Legal Aspects of Constructing and Operating Tourism Establishments in Iran – Chapter two
Part one: related regulations and procedures
In this chapter, the most important approved regulations passed by The Islamic Consultative Assembly (Majlis) and other authorities which are related to hospitality and tourism, shall be discussed.
Part two: incentives and legal support for investment in Tourism
A wide range of initiatives have been foreseen to encourage and support foreign investment in the tourism industry. The aim is to take investors’ concerns into consideration and solve their potential problems to encourage their investments in the hospitality and tourism industry. The following are a selected few of important incentives put in place by the government of Islamic Republic of Iran:
Part three: the process of issuance of principal agreement letters and establishment permits
The process of issuance of principal agreement letters and establishment permits is as follows:
The procedure of the issuance of agreement letters by ICHHTO:
Application for receiving bank facilities
Every individual or entity, privately owned or cooperative, can lodge their application for receiving bank facilities after they have received their agreement letter, have their construction plans approved and have deposited their 20% share into their bank account. The applicants’ share are in fact their investment before or during application for receiving bank facilities. This share is shown in their costs after buying land and before construction commencement (expenditures such as legal charges and permits costs, consultant engineer fees, etc), when they are about to build 20 percent of the construction project on their own costs or it can be directly deposited into their bank account in cash. Facilities for tourism and cultural heritage establishments are being offered in construction, repair (modification), developing and equipping, and renovation of the approved projects which are all responsibility of ICHHTO and assigned banks.
The amount of these facilities is a function of the projects’ potentiality and the amount of capital invested or to be invested in the projects. Investors [should] choose projects considering factors such as general and specific conditions of each area, region or zone, technical, economic and financial conditions, and then move toward buying lands and building infrastructures. Technical, economic and financial feasibility are some important persuading (dissuading) factors to attract investors to tourism industry. If a plan or project lacks such feasibility study, it will not be practicable and the investor(s) will encounter serious problems during or after the project. Therefore, it is highly recommended that the investors conduct precise and reliable investigations through their investment goals before they start their investments.
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.