Free Zone

The philosophy of establishment of Free Zones in Iran and Iranian Special Economic Zones is as it has been mentioned in respective laws, is to provide prosperity, economical development and growth, promotion of investment, active presence in local and international markets,

production of indusial goods and services increase in national income and increase in employment. Such zones have facilitated the trade and industrial activities and they have promoted investment benefiting from great reduction in formalities like customs, banking and financial systems, insurance and labor laws, foreigner entrance etc. Especially Free Zones, in comparison to Special Economic Zones, have significant, advantages, most important of which is having independent organization rules and regulations for administration of the zones named: High Council of Free Trade-industrial zones. Since the investment promotion has been the main target of the zones, consequently all the existing systems, format and informal, have the intention to serve and indus trial activities.


The act governing the registration of companies in tree zones is "Criteria on Registration of Companies, and industrial and intellectual Property Rights" Registration of a company or institute in free zones will be made upon submission of the following document:

1-Letter of declaration applying for registration.
2-Company a articles of association.
3-Minutes of the founders' general assembly.
4-Minutes of the first session of the board of directors.
5-Certificate issued from one of the banks located in the Zone, attesting that a minimum of 35% of cash capital has been paid
6-License of the activity issued by the Organization.

In case of foreign legal persons, it is necessary to provide and submit the original letter of authorization indicating representation as well as the license of the establishment of those legal persons Issuance of such documents must be in accordance with those laws regulations of the legal persons sovereign state (and attested by representative of Islamic Republic of Iran in that country)
In order to register a branch or a representation office, the foreign legal persons, are to attach the Persian translation of the company's registry declaration forms, and attested copy of the documents indicating the registration of company in their own sovereign country.

For more information Please contact: Dr. Hamid Bagherzadeh
[email protected]

FAQ

Based on Iranian laws, what does Iranian firm and foreign firm means?

An Iranian firm is a company which is established according to the Trades Law; and also a company which is established and registered abroad; established and registered in Iran as well; even if one hundred percent of the stocks or shares equity of those companies belong to foreign natural persons or legal entities.

Is it possible to establish a legal base in Iran in form of a branch and representative/agent of a foreign firm?

Yes, any foreign company is allowed to establish a legal base in Iran through registering a branch and/or representative of the holding company in order to develop its trading and business affairs and to fulfil its contract duties, marketing activities; etc. There are particular regulations for establishing a branch or representative office and the applicants shall directly check with the General Department for the Registration of Corporations and Industrial Ownership.

Is the branch and representative/agency establishment regarded as a foreign investment?

Establishing branch and/or representative office is not considered as foreign investment. The foreign investor; however, can establish a new Iranian company, participate in an existing Iranian company and/or reach contract agreements with an Iranian investee firm.

What “Iranian Firm” means?

By term “Iranian Firm” it means, regardless of shareholders or stockholders nationalities, the company should have been established and registered according to the Trade Law of Iran.

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Dr. Hamid Bagherzadeh

Office Tel: +98 9121023022
Email:
[email protected]

Position
Senior Partner
Education
Shahid Beheshti University, Faculty of Law
LLM, Private Law
Tehran University, Faculty of Law
P.H.D
Professional Associations and Memberships
Member of Iranian Bar Association
Visiting Professor at University of Tehran
Languages
Farsi, English


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Mr. Yaser Sahraei

Office Tel: +98 9121023022
Email: [email protected]

Position
Associate
Bar Admissions
Tehran-Iran
Education
Tehran University, Faculty of Law 
L.L.B
Tehran University, Faculty of Law 
L.L.M
Professional Associations and Memberships
Member of Iranian Bar Association
Languages
Farsi, English

          Tel: +989121023022