Opening a Business in Iran

Iran represents one of the larger economies in the Middle East, with a nominal GDP estimated by the IMF at roughly USD 340-400 billion in 2024-2025. It has the second largest population in the Middle East, a highly educated workforce and attractive tax incentives. Undoubtedly, this country has a great potential. If you are thinking about opening a company in Iran, our law firm in Iran can assist you in all the legal aspects that are involved, including the procedures required for a company registration in Iran.

What are the business entities for setting up a company in Iran?

When opening a business in Iran, foreign investors have different options in terms of the types of business entities that can be registered in this country. These types of companies are:

•    private joint stock company

It is the most commonly chosen business entity by foreign investors when opening a company in Iran. In order to be successfully registered, it is required to have at least three shareholders and a board of directors chosen from among them (in registry practice at least three members), of any nationality. The minimum share capital for a private joint stock company is IRR 1,000,000 (about 1 EUR or less at the open-market rate).

•    limited liability company (LLC)

An LLC in Iran can be opened by two shareholders and one director who can be of any nationality. The Commercial Code sets no minimum share capital, but the cash capital must be fully paid in before registration. This particular business entity is opened especially for trading activities.

•    public joint stock company

This Iranian business entity is recommended for entrepreneurs who want to raise public capital. It requires a board of at least five directors chosen from among the shareholders (hence at least five shareholders), of any nationality for successful registration. The initial capital requested is minimum IRR 5,000,000 (a few euros at the open-market rate). The public company must have at least 20% of its capital subscribed by the founders, the rest being offered to the general public and the public offering must be registered with the Securities and Exchange Organization (listing on the Tehran Stock Exchange or Iran Fara Bourse is not mandatory).

•    branch office

According to the laws in Iran, a branch office can be opened without an Iranian partner. The branch office is registered in Iran as an extension of the main company, having the same directors and shareholders. It is also necessary to appoint a resident legal representative in Iran.

Our team of lawyers in Iran will advise you on the best choice available in order to suit your particular needs.

Laws and regulations when opening a business in Iran

Iran has well-elaborated laws and regulations that are applied to local and foreign companies doing business in Iran, such as the Commercial Code (company law), the Labor Law, social security regulations and so on. We also advise on company liquidation and a wide range of other legal matters in Iran. Our team of attorneys in Iran can assist you with finding out more about these laws and regulations, so that you can have a clear idea on what is required when opening a business in Iran. If you need more details, please contact us.