The core foreign investment law in Iran, is the Foreign Investment Promotion and Protection Act (FIPPA). The FIPPA grants foreign investors the similar rights, protections and facilities available to domestic investors. This includes permission for investment in fields where private sector activity is allowed and permission to hold up to 100% of shares in Iranian legal entities.
In conjunction with FIPPA, the General Policies About Principle 44 of the Constitution of the Islamic Republic of Iran (2005), and law on Implementation of General Policies of Principle 44 of Constitution Law, and the Economic Development Plans, are main guidelines leading the foreign investment in Iran.
Moreover, Iran has entered into more than 50 bilateral investment treaties with other countries, providing for the promotion, admission and protection of investments by investors of such contracting parties. This includes assurances that the foreign investments will be treated no less favorably than its own investors are treated in such contracting party’s country.
The Organization for Investment Economic and Technical Assistance of Iran (OIETAI) is responsible for encouraging, financing, and regulating foreign investment in Iran. The organization for Investment, Economic, and Technical Assistance of Iran (OIETAI) was founded in 1975. The requests made by foreign investors concerning admissions, inflow, use, and outflow of capital must be submitted to OIETAI.
The OIETAI’s purpose is to regulate and conduct affairs related to foreign investments, admission of foreign investments and credits to international investors, acquisition of any loan and credit from abroad, and provide legal protection to foreign investors by simplifying the flow of capital into the country. Furthermore, OIETAI organizes and coordinates international economic relations with other countries and has established Joint Economic Commissions with several countries
However, despite all of the positive steps that have been taken to attract foreign investment, there are some problems in the Iranian legal system that need in-depth examination when considering an investment in Iran. Also, each investment will have its own specific issues which will need to be resolved.
Bayan Emrooz Law Firm renders services to foreign and Iranian natural and legal persons in the field of corporate law, including consulting and registration of a company, branch and representative office. Having an experienced and specialized legal staff, Bayan Emrooz is ready to provide the needed legal services in respect to investment and formation of company in Iran.
