Foreign Investment in Iran
The law of encouraging and accepting foreign investment in Iran requires the Iranian government to accept and welcome foreign investors in Iran. Legal persons of Iran and non-Iranians, who, with foreign money, want to invest in Iran, are called foreign investors. The Law on the Promotion and Acceptance of Foreign Investment in Iran has asked foreign investors in Iran, in accordance with the Law on the Protection of Foreign Investments in Iran and its implementing laws, to know their rights and enjoy the facilities and support and legal obligations and requirements due to foreign investment in Iran that may be enjoyed. Questions from users and applicants for foreign investment in Iran have been filed with the Economic and Legal Group of the Lawyers of Mehr and the International Legal and Arbitration Tribunal Taleyat Adalat and Mehr Parsian, which, with the advice of Dr Mohammad Reza Mehri, Lawyer first grade counselor Legal, we will pay them.
By studying this article, written by a Lawyer first grade counselor Legal, a fellow at the Attorneys at Mehr, at the Legal and International Tribunal Taleyat Adalat and Mehr Parsian, detailed information about the process of studying the programs by foreign investors in Iran with the Iranian Investment Organization, the guarantees given to foreign investors in Iran, the rights of foreign investors in Iran, the facilities granted to foreign investors in Iran, The extended protection of foreign investors in Iran as well as the obligations of foreign investors in Iran is presented.
Questions about foreign investment in Iran
- What institution is it licensing for foreign investment in Iran?
- What property is included for foreign investment in Iran?
- What is the general terms for accepting foreign investment in Iran?
- Is it possible to buy property through foreign investment in Iran?
- Can a foreign government operate as a foreign investment company in Iran?
- What is the specialist foreign investment expert in Iran and what are its characteristics?
Investigation process of foreign investment application in Iran
Foreign investors wishing to invest in Iran, within the framework of the Foreign Investment Support Act (FIPPA), must first fill out a particular form. The request for foreign investment, is submitted to the Foreign Investment Council by the Organization for Investment and Economic and Technical Assistance of Iran and will continue until the license is issued.
The choice of the application form for foreign investment in Iran, depends on the type of foreign investment in Iran and the contract between the parties (domestic and foreign investors).
Foreign Investment Conditions in Iran
- Foreign investment in Iran should lead to employment growth, entrepreneurship and industrial growth in Iran.
- Foreign investment in Iran should not be in conflict with the interests and national security of Iran. Non-degradation of the environment, and the non-violation of the rights of domestic investors are also other conditions for accepting foreign investment in Iran.
- Special and exclusive rights are not granted for foreign investment in Iran.
- The foreign investor does not have the right to purchase property and land and, in general, immovable property in Iran.
Types of Foreign Investment admission in Iran
- Acceptance of foreign investment in Iran directly in sectors where private sector activity is permitted.
- Investment in civil partnership and interconnection contracts with the permission of the Foreign Investment Board.
- Capitalization of foreign governments, which is possible only with the approval of the Islamic Consultative Assembly.
Acceptable foreign investment property in Iran
- Cash funds that can be converted into the currency of Iran.
- Cash currency not convertible into rials and used for foreign purchases.
- Non-cash inventory and non-cash assets after valuation.
- Equipment and machinery.
Foreign Investment Licensing Authority in Iran
The Organization for Investment and Economic and Technical Assistance of Iran, is established, with the formation of the Foreign Investment Board in Iran, consists of the Deputy Minister of Economic Affairs and Finance as the Chairman of the Board, the Deputy Minister of Foreign Affairs, the Deputy Governor of the Central Bank of the Islamic Republic of Iran, the Deputy Director of the Management and Planning Organization. After accepting foreign investment by the Board, and approval by the Minister of Economic Affairs and Finance, the foreign investment license in Iran will be issued to the applicant.
Guarantees and protections of foreign investment in Iran
- Foreign investor in Iran is guaranteed against nationalization and abuse, and in such cases foreign investor in Iran is entitled to fines.
- Purchase of goods and services of the foreign investment company in Iran is in cases where a government member in Iran is the only purchaser or supplier of product, or producer services at a subsidized price.
Rights and facilities for foreign investors in Iran
- Foreign investors in Iran under Iranian law enjoy the rights, protections and facilities available, such as non-discriminatory domestic investors.
- Foreign investment in Iran and its profits may be transferred in foreign currency or commodities.
- Accepting foreign investment in Iran is possible in all fields of production, industry, agriculture, transportation, communications and services, as well as in the fields of water, electricity, and gas supply and energy fields.
- It is possible to refer international disputes to foreign officials in Iran.
- Land ownership in the name of the company (registered in Iran) does not exist in foreign joint ventures in Iran.
- Getting visas for three years in Iran for foreign investors, managers, experts and their family members and the possibility of extending the visa.
- Foreign investors in Iran will be informed of the final decision on investment requests in Iran for a maximum of 45 days.
- Having the option to choose the foreign investment method in Iran as a foreign direct investment or foreign investment in all sectors within the framework of civil partnership.
- The foreign investor in Iran should select the audit firm from the audit firms recognized by the Iranian Association of Auditors to evaluate the annual and financial reports of investment in Iran.
Legal obligations and commitments of foreign investors in Iran
- The request for foreign investment in Iran regarding issues related to the acceptance, import, operation and return of capital is sent to the organization.
- The organization must be informed of any change in the name, address, legal form or nationality of the foreign investor Changes over 30% in the ownership of the foreign investor in Iran (Article 33 of the Constitution).
- For foreign investment in Iran, the organization must inform the other investors in Iran about the transfer of all or part of its foreign capital. In case of transfer to another foreign investor, it is necessary to obtain the approval of the council and the permission of the organization in Iran.
- All requests for foreign investment in Iran for the transfer of profits, capital and income from the increase in the value of capital in Iran should be notified to the organization along with the audit report of the Audit Firm recognized by the Association of Auditors.
- The foreign investor in Iran is required to deliver part of the capital to Iran in order to execute the approved project within the time period specified by the Iranian Foreign Investment License, which is usually 6 months. Otherwise, in order to expand the credibility of the foreign investment license in Iran and to prevent it, the foreign investor in Iran will have to provide reasons and justifications for delay to the Iranian organization.
- The foreign investor in Iran is obliged to declare his capital, including cash and non-cash items, to the organization within the framework of the license issued to the foreign investor in Iran, so that they are registered in the organization.
- Acceptance of foreign investment in Iran in existing companies in Iran and companies (buying shares) is possible after the purchase of shares, added value in that economic unit is created.
- Foreign investors in Iran can provide part of their capital from domestic and international sources as loans.
- Foreign investors in Iran, who are investing in Iran by private and corporate companies with the aim of developing, rehabilitating and completing industrial and mining units, will be exempt from tax of 50%.
Foreign Investment Attorney in Iran
International Legal and Arbitration Institute ,Taleyat Adalat and Mehr Parsian, is ready to provide legal advice on foreign investment in Iran, domestic investment, investment in the industrial sector, investment in the construction sector, homeowners and foreign investment applicants. To appoint a counsel, to appoint a counselor in presence, first grade counselor Legal Lawyers, Take action through the announced numbers on the website of the Mehr Attorney Group. Presentation for foreign contracts, arbitration in foreign and international contracts, a lawyer for the Office of Administrative Justice, a family lawyer and a lawyer for business affairs, is our specialty.