World Business and Economic Analysis
World Business and Economic Analysis
As you may know ,Foreign nationals are prohibited from working in Iran unless they receive work and employment permits (even if they are supposed to receive wage and salary outside the Iranian territory). The work permit serves as the employment license for the foreign nationals in Iran.
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The work permit for the employment of foreign nationals in Iran is issued by the “Department General for Employment of Foreign Nationals” (also called Department for Employment of Expatriates) of the Ministry of Cooperatives, Labor and Social Welfare upon a request by Iranian employers. In provincial capitals it is issued by the Foreign Citizens Divisions of the Department General of Cooperatives, Labor and Social Welfare. (The general procedure for admission of foreign investment has been brought separately in the following part.) The Iranian employers are obligated to seek the permission of the Department General for Employment of Foreign Nationals before concluding any contract that may lead to the employment of foreign citizens in Iran. The rules and regulations for acquiring work permit for the foreign nationals are available in the Labor Law of the Islamic Republic of Iran, ratified in 1990 (articles 120 through 129 and executive bylaw of Article 129). Although due to abundance of educated job-seekers in the country and for the purpose of reducing unemployment rate of the educated and skilled job-seekers the Technical Board for Employment of Foreign Nationals has strict rules and regulations (stipulated in Article 121 of Labor Law) for issuance of work permits, the Foreign Investment Promotion and Protection Act (FIPPA), passed in 2002, has considered promising provisions for issuance of work permits for foreign investors, managers and experts in relation with the investments under FIPPA.
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Iran offers numerous incentives for foreign investors in Trade-Industrial Free Zones.
1-Tax exemption for 20 years from the date of operation for all economic activities
2-Foreign investment and nearly a hundred percent of the amount invested.
3- Freedom of entry and exit of capital and profits
4- Protection and guarantees for foreign investments.
5- Abolition of entry visas and easily issue of residence permits for foreigners.
6-Facilitated regulation on labor relations, employment and social security.
7- Transfer of part manufactured goods to the mainland without paying customs duties.
8- Elimination of pay customs duties on imports from outside to the region and vice versa.
9- Employing trained and skilled manpower in all different skill levels and professions.
10- Utilization of raw materials, oil and gas as feedstock and fuel for all industrial activities.
The list of the Trade-Industrial Free Zones of the Islamic Republic of Iran are as follows:
1-Qeshm Trade-Industrial Free Zone
2-Chabahar Trade-Industrial Free Zone
3-Aras Trade-Industrial Free Zone
4-Anzali Trade-Industrial Free Zone
5-Arvand Trade-Industrial Free Zone
6-Kish Trade-Industrial Free Zone
7-Maku Trade-Industrial Free Zone
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Danish Ambassador to Iran Danny Annan Denmark said his country is set to invest in the north-western province of Zanjan.
Addressing a gathering of economic activists in Zanjan on Wednesday, Ambassador Annan voiced his country’s readiness to make various investments in the province, adding that excellent investment opportunities exist in Zanjan which need to be properly exploited in line with expansion of bilateral ties.
He pointed to the rich mineral resources of Zanjan, confirming that the mining sector remains as the most important area for Denmark to make investments while Zanjan offers good opportunities in the agricultural sector too.
“Danish investors hold contracts with largest Iranian dairy companies,” underlined the official emphasizing the need to facilitate the entry of foreign investors to the market.
Denmark has also announced willingness to build a wind-turbine production plant in Iran and expand bilateral cooperation in development of domestic renewable energy sector.
The long-term objective pursued by the Danish plant construction proposal is to turn Iran into a production hub, from which products can be exported to other regional countries, said Energy Minister Hamid Chitchian following his meeting with Danish Minister of Foreign Affairs Kristian Jensen last Monday.
He added that the main aim of the meeting was to represent the investment opportunities of the Iranian water and energy sectors to Danish financiers.
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