Establishing free-trade industrial zones in Iran, hereinafter referred to as TIFZs, has been used as a vehicle to explore economic power. The TIFZ is regarded as a tool that effectively generates a broad market base that brings about diversity and also attracts foreign investment in Iran. The incentive for the established of TIFZs in Iran arose back in 1989 when the country was in need to reconstruct the country’s economy. The first step towards this goal was the implementation of the first Five-Year Economic, Social and Cultural Development plan. Via the implementation of this plan, certain areas were elected to be free trade areas. The purpose of this was to embrace the concept of a free market, promote non-oil exports and finally by these means attract foreign investment. At present, there are seven TIFZs established in Iran and they are the following:
What makes Iran’s TIFZs distinguishable is the geographical location of these zones. The TIFZs that currently exist in Iran all have direct access to international waterways, Kish and Qeshm Islands being proof of this since they are located in the Persian Gulf. Chahbahar has direct access to the Sea of Oman and Anzali has direct access to the Caspian Sea. When contemplating investment in Iran all these factors are an enabler as foreign investors are put in close proximity to regional markets. Having access to these markets also means that the investors will have easy access to the goods and commodities of the neighboring markets such as those of central Asia and the UAE states.
The TIFZs are all administered by an authority formed exclusively for each zone. This authority is organized as a company and possesses its own autonomous legal status. The TIFZs have their own special set of laws and by-laws and are thus regulated by these. The regulating law for these areas is “Administration of Free-Trade Industrial Zones of the Islamic Republic of Iran Act”. All matters pertaining to import, export, investment, insurance, banking, and labor and employment are covered by the above-mentioned law. What this in fact means is that TIFZs are therefore in matter related to such as issuance of visa, entry and residence of foreign nationals, monetary and banking operating and establishing a company excluded from the laws of the mainland in those areas.
The exclusion from the customs authorities is perhaps the biggest advantage attached to TIFZs. This exclusion capacitates the freedom of inflow and outflow of goods and commodities for the TIFZs. However, there are plenty more advantages that come with investing in TIFZs chief among them are:
Bayan Emrooz Law Firm renders services to foreign and Iranian natural and legal persons in the field of investment in Trade-Industrial Free Zones of Iran, including consulting, for entrance to the zone, registration of a company, branch and representative office, labor and tax laws and residency in the zone. Having an experienced and specialized legal staff, Bayan Emrooz is ready to provide the needed legal services in respect to investment and conducting business in Iranian Trade-Industrial Free Zones.
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.