Fast company solutions for Iraq

Standard time-frame for Iraq business setup

• Setting up a new company in Iraq with foreign directors/shareholders is a time-consuming process and usually takes 5 months;
• The process includes: i) multiple Government agencies approval ii) enhanced security checks for foreigners and iii) completion of slightly different procedures in different parts of the country (for instance, Baghdad and Mossoul);
• As a work around solution, Healy Consultants supplies fast solutions: a Nominee Iraq limited liability company for Clients who need to start business quickly.

Fast business setup time-frame

• With a nominee Iraq LLC, our Clients can i) invoice their customers within 1 month and ii) request them to settle invoices within the subsequent month instead of the usual 5 months;
• If our Clients wish to avail such a solution, we will i) register a new company using our professional local passive nominee directors & shareholders ii) register for tax and iii) open a corporate bank account within 8 weeks;
• Meanwhile, Healy Consultants’ Iraq lawyers and accountants will modify the corporate structure to appoint our Clients as the company’s directors and shareholders.

Please find below a comparison of costs and timelines for a nominee company setup and new company setup:

Advantages and disadvantages of a fast company solution

Advantages

1. A nominee company is a time-effective solution. Our Clients will be able to i) sign deals and contracts; and ii) invoice customers earlier when compared to a new company setup;
2. Our Client will not be required to travel to Iraq to complete the company registration and bank account opening procedure.

Disadvantages

1. Engineering a nominee company solution is more expensive than a new company setup solution;
2. While the Client will be able to commence operations within 1 month, he/she will still be required to amend the i) corporate structure and ii) M&AA and iii) company name (if required).

Corporate bank account considerations

1. Initially, the corporate bank account signatory will be Healy Consultants’ nominee officer. Prior to changing the signatory, we will request our Client to submit 100% of the due diligence documents. Only after we receive all the due diligence, will we be able to change the bank account signatory;
2. Healy Consultants will email the following details to the bank officer: i) company’s proposed business activity ii) directors & shareholders iii) ultimate beneficial owners (UBOs) and iv) expected transaction volume;
3. We expect there is a 20% probability the bank officer will request the new bank account signatory to travel to Iraq for a bank interview. That said, we will negotiate extensively for a travel exemption;
4. Realistically, we expect our Client will be able log into the e-banking facility within 15 weeks from the date Healy Consultants provides the bank account numbers.

Iraq Nominee LLC setup timeline