As a foreign entrepreneur, you can choose to open a company in Iran and you should know that there are different alternatives, depending on the intended activities. Mostly, the legal rights of the foreign companies which are active in Iran are protected by the government in the same way the Iranian establishments are. The laws are well structured and the regulations are applicable for both foreign and domestic associations working in Iran.
Among the types of companies, three are more important and more common within Iran:
• private joint stock company,
• public joint stock company,
• limited liability company.
The limited liability company can be started with one director and two shareholders, all of them of any nationality. This type of company can be managed by more than one director, hired or not, either chosen from the partners or even from outside and it can be set up for a limited or unlimited time as well.
The partners are liable for the company’s debts, of course only to the extent of their own contribution. In case of non-cash contributions, they must be assessed and delivered. If there are more than twelve partners, there must be a board of supervisors which will have to control them. In case there is a transfer of partnership shares, it could be difficult to complete because, in order to authorize such a deal, three quarters majority is needed and the transfer has to be notarized at the Public Notary.
The name of the company is always an important step in the company formation process. When you make the final choice, make sure to introduce “limited liability” in the name as well. If the name of the brand does not include these words, it will be taken into consideration only as a general partnership.
So, as a conclusion, incorporating a company in Iran is quite simple. When it comes to dealing with regulations and providing the proper paper work, we are always here to help, so do not hesitate to contact us, at any given time.