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;
  • 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 comparison Khor al-Zubair Free Zone Falafel Free Zone Al-Qayim Free Zone
Average annual Industrial space rent per 1000 sq. m. US$3,000 US$1,500 US$1,000
How long to set the company up? 4 months 4 months 4 months
How long to open company bank account? 6 weeks 6 weeks 6 weeks
Quality of utilities Satisfactory Satisfactory Poor
Allowed to sign sales contracts with local Clients? Yes Yes Yes
Allowed to invoice local Clients? Yes Yes Yes
Corporate tax payable in Iraq 0% 0% 0%
Corporate bank account Standard Chartered T.C. Ziraat Bank Vakif Bank
Physical office space required Yes Yes Yes
Allowed to import raw materials? Yes Yes Yes
Allowed to export goods? Yes Yes Yes
Can be wholly foreign owned Yes Yes Yes
Can the entity hire expatriate staff in Iraq? Yes Yes Yes
Minimum number of directors 1 1 1
Minimum number of shareholders 1 1 1
Individual shareholders allowed Yes Yes Yes
Corporate shareholders allowed Yes Yes Yes
Corporate director(s) allowed No No No
Public register of shareholders and directors Yes Yes Yes
LLC company allowed? Yes Yes Yes
Annual audited financial statements Yes Yes Yes

External articles

Contact us

For additional information on our free zone company services in Iraq, please contact our in-house country expert, Mr. Seth Ochieng, directly:
Director of Client Engagements - Seth
  • Mr. Seth Ochieng
  • Director of Client Engagements
  • Contact me!
Ministry of Trade Ministry of Foreign Affairs Iraq stock exchange central bank of Iraq iraqi trade information center baghdad chamber commerce