerce.
    66.Does it mean that importation of non-cash capital is free from local content requirements, allocation of foreign exchange and opening letter of credit?
    That is true. It is not necessary to comply with the local content requirement, allocation of foreign exchange and opening letter of credit.
    67.Is there any charge applicable to importation of foreign non-cash (in-kind) capital?
    Except for machinery applicable in manufacturing and mining projects, foreign non-cash capital, the same as other goods, is subject to payment of import duties,
    68.What criteria are to be considered for importation of know-how?
    Technical know-how and specialized services are considered as acceptable types of foreign capital, so should be valuated and registered then as foreign capital. However, the opinion of the relevant Ministry shall be sought before the importation of technical know-how.
    69.Is it permissible to pay license fee or royalty?
    Sure. In cases where technical know-how is not considered as part of foreign capital, the relevant sums and/or approved royalty are payable to technology supplier.
    70.What criterion is set for payment of license fee or royalty to foreign parties?
    In any and all manners of payment, the value of imported raw material shall be the basis for calculation of royalty and or license fee. This net amount, after deduction of imported materials value, shall be paid to whom granted the license. In other words, according to prevailing policy, payment of royalty and license fee is calculated on the basis of domestic added value.
    71.Is it possible to register patent right and trade mark in Iran?
    According to Patent and Trade Marks Registration Law, industrial and intellectual property rights such as patent rights, trade marks and names, etc. can be registered and protected in Iran.
    72.Is it necessary to provide the list of non-cash capital before importation of the same?
    Yes. Prior to importation of non cash capital, the foreign investor is required to submit to the WORLDBUSINESSYEAR EXPERT  the detailed list of the same comprising technical specifications, manufacturer(s)’ name, year of manufacture and price, along with relevant catalogues. Upon confirmation of the list, the said non-cash capital can be imported into the Country in one or more shipments at the discretion of the investor without any other specific formalities.
    73.Is a prior review of technical know-how necessary?
    Agreements related to specialized services, to be imported in the from of capital or to be paid for in other ways, shall be submitted to WORLDBUSINESSYEAR EXPERT  along with the foreign investment application. The Organization will then coordinate and consult with the relevant Ministry on the necessity of the know-how as well as its value.

    Chapter 5
    Foreign Exchange Transfers
    74.What is meant by the term "foreign exchange transfers"?
    The term “foreign exchange transfers” refers to transfer of all sums resulting from the performance of a foreign investment and/or other sums to be transferred in the from of foreign exchange. Such transfers are categorized in two:
    a. Capital transferssuch as dividends, principal capital, capital gain, sums pertaining to compensation for confiscation or expropriation of foreign capital;
    b. Other foreign exchange transfers including those resulted from patent, technical know-how as well as engineering and technical assistance agreements, trade marks and name, and similar agreements.
    75.Is there any restriction with regard to the volume of transferable funds?
    No, there is no legal restriction with respect to the volume of transferable funds, neither annually nor totally.
    76.How the foreign exchange required for such transfers is procured?
    Foreign exchange required for transfers related to foreign investments shall be procured and made available by way of purchasing foreign exchange from the banking system or out of foreign exchange earnings resulted from the export of products and/or services of the foreign investment project, as the case may be. However, the mechanism for provision of foreign exchange transfers is specified in the investment license.
    77.Which formalities are required for transfers related to a foreign investment?
    Principally, any and all foreign exchange transfers shall be made upon formal application of the foreign investor or the joint venture company or investee firm on behalf of the foreign investor. All transfers, after deduction of legal dues, are payable to the foreign investor's account.
    78.In case specific regulations or a government decision prohibits the export of products of the investment project, how the foreign exchange related to transfer of capital and profit is procured?
    In exceptional cases where export is not so permitted, the foreign investor is authorized to sell his products in domestic market and to purchase, from the banking system, the required foreign exchange for such transfer(s). Obviously, the foreign investor may export other authorized goods instead, should he wish to do so.

    Chapter 6
    Tax & Customs Issues
    79.What is the rate of income tax for juridical persons in Iran?
    The rate of income tax for juridical persons in Iran is 25% of the taxable income (Article 105, Iranian Tax Code).
    80.Is an equal rate of tax applicable to all types of company including Iranian as well as foreign companies?
    The rate of tax for all types of company, whether Iranian or foreign (branches and representative offices), is 25% that is equally applied (Article 105, Iranian Tax Code).
    81.Are branches and representative offices of foreign companies which are engaged only in marketing and information collection for their parent companies abroad, subject to payment of income tax too?
    No, branches and representative offices of foreign companies and banks which are engaged in gathering information or marketing in Iran for their parent companies, without any transaction right, and receive remuneration from them against their expenditures, shall not be subject to taxation in respect of such remuneration ( Note 2, Article 107, Iranian Tax Code).
    82.How is the income tax of foreign airlines and shipping companies calculated in Iran?
    The tax of foreign airlines and shipping companies for passenger freight cost and the like earned in Iran, is a fixed rate of 5% of such earnings whether collected in Iran, at the destination, or on the way.
    83.Shall the income derived from transfer of technology agreements such as technical know-how, engineering and technical services and also payments of license fee and royalty be subject to taxation?
    In case of granting of licenses and other rights in such agreements, which is considered as the income of foreign juridical persons, taxable income consist of 20% to 40% of all payments received by them during a tax year and shall be taxed at a rate of 25% (Note 2, Article 105; Para“b”, Article 107, Iranian Tax Code).
    84.How the contracting business agreements are taxed?
    In case of contracting businesses of foreign entities in Iran with regard to all types of work in fields of construction, installations, and technical installation including procurement and setting up of the same or transportation, preparation of design for buildings and installation, topography, supervision and technical calculations, provision of training and technical assistance, transfer of technology and other services, the taxable income will be 12% of total annual receipts. (Para“a”, Article 107, Iranian Tax Code). In the event the relevant employer of the contract is a ministry, a government institution, a state company or a municipality, then that part of the contract price which is used for purchase of supplies and equipments from domestic or foreign sources shall be exempt from taxation, provided that the amounts relevant to those supplies and equipments are included, apart from other items, in the contract or in its further amendments or supplements. (Note 2, Article 107, Iranian Tax Code). However, in accordance with Note 5 of Article 107 of Iranian Tax Code, the taxable income of the activities subject matter of Para“a” of Article 107 thereof, the contracts which will be concluded from the beginning of the year 2003 onwards, shall be audited according to the provisions of Article 106, by way examination of statutory books.
    85.How to compute the taxable income in Build, Operate and Transfer (B.O.T) projects, and what is the rate?
    The taxable income of foreign investors in Build, Operate and Transfer (B.O.T) contracts in Iran, shall be calculated at a fixed rate of 25% after deduction of acceptable expenditures, by way of examination of the statutory books (Article 105 and 106, Iranian Tax Code).
    86.What is the manner of computation of salary income tax of foreignemployees?
    The tax rate of salary income of employees whether Iranian or foreigner, after deduction of annual exemptions provided in Article 84of Iranian Tax Code and up to IRR42,000,000 of the annual salary income, shall be subject to a rate of 10%. The rest shall be subject to a rate ranging from 20% to 35%, in accordance with Article 131of the said Code.
    87.What is the rate of tax applicable to transfer of shares of companies listed in the Stock Exchange?
    Each transfer of companies’ shares and priority right of shares, shall be taxed at a flat rate of 0.5% of the sale value of such shares and priority rights of shares (Note 1, Article 143, Iranian Tax Code).
    88.What is the rate of tax applicable to transfer of shares of other companies?
    Each transfer of stocks, partnership shares, priority right of stocks and partnership shares shall be taxed at a flat rate of 4% of face value of the shares and/or partnership shares (Note 2, Article 143, Iranian Tax Code).
    89.What customs duties are there?
    The aggregate of custom tax and duties, order registration fee and other levies on imported goods is called as customs duties which is charged at a rate of 4% of the customs value of the goods. This sum plus the commercial benefit to be determined by the Council of Ministers are referred to as import duties.

    Chapter 7
    Tax and Customs Facilities and Exemptions
    A. Tax facilities / exemptions
    90.What is meant by tax exemption, and how they are realized?
    Tax exemption means exemption from payment of tax on income derived from industrial, mining and producing activities. Companies in Iran are required to withhold the tax on dividend, which is considered as natural entities’ tax, and pay it to the relevant tax office (Article 132, Iranian Tax Code).
    91.What are the tax exemptions, and in what manner they can be applied?
    • Tax exemption in industry, mining and producing sectors:
    1. 80% of the income derived from producing and mining activities of cooperative and private sectors are tax exempted for a term of 4 years as from the date of exploitation or extraction (operation) (Article 132, Iranian Tax Code).
    2. Any part of the declared profit of private and cooperative companies that is used in the same year for development, reconstruction, renovation or completion of existing industrial or mining units and/or for setting up of new industrial or mining units, is exempted from 50% of the applicable tax (Article 138, Iranian Tax Code).
    • Tax exemption in agricultural sector:
    The income derived from all activities in the field of agricultural, animal rearing, stock breeding, fish farming, bee-keeping, poultry, husbandry, hunting and fishing, seri-culture, revival of pastures and forests, horticulture of palm trees, is tax exempted without time limitation (Article 81, Iranian Tax Code).
    • Tax exemption in tourism sector:
    All enterprises for internal and international tourism obtained exploitation permit from the Ministry of Culture and Islamic Guidance shall enjoy an annual exemption with regard to 50% of their applicable taxes (Note 3, Article 132, Iranian Tax Code).
    92. Is there any requirement for enjoying tax exemptions?
    Yes, industrial and mining enterprises shall enjoy tax exemptions if located out of a 120-kilometer radius from the center of Tehran or out of a 50-kilometer radius from the center of Isfahan, and also out of a 30-kilometers radius from the administrative centers of provinces and cities with a population of more than 300,000. Industrial Estates established within the same 30-kilometers radius from the later province centers and cities are exception to this rule (Note 2, Article 132, Iranian Tax Code).
    93.Shall the establishment of manufacturing units in less developed areas result in increase of the rate and period of tax exemption?
    Yes, 100% of taxable income of all units located in less developed areas shall be tax exempted for a period of 10 years.
    94.In respect of tax exemptions, is there any distinction between the units located in Special Economic Zones and those of the mainland?
    No, In respect of tax exemptions, there is no differences between the Special Economic Zones and the mainland. In fact, tax treatment is the same in all parts of the Country.
    95.Shall export income enjoy tax exemption?
    Yes, 100% of the income derived from exportation of agricultural and industrial finished goods as well as their conversional and complementary industries, also 50% of the income earned from exportation of other non-oil goods, are tax exempted (Article 141, Iranian Tax Code).
    96.What is the tax exemption applicable to transit goods?
    100% of the income derived from exportation of different goods that have been, or will be, imported to Iran on transit, and are exported without making any changes in the substance thereof, or doing any works on them, are tax exempted (Article 141, Iranian Tax Code).
    97.Do the companies quoted in the Stock Exchange enjoy tax exemptions other than those applicable to industrial, mining, agricultural and tourism units?
    All the companies listed in the Stock Exchange whose transition of shares is done by stock brokers are tax exempted equivalent to 10% of their payable tax (Article 143, Iranian Tax Code).
    B. Customs facilities and exemptions:
    98.Is customs exemption applicable to the raw materials imported on transit to be exported then in the form of manufactured goods?
    Yes, the raw materials imported on transit for producing purposes are exempted from customs duties. Any sum paid at the time of importation for any reason, shall be refunded once the said goods are exported.
    99.At which price are the imported second hand machinery and equipments evaluated in customs house?
    All the imported goods are evaluated at new price in customs; only the second hand machinery and equipments which are imported to the Country for production line under FIPPA, are to be evaluated at second hand price.
    Chapter 8
    Other Facilities and Exemptions
    100.Which facilities are offered by WORLDBUSINESSYEAR EXPERT  for entry visa of foreign investors and experts?
    WORLDBUSINESSYEAR EXPERT  facilitates visa formalities of foreign investors, including short and long term as well as single and multi entry visas (i.e., 3 year multi entry visa with a 3 months residence permit that is renewable for 1 year), by introducing foreign investors, directors, foreign experts and their immediate family members to the Ministry of Foreign Affairs. Foreign investors or joint venture companies can apply for visa by sending the relevant specification form of applicants along with the reasons for their presence to WORLDBUSINESSYEAR EXPERT . It is worth mentioning that WORLDBUSINESSYEAR EXPERT  is not the only reference for foreign investors to obtain visa, but all foreigners, according to the prevailing regulations, can refer to the Missions of the Islamic republic of Iran abroad, and apply for visa.
    101.Are there any facilities available for the issuance of residence and work permits?
    If necessary, WORLDBUSINESSYEAR EXPERT  will provide certain facilities and assistance to foreign investors in this regard.
    Chapter 9
    102.With which countries has Iran signed the Agreement on the Avoidance of Double Taxation? And are they enforceable at present?
    Before the Revolution, Iran had signed the Agreement on the Avoidance of Double Taxation with two countries, France and Germany, in 1964. After the Revolution, 19 agreements has been signed worldwide.
    103.With which countries has Iran signed the Agreement on Reciprocal Promotion and Protection of Investment?
    The Agreement on Reciprocal Promotion and Protection of Investment has been signed with 40 countries, the final ratification procedure for a number of them is still on the way.
    104.Has Iran concluded any multilateral investment agreement?
    Yes, the Government of the Islamic Republic of Iran has joined the Agreement on Promotion, Guarantee and Protection of Investment among OIC member countries as well as the agreement among ECO member countries.
    105.Has Iran joined the Multilateral Investment Guarantee Agency (MIGA)?
    Yes, the Islamic Republic of Iran is a member of MIGA at present, to this end foreign investors can enjoy the guarantee mechanisms of this agency as well. Although FIPPA along with bilateral and multilateral investment agreements signed by Iran, provides sufficient protections against non-commercial risks, membership to MIGA gives a double guarantee.
    106.Which laws and regulations are necessary for potential foreign investors?
    In addition to FIPPA and its Implementing Regulations which protect rights of foreign investors, WORLDBUSINESSYEAR EXPERT  recommends the investors to acquire knowledge of the following regulations:
    • Commercial Code (sections related to joint stock companies);
    • Export and Import Regulations;
    • Iranian Tax Code;
    • Customs Law;
    • Labour Law (to find out how to employ foreign services);
    • Law for Registration of Patent and Trade Marks (to know about industrial and intellectual property rights).

  • Worldbusinessyear Supports Companies For Funding Strategies


  • Zarif, Mogherini exchange ideas on sidelines of Oslo Forum, JCPOA under scrutiny



    Top foreign policy decision-makers of Iran and EU sat together on the sidelines of the Oslo Forum 2016 to clear away obstacles hindering full implementation of the nuclear deal.

    Participating in the meeting were Iranian Foreign Affairs Minister Mohammad Javad Zarif and European Union Foreign Policy Chief Federica Mogherini with other senior diplomats.
    One key concern of Iran after the implementation of the nuclear deal has been reluctance shown by international banks, including European ones, to normalize ties with Iranian partners, taking fright at possible fines by the U.S.

    “In the first four months this year trade between the European Union and Iran increased by 22 percent,” Mogherini told a news conference on Tuesday, adding, “We are very actively engaging with the business community and the banks in Europe and elsewhere to encourage engaging in Iran.”
    The unsatisfied Tehran has aired grievances, urging the U.S. to take measures to soothe Europeans’ banking fears.

    During his May visit with New Zealand’s Minister of Foreign Affairs Murray McCully in Tehran, Zarif lamented that “We have not fully achieved what we must have, and more measures need to be carried out by the U.S.”
    The banking challenge will be most likely one major theme of the meeting between Zarif and his American counterpart John Kerry slated for Wednesday.
    Under the terms of the Joint Comprehensive Plan of Action, EU terminated limitations on transfers of funds between EU persons and entities, including financial institutions, and Iranian persons and entities, including financial institutions.
    Also, EU agreed to allow banking activities, including the establishment of new correspondent banking relationships and the opening of new branches and subsidiaries of Iranian banks in the territories of EU Member States.
    Iran expects to reap economic gains from the deal with West and strong banking ties with international partners is key to fulfilling the goal.
    Iran and the 5+1 group of countries, including five permanent members of the UN Security Council members plus Germany, forged a deal in July 2015 on Tehran’s nuclear program, resulting in removal of sanctions against Iran in exchange for constraints on the country’s nuclear activities.

  • Zarif, Polish counterpart ink MoU on expanding political consults





     Iranian Foreign Minister Mohammad Javad Zarif and his Polish counterpart Witold Waszczykowski signed a memorandum of understanding (MoU) to boost political consultations between the two countries.

    The MoU was signed shortly after the Zarif’s arrival in Warsaw on Sunday.

    The document will facilitate and regulate cooperation between the two countries in politics and other fields including, economy and culture.

    Speaking to reporters upon his arrival in Warsaw, the Iranian foreign minister said expanding cooperation between the two countries' private sectors is the main goal of his tour.

    “Our most important agenda is supporting the private sector and the private sector is the economic engine of the country,” Zarif said.

     Zarif, heading a politico-economic delegation left Tehran for Europe. Warsaw, capital of Poland, is the first destination of Zarif's four-nation tour to northern Europe.

    A large group of economic and trade activists are accompanying Zarif in his visits to Poland, Finland, Sweden and Latvia.

    Polish Foreign Minister Radoslaw Sikorski visited Iran on February 28, 2016 simultaneously with the 540th anniversary of establishment diplomatic relations between Iran and Poland.

    Political ties between Iran and Poland date back to one thousand years ago and discovered Iranian coins belong to Samanid dynasty (874-1004 A.D.), but, the first written document of official contacts date back to 1474 between King of Iran 'Uzun Hassan Aq-Qoyunlu (1423-1478) and King of Poland 'Yagolini'.

    Poland has membership to the UN, WTO, OSCE, OECD, IMF, IBRD, EIB, EBRD, EFTA, CEFTA and NATO.

  • Zarif: Invest in “Most Stable” West Asian Country

    Describing Iran as the most stable country in West Asia, Foreign Minister Mohammad Javad Zarif invited New Zealand investors to seize the opportunities in the Iranian market.
    Zarif made the statement in an address to a meeting of New Zealand Business Council in Wellington on Monday, which was also attended by ambassadors of the two countriesb_200_200_16777215_00_images_zarif3.jpg.
    Also on Monday, Zarif held talks with a host of other New Zealand officials, including Prime Minister John Key, Trade Minister Todd McClay, Primary Industries Minister Nathan Guy and Labour Party Leader Andrew Little.
    New Zealand’s trade with Iran could surpass pre-sanctions levels and tap into “vast possibilities”, the Auckland-based newspaper New Zealand Herald quoted Zarif as saying ahead of his meeting with John Key.
    “We continue to buy butter and milk products from you, but we are interested in going beyond that and engaging in long-term economic relations with New Zealand,” he told Radio New Zealand on Monday.
    He said new trade possibilities include investment in petrochemical products and high-tech areas such as geothermal, nanotechnology and biotechnology.
    Iran was New Zealand’s fifth largest trading partner in the 1980s before sanctions hit Iran. Along with many western nations, New Zealand lifted sanctions against Iran last month.
    New Zealand exporters describe the removal of sanctions as an opportunity to tap into new markets and renew the country’s relationship with an old trading partner, Radio New Zealand reported.
    In his meeting with McClay, the two sides investigated obstacles to strengthening bilateral ties, particularly in the field of banking services, Mehr News Agency reported.
    Zarif invited McClay to visit Tehran in the near future.
    Earlier on Wednesday, the Iranian foreign minister met with his New Zealand counterpart Murray McCully to discuss trade and economic issues. The two ministers signed off on an arrangement between the Export Credit Office and Export Guarantee Fund of Iran, which McCully said would help give exporters more confidence in the trading arrangements.
    “We are very pleased to welcome Minister Zarif to New Zealand. His visit is the first by an Iranian foreign minister in over 10 years and allows us to refresh the relationship between our two countries following the implementation of the Iran nuclear deal in January,” McCully said.
    Later on Monday, Zarif was due to speak at an event for the Institute of International Affairs before leaving for Australia.
    The Iranian foreign minister arrived in New Zealand early Saturday as the fifth leg of his Asia-Pacific tour, which started the previous Saturday and also took him to Indonesia, Singapore, Brunei and Thailand.

  • حمید تهرانفر معاون سابق نظارتی بانک مرکزی


    حمید تهرانفر

    مدیر عامل بانک کارآفرین

    معاون سابق  نظارتی بانک مرکزی

    به نظر می‏رسد کتاب بر خلاف آنچه در ادبیات بانکی کشورمان دیدم در پی گشودن دروازه‏های جدید است و از تکرار بی‏حاصل مکررات دوری کرده است و برای پیوستن بانک‏ها به جامعه جهانی بانکی صرفاَ داشتن قواعد اینکوترمز کفایت نمی‏کند، بلکه آشنایی با ضوابط بین‏المللی که صحت و سلامت یک بانک را از منظر جامعه جهانی بانکداری تعیین می‏کند، ضرورت دارد.

    به همین دلیل است که نگارندگان محترم  بحث خوبی را در زمینه نظارت نهادهای نظارتی کشور آلمان «بافین» را در بخشی از کتاب مطرح ساخته ‏اند.


  • سیدکمال سیدعلی معاون ارزی سابق بانک مرکزی

    b_200_200_16777215_00_images_IMG16562601.jpgسیدکمال سیدعلی

    مدیرعامل سابق صندوق ضمانت صادرات ایران

    معاون ارزی سابق  بانک مرکزی

    امیدواریم مخاطب بتواند نکات اجرایی را در امور بین‏الملل بانک یاد بگیرد و خودش با استفاده از این کتاب در امور بین‏الملل به لحاظ ساختاری و تشکیلاتی مسلط شود و در محتوی با تکرار و استمرار انجام کار توانایی پیدا کند. متاسفانه با توجه به اینکه به دلیل تحریم‏های ظالمانه اعمال شده نسل جدید ما بانکداری بین‏الملل را نمی‏شناسد و باید آموزش ببیند. سیستم بانکی ما نیازمند این است که نسل جدید بتواند امور اجرایی بانک را با توجه به تجربیات افراد قوی که منتقل کرده‏اند راهبری بانک را به عهده بگیرند.

کتاب عملیات بانکی در عرصه بین الملل -سرفصل ها،ضمائم ،توصیه صاحب‏نظران ارزی و مدیران ارشد بانکی

Investment Consulting &Project Finance


Sign up for our newsletter