The process of receiving insurance permit for the foreign insurance company in IranPublished: 14 December 2016
The process of receiving insurance permit for the foreign insurance company in Iran
In view of provisions of article 45 of the Central Insurance Establishment Act of Iran and Insurance practice, and the regulations of the law in awarding permission for the registry of branches or representative offices/ brokers by foreign insurance companies, passed n November 12, 1997, and the executive by-law of the same law, passed on March 31, 1999, foreign insurance companies that apply for receiving insurance activities permit in Iran, should submit their appl
ication to the Central Insurance Company of the Islamic Republic of Iran. Commencement of foreign insurance company is due to the proposal of the central insurance, approval of high council of insurance, approval of council of ministers and the registry of the branch or reprehensive office/ brokers.
According to the Act pertaining to allowing registration of branch or representatives of foreign companies, passed on November 12, 1997 and the executive by-law of this Act, passed on March 31, 1999, foreign companies which are recognized as legal company provided a counter act in their subject company can register their branches or representatives for insurance activities in Iran.
Based on article 2 of the executive by-law of the Act on Foreign Companies Registry of Branches or Representative Offices, the “branch of the foreign company” will be governed by the place of main company which performs the object and duties of the main company in the place directly. The activity of the branch in the place will be under the name and with the responsibility of the main company. In addition, based on article 4 of the mentioned executive by-law, the “representative of foreign company” is the natural person or the legal entity which has undertaken performing a part of the object and duties of the company, as the party of representative in the place based on the representation contract. The foreign company representative will have the responsibility for the activities which are performed in the place under the representation of the company party to the representation in the place.
The foreign companies that apply for the registration of the branch in Iran are obligated to present following documents and papers to the General Department for the Registration of Corporations and Industrial Ownership alongside with their request in writing:
Article of association of company, notice of establishment and the last changes registered in concerned offices
The last financial report of the company which has been confirmed
The briefing and feasibility report containing the information about the activities of company, defining the reasons and necessity of registering the branch in Iran, determining the type and scope of authorization; and the place of branch activities, estimation of Iranian and foreign human resources which are necessary, and, the method of funding the foreign currency and Rials currency resources to run the branch.
Applicants of foreign company representation registry in Iran should send [legalized] translation of following documents and original documents and information in Persian language to the General Department for the Registration of Corporations and Industrial Ownership with their written request:
- Certified copy of representation contract
- ID. Documents of the applicant
- History of activities of representation registry applicant on the area mentioned in the representation contract.
-Article of association of the foreign company as the party to representation, establishment notice and the most recent changes registered for the company at the relevant legal offices.
-The report on activities of the foreign company as party to the representation and listing the reasons and the necessity of receiving representative offices
- Last financial report of the foreign company as the party to representation with confirmations
- Introduction of the concerned organization (Central Insurance).