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Starting a Business in

Iran, Islamic Rep

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Iran, Islamic Rep. It examines the procedures, time and cost involved in launching a commercial or industrial firm with between 10 and 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016.

Compare Iran, Islamic Rep to 189 other economies.

  • No. Procedure Time to Complete Associated Costs
    1

    Obtain husband's permission to open a business

    Agency: Domicile

    According to Civil Code Art. 1117, the husband can prevent his wife from occupations or technical work which is incompatible with the family interests or the dignity of himself or his wife. Therefore, a married woman must obtain the permission of her husband to open a business and commence the business incorporation process.

    1 day no charge
    2

    Obtain a criminal record clearance

    Agency: Police Electronic Service Centers

    Under articles 111 and 147 of the amendments to the Commercial Code of 1969, a criminal record clearance must be obtained from all company directors in order to register a new company.

    5 days on average IRR 150,000 (IRR 50,000 per criminal record and IRR100,000 to the account of the Justice Department in Tehran)
    3

    Reserve a unique company name, Register at the Companies Registration Office and Pay the registration fees

    Agency: Companies Registration Office

    To register with the Companies Registration Office, the company must submit the following documents:
    - Articles of association, signed by all shareholders
    - Declaration stating that all shares have been subscribed
    - Minutes of the general assembly of founders and board of directors
    - Minutes of the shareholders’ meeting, reflecting the election of the first directors and inspector(s)
    - Written statement accepting the position of directorship and inspectorship
    - National ID Card (Carte Melli) and birth certificates (certified copies) of the shareholders and inspectors
    - Name of a mass circulation newspaper in which all company announcements will be published

    Application files are assigned a bar code so that each internal desk that receives the file tracks its entrance and exit. In addition, an electronic payment system is conducted with a card and a machine is used to pay registration fees.

    3 days IRR 375,000 for registration and IRR 40,000 for name search and reservation.
    4

    Place a notice of the company formation in the Official Gazette and the selected newspaper of general circulation

    Agency: Official Gazette

    It is possible to directly publish the notice of the company formation through the Official Gazette and the selected newspaper or general circulation or submit it to the post office, which then forwards them to the Gazette. This process takes 15 to 30 days. However, businesses do not need to wait until the publication is completed to start their business. Upon submission of the registration notice to the official gazette for publication, a copy thereof is affixed with the stamp of the official gazette office indicating that the notice is in the process of publication. This notice, bearing the stamp of the official gazette, in terms of the start of business operations holds the same value as the notice published in the Gazette. Thus, with this notice, the company can proceed with business operation formalities.

    1 day IRR140,000 for official Gazette; IRR 240,000 for general circulation newspaper
    5

    Notify the State Tax Affairs Organization of the commencement of business activities

    Agency: State Tax Affairs Organization

    As per Article 177, Note 3 of the Direct Tax Act, the new company must notify the State Tax Affairs Organization in writing of the commencement of its business operations within 4 months. Failure to do so will result in a fine and a deprivation of any applicable tax facilities and exemptions.

    1 day no charge
    6

    Register for VAT

    Agency: State Tax Affairs Organization

    The registration for VAT is needed for a company performing general industrial or commercial activities such as the case-study measured by Doing Business. The legal basis for such registration is the Law of Implementation of the Value Added Tax enacted in 1387 (as amended). There is no cost for VAT registration, and it can be completed online through www.evat.ir. The State Tax Affairs Organization is part of the Ministry of Economic Affairs and Finance.

    2 days no charge
    7

    Retrieve the officially sealed books of account within 30 days of registration

    Agency: Authorized Vendor

    The cost depends on the number of pages of the official sealed books of account.

    1 day IRR 100,000
    8

    Pay the share certificate stamp duty within 60 days of company registration

    Agency: Bank

    According to Article 48 of the Direct Taxation Act, the stamp duty must be paid within 60 days of company registration. It is paid at Bank Melli Iran because it is an official government duty.

    1 day 0.05% of the par value of the subscribed share capital
    9

    Enroll workers in the social security program at the Iranian Labor Department and Obtain a workplace number

    Agency: Labor Department

    To open files in the social security program, the applicant sends a copy of the first monthly salary report to the Iranian Labor Department with a premium contribution of 33% of the employee’s monthly salary (7% worker, 23% employer, 3% unemployment contribution, and 3% government).

    1 day no charge

    Applies to women only.