Investment Licensing Procedure
In the Islamic Republic of Iran
Documents Required by the OIETAl for the Isuance Of Foreign Investment Licensing Procedure
- Application Form
2. Establishment License / Primary agreement / Preliminary agreement of the pertinent Iranian organization
3. Official letter of the foreign investor to submit to the OIETAl
4. The foreign investors background including a brief history of the company ,the year of establishment area of activities in case of foreign investor is a natural person , a photocopy of passport and resume will be provided.
5. A list of machinery, equipments and CKD part which may be imported into the country as a part of the foreign investors capital (if available).
6. In case that part of the foreign investor’s share is in the form of technical know ??“how, a draft of the contract outlining the conditions of the transfer of technology.
7. Any further useful information.
Foreign Investment Service Center
The Center for Foreign Investment Services (the Center)was established at the premises of the Organization for Investment, Economic and Technical Assistance of Iran, pursuant to Article 7 of “ the Foreign Investment Promotion and Protection Act” of 2002. The Center is intended to provide an efficient organization for streamlining and expediting the affairs related to foreign investment undertakings in Iran.
For this purpose, fully authorized liaison representatives from relevant executive agencies including the Ministry of Foreign Affairs, the Ministry of Commerce, the Ministry of Labor and Social Affairs, the State Organization for Tax Affairs, the Customs of the Islamic Republic of Iran, the Central Bank, the General Directorate for Registration of Companies and Intellectual Property, and the Organization for Protection of the Environment have been stationed at the Center.
These representatives will assist foreign investors by ensuring efficient execution of the processing and services entrusted to their relevant agencies in connection with foreign investment projects.
Key services offered by the Center include:
• Dissemination of information and provision of necessary guidance to foreign investors concerning investment in Iran.
• Necessary coordination concerning the issues related to foreign investment including issuance of the declaration of establishment , the environment protection license, the permits for subscriptions relation to water, electricity, fuel and telephone, the license foe exploration and exploitation of mines, etc. from the relevant authorities, prior to the issuance of the investment license.
• Necessary coordination for the securing of entry visa, residence and employment permits for foreign nationals involved in foreign investment projects.
• Necessary coordination concerning issues related to foreign investments subsequent to the issuance of the investment license including registration of joint venture company, registration of order for importation of machinery and equipment, and issues related to importation and repatriation of capital, customs and tax affairs ,etc..
• Coordination among various official agencies in connection with requests and applications made by projects involving foreign investment.
• General supervision concerning the fulfillment of decisions surrounding foreign investment projects.
Conduct of affairs related to foreign investment by the Center has been organized in a manner that foreign investors can easily lay hand on all required information and services without any need for further referral to a host of different executive bodies. In fact, services rendered by the Center are not limited to prior-investment stages; foreign investors may, at any time and any stage ever after, refer to the Center and benefit from its services.
The performance of the Center since its establishment proves that the establishment of the Center is an effective step toward expediting the affairs of foreign investment undertakings. It is expected that further development of relations between the Center and foreign investors will increasingly enhance the efficiency of the Center in carrying out its assigned duties and responsibilities.
The Centers with the same tasks mentioned above established in the center of all provinces.
The names of some of them are:
Employment of Foreign Nationals in Iran
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.
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.
Investment Incentives and Advantages in Free and Special Economic Zones
Incentives and advantages for investment 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
For more information the visitors may go to the website: http://www.freezones.ir
Incentives for investment in Special Economic Zones
• Import of goods from the above mentioned zones for domestic consumption would be subordinate to export and import regulations, and export of goods from these areas will be carried out without any formalities.
• Import of goods from abroad or free trade zones or industrial area-would be carried out with minimal customs formalities and good internal transit cases would be performed in accordance with the relevant regulations.
• Log entry of merchandise subject to this article will be done without any customs formalities.
• Goods imported from outside or industrial areas or other commercial zones can be exported without any formalities of the country.
• Management of the region is allowed to assign the region to qualified natural or legal persons after classification and valuation.
• Owners of goods imported to the region can send all or part of their goods for temporary entry in to the country after doing customs clearance regulations.
• If the processing of imported goods is to some extent that 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.
• Importers of goods are allowed to hand over to others part or all of their products against warehouse receipt to be issued by the district administration, in this case the breakdown warehouse receipt holder would be the owner of the goods.
• The management of each district is authorized to issue certificated of origin for goods per applicant out of the area with the approval of the customs.
• All the goods imported to the region for the required production or services are exempted from the general import-export laws. Imports of goods to other parts of the country will be subordinated to export and import regulations.
• Percentage of goods produced in the zone, based on paragraph (d) of clause (25) of the law of the second economic, social and cultural development plan of the Islamic republic of Iran imported to the country, the proportion of total value added and domestic parts and materials used in the total price of the commodity production is allowed without any limitation and in addition to not having to order and open letter of credit.
• 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
The list of the special economic zones of the Islamic Republic of Iran are as follows:
1-Salafchegan special economic zone
2-Shiraz special economic zone
3-Assaluye special economic zone
4-Arge Jadid special economic zone
5-Payam Airport special economic zone
6-Persian Gulf special economic zone
7-Lorestan special economic zone
8-Amirabad port special economic zone
9-Bushehr Port special economic zone
10-Shahid Rajaee Port special economic zone
11-Sarakhs special economic zone
12-Sirjan special economic zone
13-Yazd special economic zone
14-Bushehr special economic zone
For more information in this respect the visitors may go to the website: www.freezones.ir
For further information with respect to investment procedures in Iran, please kindly visit the homepage as follows: