Under the relevant Iranian laws and regulations company means the union of capital and credit of two or more than two persons in order to conduct allowed activities. To enjoy protection of the law company must be registered before the relevant authority which in Iran is the Corporate Registration Bureau. By registering the company, it becomes a legal entity, separated from its founders, with its own asset and property. This make it easier and more reliable for people to develop their business with the company or vice versa.
Furthermore, being registered, the company can benefit from many advantages that laws and regulations offer to valid registered companies; of which the followings may be stated:
Types of Companies in Iran
There are eight types of companies recognized by the relevant Iranian law, i.e. Commercial Code of Iran, that applicants are able to conduct their intended commercial or non – commercial activity through registering one of them based on the subject matter of their business.
The recognized type of companies are:
Mindful of the above options, however, the most widely registered companies in Iran are:
According to the Amending Bill to Commercial Code of Iran Act, a Private Joint Stock Company is a company whose capital is divided into shares and the liability of its shareholders is limited to the par value of the shares respectively held by them and the share capital, in its entirety, is secured by its founders at the time of its formation.
Limited Liability Company, which is the most common type of corporation in Iran, is defined by Article 94 of the Commercial Code of Iran as a company formed between two or more persons for the purpose of trading while the company’s capital is not represented by shares or bonds and each partner is responsible for the responsibilities and obligations of the company merely to the extent of its contribution.
Required Documents for Registration of Private Joint Stock Company in Iran:
Required Documents for Registration of Limited Liability Company
Bayan Emrooz Law Firm was founded in 2008 under the registration No. 23211 in Tehran, and renders legal consultation and attorneyship services to foreign or domestic legal and natural persons. Our approach and main purpose is to expand the culture of utilizing legal consultation in civil and commercial matters in order to prevent high personal or social costs spent on resolution of disputes before judicial and non judicial authorities.