How to Set Up a Company in Iran

Incorporation process in Iran

The incorporation process involves deciding the company’s objects of association, alongside with submitting the required documents; the company will be registered as a joint stock company, a limited liability company or other type available in Iran.

Finline Group incorporation specialists can offer you information related to registering a company in Iran, such as the minimum number of associates, managers or secretary and other requirements.

When registering a company in Iran, our company incorporation specialists will request a specific company name by completing a form and paying a tax. The application will be sent to the Companies Registration Office in Iran and here are the documents needed:

•    minutes of the shareholder’s meeting, reflecting the election of the directors;

•    ID Card and copies of birth certificates of the shareholders;

•    articles of association, signed by all shareholders;

•    minutes of the general meeting of founders and board of executives;

•    declaration affirming that all shares have been subscribed etc.

After all forms are accepted, the newly made business will obtain a registration certificate. Our company formation specialists in Iran can assist you by also providing other types of services, like:

•    registration for value added tax;

•    opening a bank account, necessary for your company in Iran;

•    consultation on the tax minimization or exceptions your business may be allowed to;

•    accounting services;

•    virtual office.

Establish a Limited Liability Company in Iran

As a foreign entrepreneur, you can choose to open a company in Iran and you should know that there are different alternatives, depending on the intended activities. Mostly, the legal rights of the foreign companies which are active in Iran are protected by the government in the same way the Iranian establishments are. The laws are well structured and the regulations are applicable for both foreign and domestic associations working in Iran.

Among the types of companies, three are more important and more common within Iran:

•    private joint stock company,

•    public joint stock company,

•    limited liability company.

The limited liability company can be started with one director and two shareholders, all of them of any nationality. This type of company can be managed by more than one director, hired or not, either chosen from the partners or even from outside and it can be set up for a limited or unlimited time as well.

The partners are liable for the company’s debts, of course only to the extent of their own contribution. In case of non-cash contributions, they must be assessed and delivered. If there are more than twelve partners, there must be a board of supervisors which will have to control them. In case there is a transfer of partnership shares, it could be difficult to complete because, in order to authorize such a deal, three quarters majority is needed and the transfer has to be notarized at the Public Notary.

The name of the company is always an important step in the company formation process. When you make the final choice, make sure to introduce “limited liability” in the name as well. If the name of the brand does not include these words, it will be taken into consideration only as a general partnership.

So, as a conclusion, incorporating a company in Iran is quite simple. When it comes to dealing with regulations and providing the proper paper work, we are always here to help, so do not hesitate to contact us, at any given time.

PRIVATE JOINT STOCK COMPANY

Registration of offshore company in Iran in the form of Sherkat-e-Sahami Khass takes little time and has certain advantages over other organizational and legal forms of business and in view of that non-residents usually apply it.

The procedure consists of the stages listed below:

1. Presence of company in Iran implies the contribution of charter capital, and its amount is determined by the type of activities of the company. During the first day it is sufficient to transfer 35% of the total amount to the account of the selected local bank. After the transaction it is necessary to request the transfer confirmation.
2. Registration of business in Iran with the Register of Companies. For this purpose the authorized persons shall be provided with all the constituent documents including charter, extracts from the minutes of meetings, personal data of beneficial owners and other. Complete list of documentation can be specified by our specialists, and for its collection it is sufficient to sign power of attorney by the employees of Law & Trust. Company formation in Iran is associated with the procedure of coding of all documents: barcode allows to track all the movements of the founder within the country if necessary.
3. Consideration of the application and registration of the company in Iran take about 3 days. When transmitting package to the Commercial Registry payment of the state duty and registering business are required. Specialists carry out the selection of names for the new business in Iran for an extra charge.
4. Then, publication of the notice of appearance of the new offshore company in Iran in the official periodical bulletin of the state is made. Additionally, submission of the same data in one of the local newspapers with large circulation is required. Business in Iran can start activities without waiting for the publication.
5. After that, books of account with state seals are purchased and payment of stamp duty at the rate of 0.2% of the share capital is made. The last thing necessary to be done by the founder is to register all the employees according to social insurance program and submit data on the wages of the employees to the Labor Department.