The law for Company Registration in Iran was approved in 1931 and according to the executive code of this law, the Department ” Company Registration, Trade Marks & Patents ” was created under the administration of the “State General Register”.
The “General Office for Registration of Companies and Industrial Properties” is in charge with providing identity to economical establishments and creating economical security in line with the Company Law.
The joint stock company is described by the law as a business whose capital is divided into shares and the liability of the stockholders is restricted to the similarity value of their stocks.
In Iran, the joint stock company may be either a public one (Sherkat Sahami Am) or a private company (Sherkat Sahami Khass). The important difference between the two is that the public company offers its shares and debt securities to the public, while the private company cannot.
Our company incorporation specialists in Iran can help you register your company in the country and can legally assist you every step of the process.
Types of companies in Iran
In addition to the joint stock company, the Iranian Commercial Code provides for the following categories of commercial association:
• limited liability company (Sherkat ba Masouliyat Mahdoud);
• limited partnership (Sherkat Mokhtalet Gheyr Sahami);
• proportional liability partnership (Sherkat Nesbi);
• general partnership (Sherkat Tazamoni);
• production and consumption cooperative (Sherkat Ta’avoni Towlid va Masraf);
• mixed joint stock partnership (Sherkat Mokhtalet Sahami).
The limited liability company and the joint stock business provide for a restriction of shareholders’ liability to the worth of their dividends.
Regarding the mixed joint stock partnership, the law provides for unlimited liability for both stockholders and associates.
For every type of business you want to register, our company formation agents in Iran will offer proper guidance and information.
Incorporation procedure in Iran
The constitutional document of a joint stock company is named the “Articles of Association” which is unevenly comparable to a combination of the agreement and by-laws of a corporation designed in other states.
The subscribing stockholders or initiators must agree upon the “Articles of Association” and attach their signatures before the company formation may be registered.
The share capital must be deposited in to a bank account opened in the name of the company before the enterprise is incorporated.
The receipt from the bank is essential as one of the documents to be filed with the “Companies Registration Office” in Iran when the company is registered.
A meeting of the subscribing founders or shareholders is demanded by law for the public company and here are the main issues they need to take care of:
• designate directors and inspectors;
• agree and sign the “Articles of Association”
• elect a general circulation newspaper for publication of the company’s legal notifications;
• confirm the mandatory subscriptions and payments.
In founding a private company, the following documents are compulsory to be filed with the “Companies Registration Office” in Iran:
• declaration that the shares have been subscribed together with a bank certification that the obligatory amounts have been paid in;
• signed receipts of the directors and supervisors;
• draft “Articles of Association” signed by all stockholders;
• a document signed by all shareholders showing the election of executives and inspectors;
• a declaration (on a form provided by the Companies Registration Office).
• statement defining the general circulation newspaper in which the legal notices of the company will be printed;
Please feel free to contact our team of company incorporation specialists in Iran if you want to register a company in the country.