Iraq Free Zones

Iraq Free Zones

    register a company in free zone area
  • The Iraq Government currently operates 3 free trade zones in the country: i) Khor al- Zubair Free Zone ii) Falafel Free Zone and iii) Al-Qayim Free Zone. A 4th zone is currently being developed near Baghdad in the Fallujah city;
  • Following activities are permitted in these zones: i) Industrial processes ii) storage iii) transportation and trading iv) banking and v) insurance. To perform these activities, our Client must i) submit an application for approval to the Iraqi Free Zone Authority and ii) rent physical space in the zone within 30 days from the approval date;
  • Income from investment in the free zones be exempt from corporate tax, custom duties (for both exports and imports), VAT and capital gains tax. Additionally, there will no foreign exchange restrictions and offshore banking will be permitted in the free zones. However, any goods imported into the free zone for usage inside Iraq will be subject to 5% reconstruction levy;
  • Lastly, income of all foreign employees working in the free zones will be exempt from all taxes while income of all Iraqi employees will be 50% tax exempt.
Free zone comparisonKhor al-Zubair Free ZoneFalafel Free ZoneAl-Qayim Free Zone
Average annual Industrial space rent per 1000 sq. m.US$3,000US$1,500US$1,000
How long to set the company up?4 months4 months4 months
How long to open company bank account?6 weeks6 weeks6 weeks
Quality of utilitiesSatisfactorySatisfactoryPoor
Allowed to sign sales contracts with local Clients?YesYesYes
Allowed to invoice local Clients?YesYesYes
Corporate tax payable in Iraq0%0%0%
Corporate bank accountStandard CharteredT.C. Ziraat BankVakif Bank
Physical office space requiredYesYesYes
Allowed to import raw materials?YesYesYes
Allowed to export goods?YesYesYes
Can be wholly foreign ownedYesYesYes
Can the entity hire expatriate staff in Iraq?YesYesYes
Minimum number of directors111
Minimum number of shareholders111
Individual shareholders allowedYesYesYes
Corporate shareholders allowedYesYesYes
Corporate director(s) allowedNoNoNo
Public register of shareholders and directorsYesYesYes
LLC company allowed?YesYesYes
Annual audited financial statementsYesYesYes

External articles

Contact us

For additional information on our free zone company services in Iraq, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Seth Ochieng, directly:
Ministry of Trade Ministry of Foreign Affairs Iraq stock exchange central bank of Iraq iraqi trade information center baghdad chamber commerce