Foreign Direct Investment in Iran - Laws Concerning Foreign Companies

Laws Concerning Foreign Companies

See also: Constitution of Iran, Taxation of foreign companies in Iran, and List of major economic laws in Iran

Generally speaking, Iran has two types of laws concerning foreign companies. The first are laws that address issues concerning foreign companies directly such as the Foreign Investment Promotion and Protection Act (FIPPA) and the second are general laws of which certain articles or by-laws address foreign companies, for instance the Taxation Law and the Labor Law.

General laws and regulations regarding foreign business in Iran could be regrouped under the following categories:

  • Contract work - A foreign company is allowed to be involved in contractual work in Iran. Such work may be performed either directly by the foreign company or through a registered branch in Iran.
  • Direct sales - Most foreign companies are involved in direct sales to Iranian customers through letters of credit and, occasionally on the basis of Usance.
  • Investments - In accordance with the terms of the Foreign Investment Promotion and Protection Act (FIPPA), foreign companies may invest in newly established factories and industries. Foreign companies are allowed to own 100 per cent of the businesses in the free economic zones.

Read more about this topic:  Foreign Direct Investment In Iran

Famous quotes containing the words laws, foreign and/or companies:

    “The main foundations of every state, new states as well as ancient or composite ones, are good laws and good arms ... you cannot have good laws without good arms, and where there are good arms, good laws inevitably follow.”
    —Niccolò Machiavelli (1469–1527)

    “It tosses up our losses, the torn seine,
    The shattered lobster pot, the broken oar
    And the gear of foreign dead men. The sea has many voices,
    Many gods and many voices.”
    —T.S. (Thomas Stearns)

    “Socialite women meet socialite men and mate and breed socialite children so that we can fund small opera companies and ballet troupes because there is no government subsidy.”
    —Sugar Rautbord, U.S. socialite fund-raiser and self-described “trash” novelist. As quoted in The Great Divide, book 2, section 7, by Studs Terkel (1988)