Islamic Republic of Iran company registration

Islamic Republic of Iran company registration

DOING BUSINESS IN IRAN

For over a decade, Healy Consultants has assisted our Clients with business registration in Iran. Our services include i) company setup ii) license registration iii) business bank account opening iv) employee recruitment assistance v) visa strategies and vi) office rental solutions.

SummaryLLCFast business setup solutionFree zone LLCPrivate JSCPublic JSCRepresentative officeBranch office
Also known asSherkat ba Masouliyat Mahdoudlegally conduct business nowN/ASherkat Sahami KhassSherkat Sahami AmN/AN/A
Best use of company?All products and servicesClose a customer deal nowManufacturing, import and exportLarge projectsTo secure public fundingMarketing & researchSpecific projects
How soon can you invoice Clients/sign sales contracts?5 months2 months4 months5 months7 months5 months5 months
How soon can you hire staff?4 months2 months3 months4 months6 months4 months4 months
How soon can you sign a lease agreement?3 months2 months2 months3 months4 months3 months3 months
How long to supply corporate bank account numbers?5 months2 months4 months4 months7 months5 months5 months
Entity can be wholly foreign owned?YesYesYesYesYesYesYes
Corporate tax rate on annual net profits?25%25%0%25%25%0%25%
Limited liability entity?YesYesYesYesYesNoNo
Government grants available?YesYesYesYesYesNoNo
Resident director/partner/manager/ legal representative required?NoNoNoNoNoYesYes
€ minimum paid up share capital?€40€40€120€40€200nonenone
Can bid for Government contracts?YesYesYesYesYes0%Yes
Corporate bank account location?Bank MelliBank MellatAl Rajhi BankBSI BankMaskan BankBank MelliBank Mellat
Can secure trade finance?YesYesYesYesYesNoYes
VAT payable on sales to local customers?9%9%9%9%9%None9%
Average total business set up engagement costs?24,06031,04016,44026,02021,74014,87014,870
Average total engagement period?6 months4 months5 months6 months8 months6 months6 months

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Accounting and tax considerationsLLCFast business setup solutionFree zone LLCPrivate JSCPublic JSCRepresentative officeBranch office
Statutory corporate tax payable?25%25%0%25%25%0%25%
Legally tax exempt if properly structured?NoNoYesNoNoYesNo
Group HQ tax incentives?YesYesYesYesYesNoYes
Must file an annual tax return?YesYesYesYesYesYesYes
Must file annual financial statements?YesYesYesYesYesNoYes
Must appoint an auditor/company inspector?YesYesYesYesYesNoNo
Access to double taxation treaties?YesYesYesYesYesNoYes
How long to supply company registration / tax numbers?5 months2 months4 months4 months7 months5 months5 months
Company RegistrationLLCFast business setup solutionFree zone LLCPrivate JSCPublic JSCRepresentative officeBranch office
Resident director/partner/manager/ legal representative required?NoNoNoNoNoYesYes
Minimum number of shareholders/partners?22235Parent companyParent company
Shelf companies available?YesYesYesYesNoNoNo
Time to incorporate a new entity?3 months2 months3 months4 months6 months4 months4 months
Can easily convert to a PLC?YesYesYesYesYesNoNo
Public register of shareholders and directors?YesYesYesYesYesNoNo
Can have preference shareholders?YesYesYesYesYesNoNo
Business ConsiderationsLLCFast business setup solutionFree zone LLCPrivate JSCPublic JSCRepresentative officeBranch office
Good entity for trademark registration?YesYesYesYesYesNoYes
Can secure an import and export license?YesYesYesYesYesNoYes

Sponsorship by a local citizen required?No
Our Client needs to travel to Iran for business set up?No
Temporary physical office solutions available?Yes
You need a local resident as bank signatory?Yes
Can be wholly foreign owned?Depending on the business activity
The entity will likely be regulated by?Companies Registration General Office (CRO)
Quarterly VAT reporting to the Government?Yes
Must sign an office lease agreement during incorporation?No
Shareholders & directors documents to be attested/translated?Yes
Each foreign director needs a personal income tax number?Yes
Foreign director needs a residence visa?Yes, to be appointed as bank signatory
Maximum number of staff allowed?No maximum number for any entity
Expatriate to local staff ratio?3:1
Can secure residence visa for business owner?Yes
Other useful information
What will be included in my customer sales invoice?Click link
This country has signed free trade agreements?Yes
This country is a member of WIPO/TRIPS?Yes/No
This country is a member of the ICSID?No
Average custom duties suffered?Rate
Government foreign investment approval required?Yes
Average monthly office rental? (US$ per sq m)25
Minimum statutory monthly salary?US$280
Average monthly US$ salary for local skilled employees?US$1,160
US$ deposit interest rate? (1 year average)16.9%
Overseas remittance currency controls?Yes
Banking considerations
Multi-currency bank accounts available?No
Corporate visa debit cards available?Yes
Quality of e-banking platform?Satisfactory
Crowd funding available in this country?Yes
Government approval required for foreign owners?Yes
Withholding tax on payments to foreign shareholders?0%


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Contact us

For additional information on our company registration services in Iran, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Olivia Stanciu, directly:
client relationship officer - Olivia