Company Registration in Iran: A Complete Step-by-Step Guide

Starting a business in Iran can be a rewarding experience if you know the right steps for company registration. Whether you’re an entrepreneur looking to establish a local presence or a foreign investor exploring new opportunities, understanding the process of registering a company in Iran is crucial. In this guide, we’ll break down the essential steps, the paperwork, and the costs involved, helping you navigate through the legal requirements with ease.

Why Register a Company in Iran?

Doing business in Iran comes with its own set of challenges—sanctions, economic instability, and currency fluctuations—but for many companies, especially those from countries like China, South Korea, Taiwan, the UAE, Oman, and Afghanistan, registering a company in Iran is necessary for smoother operations.

While sanctions can complicate transactions and limit access to international banking systems, Iran remains a key player in regional trade, with access to the Middle East and Central Asia. For companies already engaged in trade with Iran, formal registration allows them to:

• Secure local contracts
• Access the national banking system
• Comply with regulations for import/export activities
• Build credibility and long-term partnerships with Iranian companies

Without a registered entity, foreign businesses may face difficulties in working with local partners, as Iranian businesses often prefer dealing with companies that have an established presence within the country. Therefore, despite the challenges, companies from Iran’s major trading partners often find that registration is essential for their operations.

Step-by-Step Process for Company Registration in Iran

Step 1: Choose the Right Business Structure

Your first step is to decide on the business structure that best fits your needs. Common options include:

• Limited Liability Company (LLC): Suitable for small to medium-sized businesses with flexible requirements.
• Private Joint-Stock Company: Designed for larger companies with multiple shareholders.
• Branch Office: Foreign companies may choose to set up a branch or representative office in Iran.

Step 2: Reserve Your Company Name

Propose a unique company name that complies with Iranian legal and cultural standards. The name must not be previously registered. The registration process begins with submitting a name reservation request through the Company Registration Office’s website.

Step 3: Prepare the Necessary Documents

You’ll need the following documents to proceed with registration:

• Company name and type
• Articles of association
• Identification of shareholders and directors
• Company address and proof of location (e.g., rental contract)
• Shareholders’ capital contribution declaration

For foreign investors, additional documentation like passports and translated licenses may be required.

Step 4: Submit Your Application Online

Submit all the required documents through the official Company Registration Office website (irsherkat.ssaa.ir). Keep in mind, the site is in Persian, and foreign applicants may need local legal assistance to complete the process.

Step 5: Pay Registration Fees

The registration fees will vary based on the type of business and declared capital. Payment is made through the local banking system, which foreign investors will need to arrange accordingly.

Step 6: Publish in the Official Gazette

Once your application is approved, you’ll be required to publish the company’s details in the Official Gazette (روزنامه رسمی), which serves as public notification of the company’s registration.

Step 7: Obtain a Business License (if necessary)

Certain businesses require additional permits or licenses from relevant ministries or regulatory bodies, depending on the industry (e.g., healthcare, construction, imports).

Costs and Timeframe

The cost of registering a company in Iran typically ranges from $400 to $800, depending on the company type, capital, and legal assistance. The registration process generally takes between 7 and 14 business days, assuming all documents are in order.

Key Considerations for Foreign Investors

Foreign investors can fully own their companies in Iran, but the process involves extra steps, such as obtaining an investment license from the Organization for Investment, Economic and Technical Assistance of Iran (OIETAI). This license allows for profit repatriation and other protections under Iranian investment law.

It’s also essential to note that Iran’s financial system is not fully integrated with international banking networks, which means foreign businesses may need to establish local accounts or use alternative payment solutions.

Summary of the Company Registration Process

Below is a quick reference table summarizing the key steps for company registration in Iran.

This guide provides you with an overview of how to navigate company registration in Iran. While there are challenges, especially for foreign investors, following these steps ensures that you’re prepared for a smooth registration process.