Iraq client case studies
Chinese electrics and electronics solutions provider sets up Iraq branch office
- Our Client is developer and provider of electric systems, transformers and photovoltaic power stations. The Client wished to set up an Iraqi entity to pursue a contract in the Nissan Province of New Baghdad.
- To qualify for the tender bidding process and submit their proposal, the Firm required a commercial registration number.
- Only if the Firm was awarded the tender would a local bank account be opened and senior staff from China would relocate to Iraq.
- Taking into account the tight deadline the Client had to submit their bid, our CEO Americas & Africa Kunal Fabiani presented the Iraq branch office proposal to our Client highlighing the expected nine-week timeframe to complete branch office setup and outlining the legal requirements to i) lease local office premises ii) appoint a resident director and iii) appoint a chartered accountant and local attorney after the entity is registered.
- Our Client then i) agreed the corporate structure, including the use of nominee resident director services, and settled the first instalment of our fees and ii) emailed the KYC documents of the parent company and ultimate beneficial owner.
- Healy Consultants Group PLC prepared a detailed engagement project plan mapping out a step-by-step plan to engagement completion.
Document legalisation delay
- After receipt of the first instalment fees, Kunal emailed our Client i) a set of draft branch registration documents and Power of Attorneys in English for our Client’s review and ii) a detailed checklist of documents to be notarised, translated to Arabic and legalised by the Iraqi Embassy in China.
- Following feedback from our Client regarding the draft documents, Kunal emailed our Client final copies in Arabic for signature and attestation.
- The documents were promptly signed, notarised and translated within two weeks. However, the Client encountered a delay of almost four weeks with the Iraq Embassy in China, which put in jeopardy the timely setup of their Iraqi branch office and their ability to meet the deadline to submit the proposal for the tender.
- Upon receiving the original legalised set of documents at our Basra affiliate office, our legal team completed further attestations with the Iraq Ministry of Foreign Affairs within one week, and submitted the final document set to the Basra Registrar of Companies for review and processing.
- Over the subsequent weeks, Kunal and the Basra legal team constantly monitored and followed up with the representatives of the Registrar of Companies. Our lead attorney also scheduled a meeting with the registrar to fast track branch registration.
- Despite assurances given by the Registrar Director, the application for multiple company and branch registration applications remained pending for five weeks. Consequently, our legal team formally filed a complaint with the Ministry of Commerce, resulting in the replacement of the Registrar Director. Fortunately, within one week of the new Registrar Director assuming his position, our Client’s application was finalised, and the Certificate of Registration was issued.
- Our Client was grateful for the deliverable to be supplied before the deadline, and offered Healy Consultants Group an additional bonus payable with the second instalment.
- To complete the engagement, Healy Consultants submitted the branch tax registration application and received a tax number within three weeks. Kunal emailed our Client the tax registration certificate and a sample proforma invoice so our Client can invoice local customers when they are ready to commence operations.
- While our Client’s company remains dormant, there are no monthly quarterly filings to complete.