News: Registration of Company in Iran

Company formation in Iran

Registration of company in Iran requires constant legal support. This service is offered by the lawyers of the company Law & Trust International. Most of the non-resident businesses in the country is subject to tax on an equal basis with citizens of the state, but there are free economic zones, where it is possible to register offshore company in Iran.

Details of the establishment process can be specified to the client on free consultation from the Law & Trust expert. Among the advantages that distinguish us from our competitors there are the following:

• detailed knowledge of the country's legislation, which allows not to waste extra time on its consideration when registering businesses;
• presence of in-house interpreters, notaries and professionals from related fields for integrated provision of services that gives our clients the opportunity to make the order and just wait for a decision;
• tight schedule of work and low prices are due to a large number of applications; quality of work is guaranteed and confirmed by the clients’ feedback and recommendations.

Business in Iran: Private Joint Stock Company

Registration of offshore company in Iran in the form of Sherkat-e-Sahami Khass takes little time and has certain advantages over other organizational and legal forms of business and in view of that non-residents usually apply it.

The procedure consists of the stages listed below:

1. Presence of company in Iran implies the contribution of charter capital, and its amount is determined by the type of activities of the company. During the first day it is sufficient to transfer 35% of the total amount to the account of the selected local bank. After the transaction it is necessary to request the transfer confirmation.
2. Registration of business in Iran with the Register of Companies. For this purpose the authorized persons shall be provided with all the constituent documents including charter, extracts from the minutes of meetings, personal data of beneficial owners and other. Complete list of documentation can be specified by our specialists, and for its collection it is sufficient to sign power of attorney by the employees of Law & Trust. Company formation in Iran is associated with the procedure of coding of all documents: barcode allows to track all the movements of the founder within the country if necessary.
3. Consideration of the application and registration of the company in Iran take about 3 days. When transmitting package to the Commercial Registry payment of the state duty and registering business are required. Specialists carry out the selection of names for the new business in Iran for an extra charge.
4. Then, publication of the notice of appearance of the new offshore company in Iran in the official periodical bulletin of the state is made. Additionally, submission of the same data in one of the local newspapers with large circulation is required. Business in Iran can start activities without waiting for the publication.
5. After that, books of account with state seals are purchased and payment of stamp duty at the rate of 0.2% of the share capital is made. The last thing necessary to be done by the founder is to register all the employees according to social insurance program and submit data on the wages of the employees to the Labor Department.

Taxation for Iranian businessmen

In order to register company in Iran legally it is necessary to register it with tax authorities. After registering the Labor Department requires payment of 33% of social tax, 23% of which should be covered by the employer. Total income tax rate varies from 15 to 57%, and level of the company income affects the size of coefficient.

Taxation is applicable to citizens of the country and businessmen from abroad, but it is possible to completely avoid the payment of tax or reduce the size of contribution by registering physical address of the company within the territory of one of 8 free economic zones of the state.

Offshore zones (free economic zones) in Iran offer the exemption from taxation for a period of 15 years from the date of registration of the company in Iran; there are 4 of them, and the others provide significant benefits for VAT. Details on the establishment of business in offshore areas of the country can be clarified during personal conversation with our lawyer.